You plan to retire 31 years from now. You expect that you will live 25 years after retiring. You want to have enough money upon reaching retirement age to withdraw $150,000 from the account at the beginning of each year you expect to live, and yet still have $2,700,000 left in the account at the time of your expected death (56 years from now). You plan to accumulate the retirement fund by making equal annual deposits at the end of each year for the next 31 years. You expect that you will be able to earn 13% per year on your deposits. However, you only expect to earn 9% per year on your investment after you retire since you will choose to place the money in less risky investments. What equal annual deposits must you make each year to reach your retirement goal?

Question 18 options:

	$5,110.58
	$5,774.96
	$4,832.74
	$4,276.76
	$6,521.89

Yes They May, Inc. has a bond issue outstanding with a $1,000 par value and a maturity of 17 years. The bonds have an annual coupon rate of 8.0% with semi-annual coupon payments. The current market price for the bonds is $967. The bonds may be called in 6 years for 108.0% of par. What is the quoted annual yield-to-maturity for the bonds?

Question 19 options:

	8.37%
	4.18%
	8.72%
	9.75%
	11.36%

Again, Inc. bonds have a par value of $1,000, a 25 year maturity, and an annual coupon rate of 16.0% with annual coupon payments. The bonds are currently selling for $873. The bonds may be called in 4 years for 116.0% of par. What quoted annual rate of return do you expect to earn if you buy the bonds and company calls them when possible?

Question 20 options:

	18.37%
	24.10%
	26.49%
	20.01%
	16.39%

Forever, Inc.'s preferred stock has a par value of $700 and a dividend equal to 16.0% of the par value. The stock is currently selling for $542.00. What discount rate is being used to value the stock?

Question 21 options:

	19.24%
	21.74%
	22.71%
	20.66%
	17.44%

You are considering buying common stock in Grow On, Inc. You have projected that the next dividend the company will pay will equal $3.90 and that dividends will grow at a rate of 6.0% per year thereafter. If you would want an annual return of 25.0% to invest in this stock, what is the most you should pay for the stock now?

Question 22 options:

	$21.76
	$20.53
	$15.60
	$16.54
	$22.43