Assume the firm invests $70,000 today at a 12% interest rates and would like to have it grow to $330,000. How many years will the investment take to grow to $330,000? Assume the interest rate compounds semiannually.

13.31 years

26.61 years

10.73 years

20.88 years

What is the market price of a zero-coupon bond (that is, a bond that will not pay any coupon payments) that will mature in 16 years and has the face value of $1,000? Assume the yield to maturity is 6.4%, and that it will compound semiannually.

$370.62

$604.12

$364.96

$1,000