Suppose the monthly compounded return of the bond account is based on the yield$-$tomaturity of a mutual fund that invests in $$1,000$ par bonds with coupon rates of $7\%$ that

pay semi$-$annual coupons with $30-$years to maturity $$ the mutual fund purchases these

bonds at a price of $$1,138.($Note: The YTM is based on semi$-$annual coupons, but the

return of the fund is compounded monthly.$)$

$2)$ The monthly compounded return on the stock account is based on the expected return of

your stock$$s forward dividend from Yahoo! Finance $($enter ticker and look below the

chart to $$Forward Dividend$,$ not yield$)$ that will growth at the $$Next $5$ years$$ Growth

Estimate annually $($click $$Analysis$$ from the left sidebar and scroll down to $$Growth

Estimates$$ do not use a stock with a negative growth!$)$ at its current price. $($Note: The

growth rate and return of the stock is based annual, but the return of the fund is

compounded monthly.$)$

$3)$ When you retire, you will combine your money into a single account.

$4)$ After combining the funds, you will withdraw from this account for $25-$years while

earning a return of $5\%,$ compounded monthly.

a$)$ Calculate the return on the bond account, in part $1).$

b$)$ Calculate the return on the stock account, in part $2).$

c$)$ What is the total amount of funds saved at retirement $($i$.$e$.,$ How much was saved over the $30-$

years$)?$

d$)$ Based on the total saved, how much can you withdraw each month from your account,

assuming a $25-$year withdrawal period?