QUESTION $1$

Davi currently has $$10,000$ saved for a new car that she plans to buy for $$40,000$ in $3$ years. She believes she can earn an annual return of $6\mathrm{.}36$ percent.

How much does Davi need to save each month for $3$ years to have exactly enough in $3$ years to pay for her car if she makes her next savings contribution

later today?

QUESTION $2$

Vigdis owns one bond A and one bond $B.$ The total value of these two bonds is $$2\mathrm{.}100.$ Bond A pays semi$-$annual coupons, matures in $6$ years, has a face

value of $$1000,$ and pays its next coupon in $6$ months. Bond B pays annual coupons. matures in $17$ years, has a face value of $$1000,$ has a yield$-$to$-$

maturity of $7\mathrm{.}00$ percent, and pays its next coupon in one year. Both bonds have a coupon rate of $7\mathrm{.}60$ percent What is the yield$-$to$-$maturity for bond A$?$

Answer in decimal format, rounded to the nearest hundredth of a percent $($for example $1\mathrm{.}28\%$ would be entered as $0\mathrm{.}0123).$

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