Question: 2. You want to go to grad school 3 years from now, and you can save $5,000 per year, beginning one year from today. You


2. You want to go to grad school 3 years from now, and you can save $5,000 per year, beginning one year from today. You plan to deposit the funds in a mutual fund which you expect to return 9% per year. Under these conditions, how much will you have just after you make the 3rd deposit, 3 years from now? $16,390.50 5. Bauer Inc's bonds currently sell for $1,275 and have a par value of $1,000. They pay a $120 annual coupon and have a 20 -year maturity, but they can be called in 5 years at $1,120. What is their yield to maturity (YTM)? 8.99\% 7. Highfield Inc's bonds currently sell for $1,100 and have a par value of $1,000. They pay a $80 annual coupon and have a 15 -year maturity, but they can be called in 5 years at $1,080. What is their yield to call (YTC)? 6.96%
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