1. Bohenick Classic Automobiles restores and rebuilds old classic cars. The company purchased and restored a classic 1957 Thunderbird convertible six years ago for $8,500. Today at auction, the car sold for $50,000. What are the holding period return and the annual return on this investment?
2. HexChat, Inc. has issued 15 year bonds 5 years ago. The bonds pay semiannual coupons, with a coupon rate of 4.8 percent, and $1000 face value. If your required return on this investment is 9.2 percent APR, how much would you be willing to pay for this bond?