How much money must she and employer deposit each quarter

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1. Tattersall Clothiers plans to issue 6-year bonds with a par value of $1000 and an 8% coupon paid quarterly. Based on current market conditions, they expect that these bonds will sell for $1070. Given this information, what is the effective yield on Tattersall’s bonds?

2. Meg's pension plan is an annuity with a guaranteed return of 5% per year (compounded quarterly). She would like to retire with a pension of $10,000 per quarter for 5years. If she works 17 years before retiring, how much money must she and her employer deposit each quarter?

(Round your answer to the nearest cent.)

Reference no: EM132001321

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