1)

You want to have $3 million in real dollars in an account when you retire in 40 years. The nominal return on your investment is 10 percent and the inflation rate is 4.8 percent.

What real amount must you deposit each year to achieve your goal?

Deposit amount

$

2) Backwater Corp. has 9 percent coupon bonds making annual payments with a YTM of 8.3 percent. The current yield on these bonds is 8.65 percent.

How many years do these bonds have left until they mature?

Maturity of bond

years