Question
Given 6% interest: solve each of the following 1. PV = $250 received in 5 years 2. FV = $500 invested for 4 years 3.
Given 6% interest: solve each of the following
1. PV = $250 received in 5 years
2. FV = $500 invested for 4 years
3. PV = $250 received in 4 years and $300 received in 2 years; nothing otherwise.
4. FV = $400 invested for 2 years and $300 invested for 2 years.
5. PV = $500 received each year for 4 years
6. FV = $500 invested each year for 4 years
7. Consider that a 10-year UST offers 3.5% return, but a 10-year AAA Corporate Bond offers 4.2% => what causes the difference of 0.7%?
8. Consider that a 1-year UST offers 1.5%, but a five-year UST offers 2.1% => what two influences could be causing the 0.6% difference?
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