Jose is 25 years old today and has a retirement plan that permits him to place monthly amounts of $150 into a retirement vehicle, beginning one month from now, for 30 consecutive years. When Jose reaches retirement at age 55, he expects to live for 40 more years. What is the most he can spend, per month, throughout all of his retirement years? Assume that his retirement benefits begin one month after his 55th birthday and an interest rate of 5%?

a. $ 435

b. $ 602

c. $ 829

d. $ 1,137

e. $ 313

2. You are trying to price two bonds that have the same maturity and par value but different coupon rates. Both bonds mature in 8 years and at maturity both bonds return the par value of $1,000. One bond has a coupon rate of 3% and a yield to maturity of 3%. The other bond has a coupon rate of 5% and a yield to maturity of 5%. What is the absolute value of the difference between the prices of these two bonds?

a. $ 140.39

b. $ 67.33

c. $ 62.10

d. $ 0

e. $ 119.43