A bond has a coupon rate of 9% p.a. The coupons are paid every 6 months. The

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A bond has a coupon rate of 9% p.a. The coupons are paid every 6 months. The bond has a $1,000 face value and is priced at par value. The bond has 16 years to maturity. If interest rates suddenly rise by 3.00% p.a., what is the change in the price of the Bond?

b. Budvar-brewery company expects to receive the following cash flows: $2,100, $2,300, $2,500, $3,400 at the end of years 13, 14, 15, 16. If the interest rate is 16% per annum, compounded annually, what is the total present value of these cash flows?

c. Bonds were issued 9 years ago with a 14 -year maturity. The issue has a coupon rate of 12.0% p.a. Coupons are paid every 6 months. If the YTM on the issue is currently 9.0% p.a. calculate the price of these bonds assuming a face value of $1,000.

d. You have a credit card loan of $17,600 that you plan to make monthly repayments of $2,800. How long will it take for your credit card loan to be paid off if the credit card company charges 2.6% interest per month?

e. What is the value at date t = 7 of a perpetual stream of $4,100 payments that begin at t = 19 if the interest rate is 8.50% p.a.? Each payment occurs at the end of the year.

f. How much do you need to have in your retirement savings account if upon retirement you plan to spend $17,000 at the end of every month over a 32-year period? Assume an interest rate of 6.25%p.a.