1. If the interest rate is 3.7% per year, how many years are required for $145 to increase to $213?
A) 11.5
B) 11.1
C) 10.2
D) 10.6
E) 9.9
2. Quigley Inc’ bonds currently sell for $1,050. They have a 10-year maturity, an annual 6% coupon rate, and a YTM of 4.2%. The bond’s capital gains yield is _____?
a. 1.5%
b. -1.5%
c. 5.7%
d. -5.7%
e. 6%