1 . I now have $ 7 5 , 0 0 0 in the bank earning interest...

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Question:

1 .

I now have $

75, 000

in the bank earning interest of

0.82 %

per month. I need $

750, 000

to make a down payment on a house. I can save an addiAonal $

2, 500

per month. How long will it take me to accumulate the $

750, 000 ?

2 .

Sure Tea Company has issued

8 % 10 -

year semi

-

annual coupon bonds that are now selling at a yield to maturity of

11.5 % .

Aaer holding the bond for some periods, the bond price is $

827.22

now, what is the remaining maturity of these bonds?

3 .

What is the rate of return for an investor who pays $

1, 054.47

for a

3 -

year bond with an annual coupon payment of

6.5 %

and sells the bond

1

year later for $

1, 037.19 ?

Posted Date: May 10, 2024 01:21 AM

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1 . I now have $ 7 5 , 0 0 0 in the bank earning interest...

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