1.If the coupon rate is equal to the market rate, the bond will be a:

Group of answer choices

A. premium bond

B.discount bond

C.at par bond

2.You have a choice between a Lexus ($50,000) and a Toyota ($25,000).How much will that Lexus cost you in retirement funds over the Toyota, if you retire in 40 years earning 8%?

3.I want to have $2,000,000 saved by retirement.How much do I need to save each year for 40 years if the rate-of-return is 8%?

4.Company X is issuing bonds.They plan to issue 10,000,$1000 par, 6% bonds that pay semi-annual for 5 years.

What are the proceeds from this bond sale if the market rate is 7%?

5.Company X is issuing bonds.They plan to issue 10,000,$1000 par, 7% bonds that pay semi-annual for 5 years.

If the price per bond is $980, what is the market annual rate-of-return? (percentage, 2 decimals, e.g. xx.xx)

6.Instead of buying lotto tickets, I decide to invest the funds.Assume we would normally spend $1000 a year on lotto tickets.How much will we have in at the end of 40 years at 8%?

7.I want to buy a house.The house costs $1,000,000.I put 20% down and borrow the rest.If the mortgage is 30 years, and the rate is 4.5%, what is the monthly payment?