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1) Jenna is planning to retire and would like to set up an income fund so that she will be able to withdraw $2000 each month for the next 10 years

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1) Jenna is planning to retire and would like to set up an income fund so that she will be able to withdraw $2000 each month for the next 10 years. Her account earns 3.25% per annum, compounded monthly. How much will Jenna have to deposit now in order to provide for the fund?

2) Thatcher Corporation's bonds will mature in 10 years. The bonds have a face value of $1,000 and an 8% coupon rate, paid semiannually. The price of the bonds is $1,100. The bonds are callable in 5 years at a call price of $1,050. What is their yield to maturity? What is their yield to call?