1. A prestigious investment bank designed a new security that pays a quarterly dividend of $2.75 in perpetuity. The first dividend occurs one quarter from today. What is the price of the security if the APR is 5.3 percent, compounded quarterly?
2. You borrowed $100,000 to buy a house. Interest is 6% nominal per year, compounded monthly. You will repay the loan over the next 35 years with monthly payments. Which payment number (I.e. #14) is most nearly 30% interest and 70% principal?