1) Assume the total cost of a college education will be $200,000 when your child enters college in 16 years. You presently have $58,000 to invest.

What annual rate of interest must you earn on your investment to cover the cost of your childs college education? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Annual Rate of Interest ___ %

2) Bourdon Software has 10 percent coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 107.8 percent of par.

What is the current yield on the bonds? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Current yield

%

What is the YTM?

YTM

%

What is the effective annual yield?

Effective annual yield

%

3) Youre prepared to make monthly payments of $260, beginning at the end of this month, into an account that pays 6.7 percent interest compounded monthly.

How many payments will you have made when your account balance reaches $17,000? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)