1. The nominal rate of return is ______% earned by an investor in a bond that was purchased for $928, has an annual coupon of 5%, and was sold at the end of the year for $1014? Assume the face value of the bond is $1,000.
2. You have just retired with savings of $9 million. If you expect to live for 46 years and to earn 10% a year on your savings, how much can you afford to spend each year (in $ dollars)? $_______. (Assume that you spend the money at the start of each year.)