Question
1) A $10,000 10% semiannual bond redeemable at par. What is the purchase price and premium/ discount 10 years before maturity if the bond is
1) A $10,000 10% semiannual bond redeemable at par. What is the purchase price and premium/ discount 10 years before maturity if the bond is bought to yield 12% compounded semiannually.
2) you would like to retire in 40 years with $2,000,000. How much should you invest annually if you expect to make 8% on stocks and bonds.
3) what statement is true about the yield curve ? a.when there is economic boom, the yields of short term bonds are higher than the yields of long term bonds b.none of the above c.when there is a threat of recession, the yields of short term bonds are higher than the yields of long term bonds .d.it gets inverted after the intrest rates are decreased e.it shows how much debt the goverment beaars
4) A $10,000 10% semiannual bond is redeemable at par. What is the purchase price and premium/discount 10 years before maturity if the bond is bought to yield 10% compounded semiannually.
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