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Sara wants to have $500,000 in her savings account when she retires. How much must she put in the account now, if the account pays

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Sara wants to have $500,000 in her savings account when she retires. How much must she put in the account now, if the account pays a fixed interest rate of 8%, to ensure that she has $500,000 in 25 years time? A. $73,009 B. $102,213 C. $83,886 D. $131,416 A $5,000 bond with a coupon rate of 6.6% paid semiannually has two years to maturity and a yield to maturity of 7.8%. If interest rates rise and the yield to maturity increases to 8.1%, what will happen to the price of the bond? A. rise by $26.81 B. fall by $32.17 C. fall by $26.81 D. The price of the bond will not change. How much will the coupon payments be of a 25 -year $1,000 bond with a 5% coupon rate and quarterly payments? A. $12.50 B. $50.00 C. $25.00 D. $4.17

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