9. Consider an annuity. What is the payment amount per month if PV A 000, r = 6%, and for five years?

10. Will C go up or down if be if r increases?

11. You believe that you will need 8800,000 by the time you retire in 40 years. Assume an interest rate of 6% per year. How much will you need to contribute to your IRA (individual retirement account) each year?

12. Given the above facts, how much would you have to contribute if you assumed that the interest rate will be 9.7%?

13. What is the value of the bond if the bond is 6% bond, ten year bond, and the YTM is 8%? As in most bonds, coupons are paid semiannually.

14. What is the coupon of the bond. There is ten years outstanding on the bond, the pricing of the bond is $1,050, and the YT M is 8%? As in most bonds, coupons are paid semiannually.

15. What is the yield to maturity of the bond? There are five years outstanding on the bond, the pricing of the bond is $1,050, and the coupon is 6%? As in most bonds, coupons are paid semiannually.

16. Assume a project costs $5,000, and has cash flows of $2, 000 at the end of period 1, $2,000 at the end of period 2, and $3, 000 at the end of period 3, What is the payback?

17. Assume the same facts as above, but now assume that the discount rate is 14%.