| Calculate the duration of a five-year bond with face value of $1000, fixed coupon of 8% per annum, with current market yield of 9%. 7) a) 4.13 years b) 4.30 years c) 4.72 years d) 5.00 years If you are saving for an overseas trip and put $400 every month into an account paying 6.8% interest per annum, compounding monthly, how much will you have at the end of 3.25 years? 8) a) $ 5,014.43 b) $16,907.41 c) $17,001.84 d) $17,043.22 A bank accepts a deposit of $450,000 for a term of one year and 90 days, with an interest rate of 7.25% per annum simple interest. Interest is paid six monthly at the maturity date. How much interest will be paid in total? 9) a) $40,669.52 b) $40,696.52 c) $40,966.52 d) $40,699.52 10) JB Norman has received an invoice of $90,000 due in 60 days. The supplier offers 3% discount for immediate payment. If JB Norman pays immediately, what amount would be due? a) $85,955.34 b) $89,585.34 c) $89,558.34 d) $86,585.34 11) Suppose you want to buy an apartment when you graduate in 4 years' time which costs around $400,000. If you feel confident that you can earn 9% per year, how much do you need to invest today? a) $288,730 b) $283,730 c) $238,370 d) $283,370 12) What is the future value in five years of $20,000 invested today, compounding at 5.97% interest per annum? a) $26,627.65 b) $26,726.65 c) $26,762.65 d) $26,267.65