1. You purchase a 30 year zero treasury at 4%. You are also offered a 30 year corporate bond (quarterly paying) at 5%. (4 points) A. Which reinvestment rate do you need to be paid in order to sell your treasury and buy the corporate bond? B. Assuming a reinvestment rate of 2%, what is the yield spread between the corporate and the treasury bond? 2. You want to save for your retirement. You commit to save $10,000 per year in a bond fund which pays 3.5%. Assuming you make all your saving contributions on the first of year. (4 points) A. You want to retire with $1,000,000 in investments. How many years of scheduled contributions will you have to make? B. How much of this $1 million nest egg is "saving" and how much is investment income?