1. Jenny Enterprises has just entered a lease agreement for a new manufacturing facility. Under the terms of the agreement, the company agreed to pay rent of $22,000 per month for the next 10 years with the first payment due today. If the APR is 8.76 percent compounded monthly, what is the value of the payments today?
$1,862,305.67
$1,606,788.18
$1,754,658.00
$1,712,307.53
$1,767,467.00
2. Whatever, Inc., has a bond outstanding with a coupon rate of 6.04 percent and semiannual payments. The yield to maturity is 6.1 percent and the bond matures in 15 years. What is the market price if the bond has a par value of $1,000?
$1,014.04
$997.00
$995.69
$994.16
$994.21