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1) You have just won the Strayer Lottery jackpot of $11,000,000

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1) You have just won the Strayer Lottery jackpot of $11,000,000. You will be paid in 26 equal annual installments beginning immediately. If you had the money now, you could invest it in an account with a quoted annual interest rate of 9% with monthly compounding of interest. What is the present value of the payments you will receive?

2) You are considering a 10-year, $1,000 par value bond. Its coupon rate is 9%, and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below.

If you require an "effective" annual interest rate (not a nominal rate) of 11.93%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.