Problem
1. The winner of a state lottery will receive $5,000 per week for the rest of her life. If the winner's interest rate is 6.5% per year compounded weekly, what is the present worth of this jackpot?
2. What is the maximum price you will pay for a bond with a face value of $1,000 and a coupon rate of 14%, paid annually, if you want a yield to maturity of 10%? Assume that the bond will mature in 10 years and the first payment will be received in one year.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.