1.You are planning for your grandchild's education, and estimate that it will cost $52,500 in 12 years. How much do you need to invest today, if you can earn 4.83 percent compounded annually?

2.Jessie's Jewels has a bond with a $1,000 face value, paying semi-annual coupons of $12 each. The current market price is $1,016.24, and the bond has ten years to maturity. What is its yield to maturity?

3.A firm is considering the following project with a life of six years: initial cost of $375,000, annual cash inflows of $75,000 at the end of each of the first four years, and $100,000 at the end of each of the last two years. What is the payback period?

4.The J. Spader Store has net fixed assets of $466, long term debt of $403, cash of $206, current assets of $826, and current liabilities of $231. What is the value of owners' equity if that is the only other item on the statement of financial position?