Your company wants to raise

$9.5

million by issuing

30-year

zero-coupon bonds. If the yield to maturity on the bonds will be

7%

(annual compounded

APR),

what total face value amount of bonds must you issue?

years in retirement, how much can you withdraw every year in retirement (starting one year after retirement) so that you will just exhaust your savings with the

20th

withdrawal (assume your savings will continue to earn

10.0%

in retirement)?

d. If, instead, you decide to withdraw

$300,000

per year in retirement (again with the first withdrawal one year after retiring), how many years will it take until you exhaust your savings? (Use trial-and-error, a financial calculator: solve for "N", or Excel: function NPER)

e. Assuming the most you can afford to save is

$1,000

per year, but you want to retire with

$1,000,000

in your investment account, how high of a return do you need to earn on your investments? (Use trial-and-error, a financial calculator: solve for the interest rate, or Excel: function RATE)