1. George is considering buying a new house and has to borrow $50,000 to pay for it. He plans to take a mortgage loan from bank for 10 years, which requires monthly payments and the interest rate is 15 percent. How much does George have to pay for a loan repayment each month?
2. Blue Crab, Inc. plans to issue new bonds, but is uncertain how the market would set the yield to maturity. The bonds would be 15-year to maturity, carry a 9.18 percent annual coupon, and have a $1,000 par value. Blue Crab, Inc. has determined that these bonds would sell for $1,175 each. What is the yield to maturity for these bonds?