1. Suppose an investor buys a UK bond with a coupon rate of 8% at its price of £990. The bond's face value is £1,000. If the British pound depreciates by 5%, at what end of year selling price of this bond will the dollar return on the bond just equal 10%?
A) £1,037
B) £1,146
C) £1,198
D) £2,027
2. Joe and Jill just became grandparents for the first time. They were so excited they went out and started a 529 plan for their grandchild. They placed $2,000 in the fund today and will continue that for a total of 18 payments. They feel that college inflation will be 4% and they will be able to earn 6% on their invested funds. What will be the value of the fund when the child is 18?
A. $42,534
B. $43.352
C. $61,811
D. $65,520