1. Ron and Wally each open up new bank accounts at time 0. Ron deposits $X into his bank account, and Wally deposits $1000 into his bank account. Each account earns the same force of interest of 6.93%. Ron's account doubles in value the end of n years. Determine the amount of interest eamed in Wally's account during the n-th year.
2. A six-year bond has an annual coupon of 5.5, redemption value of 100, and a required rate of return of 7%. What is the value of the bond?