1. The market price of this bond on January 1, 2003 was $1,041.58 Calculate the percentage capital gain (or loss) on this bond. The percentage capital gain or loss is:
A) +1.23%
B) -1.23%
C) +0.68%
D) -0.68%
2. On its savings accounts, the First National Bank offers an 8.5% nominal interest rate that is compounded quarterly. What is the corresponding nominal rate compounded monthly that Second National Bank should offer to provide the same effective annual rate?
A) 7.12%
B) 7.45%
C) 8.44%
D) 8.50%
E) 8.77%