Q1: Bonds A and B are identical, but bond A is callable at a price of $105, whereas bond B is callable at price $110. Which do you predict will have a higher YTM? Why?

Q2: Suppose you are invested in an (excellent) account that pays 50% interest per year, paid monthly. The account is closed to new investment, so you cannot reinvest the interest. Do you prefer this account to one that pays a single payment of 50% at the end of the year, rather than monthly? Why or why not? Explain your reasoning (you may wish to reference ideas like compounding, NPV, IRR, etc.)