Question
Question 1 : A) Assume that you will deposit $4000 at the end of each of the next three years in a St. George bank
Question 1: A) Assume that you will deposit $4000 at the end of each of the next three years in a St. George bank account paying 8% interest. You currently have $7000 in the account. How much will you have in three years? In four years? B) You are looking into an investment that will pay you $12,000 per year for the next 10 years. If you require a 15% return, what is the most you would pay for this investment? C) A bond has an 8% coupon, paid semi-annually. The face value is $100, and the bond matures in 6 years. If the bond currently sells for $91.137, what is the yield to maturity? What is the effective annual yield? I need proper calculation with justification whereas required.
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