1. A bond with a face value of $20,000 was purchased in the market for $18,000. This bond pays an interest rate of 8% per year payable quarterly and it matures 8 years from now. The amount of the last payment (at the end of 8 years) is:
a) $400
b) $18,400
c) $20,000
d) $20,400
2. When comparing alternatives to unequal lives, the alternatives should be compared over:
a) The life of the shortest-lived alternative
b) The life of the longest-lived alternative
c) The least common multiple of their lives
d) An infinite time period