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write on paper hand writing plz Q2) Assume that 4 years from now you will need $1000. Your bank compounds interest at an 8% annual
write on paper hand writing plz
Q2) Assume that 4 years from now you will need $1000. Your bank compounds interest at an 8% annual rate. (2 marks) a. How much must you deposit to have a balance of $1000 at year 4? b. If you want to make equal payments at the end of year 1 through year 4 to accumulate $1000, how large must each of the 4 payments be? c. Suppose you can deposit only $186.29 each at the end of year 1 through 4, but you still need $1000, at the end of year 4. What interest rate, with annual compounding is required to achieve your goal? (3) A 10 year, 12% semiannual coupon bond with a par value of $1000 may be called in 4 years at a call price of $1060. The bond sells for $1100. (1.5 marks) a. What is the bond's yield to maturity? b. What is the bond's current yield? What is the bond's yield to call? c Step by Step Solution
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