1. Myers, Inc. will be making annual loan payments of $3,895.50 for a 10-year period starting at the end of this year. If the interest rate is 9 percent, what is the present value of this annuity?
A. $23,250
B. $25,000
C. $29,000
D. $30,250
2. Jenny Clayton is looking to invest in some 5-year bonds that pay annual coupons of 6.25 percent on a face value of $1,000 and are currently selling for $588.79. What is the yield to maturity on these bonds?
5 percent
10 percent
15 percent
20 percent