1. Sue now has $125. How much would she have after 8 years if she leaves it invested at 8.5% with annual compounding?,,a. $205.83,b. $216.67,c. $228.07,d. $240.08 ,e. $252.08,,2. How much would $20,000 due in 50 years be worth today if the discount rate were 7.5%?,,a. $438.03,b. $461.08,c. $485.35,d. $510.89,e. $537.78 ,,3. Suppose the U.S. Treasury offers to sell you a bond for $747.25. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000. What interest rate would you earn if you bought this bond at the offer price? ,,a. 4.37%,b. 4.86%,c. 5.40%,d. 6.00% ,e. 6.60%,,4. Bob has $2,500 invested in a bank that pays 4% annually. How long will it take for his funds to double?,,a. 14.39,b. 15.15,c. 15.95,d. 16.79,e. 17.67 ,,5. You want to buy a new sports car 3 years from now, and you plan to save $4,200 per year, beginning one year from today. You will deposit your savings in an account that pays 5.2% interest. How much will you have just after you make the 3rd deposit, 3 years from now?,,a. $11,973,b. $12,603,c. $13,267 ,d. $13,930,e. $14,626,,,6. Morin Company’s bonds mature in 8 years, have a par value of $1,000, and make an annual coupon interest payment of $65. The market requires an interest rate of 8.2% on these bonds. What is the bond’s price?,,a. $903.04 ,b. $925.62,c. $948.76,d. $972.48,e. $996.79,,7. Adams Enterprises’ noncallable bonds currently sell for $1,120. They have a 15-year maturity, an annual coupon of $85, and a par value of $1,000. What is their yield to maturity? , ,a. 5.84%,b. 6.15%,c. 6.47%,d. 6.81%,e. 7.17% ,,8. Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000, and it makes semiannual interest payments. If you require an 8.4% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?,,a. $1,105.69 ,b. $1,133.34,c. $1,161.67,d. $1,190.71,e. $1,220.48,,9. Grossnickle Corporation issued 20-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 19 years to maturity? ,,a. $1,113.48,b. $1,142.03,c. $1,171.32,d. $1,201.35 ,e. $1,232.15 ,,10. Malko Enterprises’ bonds currently sell for $1,050. They have a 6-year maturity, an annual coupon of $75, and a par value of $1,000. What is their current yield?,,a. 7.14% ,b. 7.50%,c. 7.88%,d. 8.27%,e. 8.68%,

Order Your Custom Essay

Order Your Custom Essay

Regent Papers is a library of common essays on high school, college, undergraduate and postgraduate topics. We have collected top papers from various institution, students and professors. The papers are based on common essay topics in all subjects.

M | T | W | T | F | S | S |
---|---|---|---|---|---|---|

« Oct | ||||||

1 | 2 | 3 | 4 | 5 | ||

6 | 7 | 8 | 9 | 10 | 11 | 12 |

13 | 14 | 15 | 16 | 17 | 18 | 19 |

20 | 21 | 22 | 23 | 24 | 25 | 26 |

27 | 28 | 29 | 30 | 31 |

2922 Oak Grove Drive La CaĆ±ada Flintridge, CA 91521.

+2 54723059803 (text only-sms)

© 2015 www.regentessays.com. All Rights Reserved