For a person that requires a10 percent annual return, which is better $1.00 today or $1.15 in one year?

Which is greater, the future value with compound interest of 4% or the future value with simple interest of 4%?

Which is greater, when 4% interest is compounded more than once a year, or 4% per year?

You have the right to receive $1000 in five years. Is the present value higher when the interest rate is 4% or when the interest rate is 8%.

If you want to know how long it will take to convert $100 to $400 at 8% interest, what type of problem is this and what function would you use?

If you want to know what you will have in 5 years at 8% if you invest $100 now, what type of problem is this and what function would you use?

If you want to know how much you need today to have $400 in 5 years at 8%, what type of problem is this and what function would you use?

If you want to know what rate of return is necessary to convert $200 to $600 over a 4 year period, what type of problem is this and what function would you use?

What is the difference between an ordinary annuity and an annuity due?

What is a perpetuity and how would you find the value of a perpetuity?

If small amounts of money occur before one large amount of money, what type of problem is this?

If you buy a house and take out a 5% mortgage and make payments over the next 30 years, what type of problem is this?

Loan A has a $100,000 borrowed at 10% for 10 years. Loan B has $100,000 borrowed at 11% for 10 years. Which loan will have the higher monthly payment?

Loan A has a $100,000 borrowed at 10% for 7 years. Loan B has $100,000 borrowed at 10% for 10 years. Which loan will have the higher monthly payment?

Tom puts $500 into a savings account for 20 years and earns 10% interest. Jerry puts $600 into a savings account for 20 years and earns 10% interest. Who has the higher future value?

Tom puts $500 into a savings account for 20 years and earns 8% interest. Jerry puts $500 into a savings account for 20 years and earns 10% interest. Who has the higher future value?

Tom puts $500 into a savings account for 10 years and earns 10% interest. Jerry puts $500 into a savings account for 10 years and earns 10% interest. Who has the higher future value?

18. Jesse just won the state lottery. He has been given the option of receiving either $5 million a year for the next 30 years, with the first payment paid today. Is this a present value or future value of an annuity due?

What is the difference between the coupon rate and the market rate or yield?

When, in a bonds life, would the market rate (or yield) equal the coupon rate?

Why do these rates often diverge over time?

Do most corporations pay semi-annual interest payments or annual payments?

Do debtholders share in the upside of corporations or do they just get their interest payments and face value back (regardless of how well the company does in the future)?

What happens to bondholders when the company does poorly in the future and cannot make the interest payments?

Are all bondholders treated the same or do some bondholders have priority over others.

What is a debenture?

What are some typical secured bonds?

What is a mortgage?

Would investors want higher interest payments (higher yields) or lower interest payments (lower yields).

Would Harley Davidson or Walmart pay a higher interest rate on a 20 year bond?

What influence does the number of years to maturity have on the risk and consequently the yield of a bond?

What do you call the agreement that delineates what the corporations will do during the life of the bond?

What is a sinking fund?

What are the two most common protective covenants in most corporate bonds?

Are most corporate bonds callable or not callable?

Is the call option good for the corporation or good for the investor?

When do corporations call their bonds when interest rates go up or when interest rates go down?

Who are the two largest credit rating agencies for corporate bonds?

What risk is the rating agencies rating when they rate bonds?

Securities that are rating with the top four credit ratings are considered what?

What are the inferior rated (less than the top four ratings) bonds called?

Are most bonds traded like stock or bought and sold (or held to maturity) through investment bankers?