1. You want to have $4.5 million in real dollars in an account when you retire in 50 years. The nominal return on your investment is 8 percent and the inflation rate is 5 percent. What real amount must you deposit each year to achieve your goal? (Do not round your intermediate calculations .$41,608.94 $7,842.86 $43,689.39 $43,273.3 $39,528.49.
2. You purchase a bond with a coupon rate of 9.8 percent and a clean price of $1,060. If the next semiannual coupon payment is due in five months, what is the invoice price? $1,040.33 $1,114.74 $1,068.17 $1,032.17.