corprate finance

Assignment Word Arwa Azaabi 5 X File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do & Share QI. You are 21 years old today. Your grandparents set up a trust lund that will pay you $25,000 per year for 20 years, starting on your 65th birthday to supplement your retirement. If the trust can earn 7.5% per year, how much will your grandparents need to put in the trust fund today (rounded to the nearest ten dollars)? CLO 3[2.5 Marks Q2. It is your 6th birthday today. You have a trust fund with $50,000 that is earning 8% per year. You expect to withdraw $30,000 per year for 7 years starting on your 22nd birthday for graduate school. How much money will be left in the trust fund after your last withdrawal (rounded to the nearest S10)? CLO 3[2.5 Marks) CLO 415Marks Q3. You are considering a security with the following possible rates of return; a. Calculate the expectedrale of relurn. h. Calculate the standard deviation of the returns Relumn (X 9.5 0.25 0.50 0.10 Probability 0.1.5 13.6 14.9 25.3 Q4. FYI bonds have a par value of $1,000. The bonds pay $40 in interest every six months and will maliure in to years. . CLO 515Marks a. Calculate the price if the yield lo malurily on the bonds is 7, 8, and percent, respectively. h. Explain the impact on price if the required rate of retun decreases c. Compute the coupon rale on the bonds. How does the relationship beliveen the coupon rale and the yield to maturity determine how a lond's price will compxite to it pxit value? Page 2 of 2 Joll 100% 355 words * English (United States Type here to search 7:46 PM BI ENG 10/7/2020