QUESTION 11

1. Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $8,000 per month beginning with the first month after your 70th birthday until you reach your birthday at age 100. If the account which contains your savings earns 7% APR compounded monthly, how much money needs to be in the account by the time you reach your 70th birthday? (Answer to the nearest dollar.)

QUESTION 12

1. Today is your 25th birthday, and you want to save $1.4 Million by your birthday at age 70. If you expect to earn 7% APR compounded monthly in your retirement account, what constant payment at the end of each month must you deposit into the account through your 70th birthday in order to reach your retirement savings goal on your 70th birthday? (Answer to the nearest penny.)

QUESTION 15

1. A 6.4% coupon bearing bond pays interest semi-annually and has a maturity of 6 years. If the current price of the bond is $1,023.87, what is the yield to maturity of this bond? (Answer to the nearest tenth of a percent, e.g. 12.34%)

QUESTION 18

1. A company just paid a dividend of $0.79 per share and you expect the dividend to grow at a constant rate of 5.2% per year indefinitely into the future. If the required rate of return is 12.4% per year, what would be a fair price for this stock today? (Answer to the nearest penny per share.)

ANSWER ALL THE QUESTIONS PLEASE.