1) Sandy has a choice between purchasing $10,000 in Treasury bonds paying 2% interest and purchasing $10,000 in BB rated corporate bonds with a coupon rate of 10%. What is the risk premium if Sandy opts for the Corporate Bonds versus the Treasury Bonds?

2) Tammy invested $1,000 in a mutual fund at a time when the price per share was $20. The fund has a load fee of $200. How many shares did she purchase?

2b) if Tammy had invested the same amount of money in a no-load fund with the same price per share, how many shares could she have purchased?

2c) Tammy later sells her shares in the mutual fund for $27.50 per share. How much additional gains in total would she have made if she had purchased the no-load fee fund from 1.b instead of the load fee fund in 1.a?