Given the following information what is the current bond price?

Required Rate of Return is 9%, Coupon is 8%, Term is 3 years and coupon paid semiannually.

Upon graduating from college this year, you expect to earn $25,000 per year. If you get your MBA, in one year you can expect to start at $35,000 per year. Over the year, inflation is expected to be 5 percent. In today's dollars, how much additional (less) money will you make from getting your MBA (to the nearest dollar) in your first year?

A) $2,462

B) $8,333

C) $8,750

D) $9,524

E) $10,000

You want to have $5 million when you retire in 40 years. You believe you can earn 9 percent per year on your investment. How much must you invest each year to achieve your goal when you retire? (Ignore all taxes.)

A) $10,412

B) $11,619

C) $14,798

D) $15,295

E) None of these choices are correct.

Duration is

A) the elasticity of a security's value to small coupon changes.

B) the weighted average time to maturity of the bond's cash flows.

C) the time until the investor recovers the price of the bond in today's dollars.

D) greater than maturity for deep discount bonds and less than maturity for premium bonds.

E) the second derivative of the bond price formula with respect to the YTM.