1. If I think I need $100,000 a year in retirement for 30 years, how much do I need at retirement if the rate-of-return is 8%?

2.Company X is issuing bonds. They plan to issue 10,000, $1000 par, 6% bonds that pay semi-annual for 5 years.

If the bond price is $1020, what is the market annual rate-of-return? (percentage, 2 decimals, e.g. xx.xx)

3.Assume you will make $40,000/year with a high school diploma. You will make $50,000/year with art degree. Assume you work for 40 years and earn 8%. How much is that art degree worth? (hint: compare PVs)

4.If the coupon rate is less than the market rate, the bond will be a:

A.premium bond

B.discount bond

C.at par bond

5.If the coupon rate is greater than the market rate, the bond will be a:

A. premium bond

B.discount bond

C.at par bond

6.If I save $1000/year at a rate of 8%, how much will I have in 40 years?

If the price of the bond is greater than the par value, then the bond is a:

A. premium bond

B.discount bond

C.at par bond

7.Company X is issuing bonds. They plan to issue 10,000, $1000 par, 7% bonds that pay semi-annual for 5 years.

If the price per bond is $1020, what is the market annual rate-of-return? (percentage, 2 decimals, e.g. xx.xx)