1. Calculate the present value of $8,000 received five years from today if your investments pay (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
A.) 5 percent compounded annually, B.) 7 percent compounded annually, C.) 9 percent compounded annually, D.) 9 percent compounded semiannually, E.) 9 percent compounded quarterly
2. The Alcoa 12.000% March 2052 bond is priced to yield 8.870% while the Burger King 12.000% March 2052 bond is priced to yield 9.550%. If the market assumes that there is a 22.097% probability that Alcoa will default on the bond then the market also assumes that the probability of default on the Burger King bond is _______% and the expected yield in this market is ___________%.