1.Wanda and Vision are looking into retiring and settling in the town of Westview. They are looking to see what the future value of a $5,500 annuity payment would be, paid over fifteen years, assuming that they will earn a 9.5 percent interest rate - calculate this amount. (Show your work) (If using the business calculator, show the function buttons and the amounts)

2.Yoda is looking into training new younglings to become Jedi's. But before he can get started, he needs to put his finances in order.

He has asked you to calculate the following annual values; compounding and discounting. (Each question is worth 7 points) (Show your work for each question) (If using the business calculator, show the function buttons and the amounts)

1. An initial $750 compounded for 12 years at 5.50%
2. An initial $900 compounded for 13 years at 6.25%
3. The present value of $1,200 due in 11 years at 7.75%
4. The present value of $3,450 due in 14 years at 8.10%

3. Spiderman has just sold his security investment in Disneyland, for $25,500. Two years ago, he had bought this security investment for $27,000. During the time that he held this investment, he made $500 in dollar income (earnings).

Calculate and tell me what was Spiderman's Realized Return (Yield) on his investment (show your work) (If using the business calculator, show the function buttons and the amounts).

4. Assume that the 3-month Treasury bill (real risk-free rate) is at 1.65% and inflation is expected to be 3.05% for the next 2 years. A 2-year Treasury security yields 6.85%. What is the maturity risk premium for the 2-year security? (Show your work) (If using the business calculator, show the function buttons and the amounts.

5. Supergirl has a Bond that has a $1,000 par value, 16 years to maturity, and a 9.5% annual coupon that sells for $1,080.

(Answer the following two questions) (Show your calculations) (If using the business calculator, show the function buttons and the amounts).

• What is its yield to maturity (YTM)? (10-points)

• Assume that the yield to maturity remains constant for the next five years. What will the price be 5 years from today? (15-points)

(Hint, you will need to discount the remaining years from the original maturity time and plug in the YTM from the previous question)

6. Fred's Pizzeria has outstanding bonds that have a $1,000 par value, a 12% semiannual coupon, 15 years to maturity, and a 9.5% YTM. What is the price of Fred's bond? (Show your calculations) (If using the business calculator, show the function buttons and the amounts).

7. Daffy Duck is considering investing in a retirement account. He plans on contributing $375 per month for 35 years earning 10 percent per year in a Wayne Enterprise Mutual Fund that is rated at BBB. How much will Mr. Duck have when he retires? (Show your calculations) (If using the business calculator, show the function buttons and the amounts).