1. Sue purchased a 10-year par value bond with semiannual coupons at a nominal annual rate of 4% convertible semiannually at a price of 1021.50. The bond can be called at par value X on any coupon date starting at the end of year 5. The price guarantees that Sue will receive a nominal annual rate of interest convertible semiannually of at least 6%. Calculate X.

2. Ethan invests 100 at the end of each year for 12 years at an annual effective interest rate of i. The interest payments are reinvested at an annual effective rate of 5%. The accumulated value at the end of 12 years is 1748.40. Calculate i.