Question
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%?
- 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)
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