1. Tattersall Clothiers plans to issue 6-year bonds with a par value of $1000 and an 8% coupon paid quarterly. Based on current market conditions, they expect that these bonds will sell for $1070. Given this information, what is the effective yield on Tattersall’s bonds?
2. Meg's pension plan is an annuity with a guaranteed return of 5% per year (compounded quarterly). She would like to retire with a pension of $10,000 per quarter for 5years. If she works 17 years before retiring, how much money must she and her employer deposit each quarter?
(Round your answer to the nearest cent.)