1. ABC has taken out an add-on interest loan for $100,000 at an annual rate of 4.9% for 4 years. The loan requires quarterly payments. What is the equivalent simple interest loan rate for this transaction?
8.05%
8.28%
8.52%
8.75%
2. A coupon bond which pays interest of $40 annually, has a par value of $1,000, matures in 5 years, and is selling today at a $159.71 discount from par value. The actual yield to maturity on this bond is __________.
5%
6%
7%
8%