Question: a) Starting from today, every month you save $400 into a bank account which earns interest at annual rate of 3.8%. How much money do

a) Starting from today, every month you save $400 into a bank account which earns interest at annual rate of 3.8%.

How much money do you have in the account at the end of 3 years? (Keep your answer to 2 decimal places, e.g. xx.12.)

b) A debt of $25,000 is to be amortized over n=10 years at r =8.9% annual interest rate.

What value of semi-annual payments will achieve this?

(Keep your answer to 2 decimal places, e.g. 98.12.)

c) Suppose you have a debt of $48,000, and you budget $2,112 for semi-annual payment. Interest rate is 6.9% per year.

How long (in years) will the debt be completely repaid?

d) Consider two 5-year bonds: one has an 7% coupon rate and sells for $98; the other has an 8% coupon rate and sells for $107. What is the price of a 5-year zero coupon bond? (Assume that coupons are paid annually, and the face values of all the bonds are $100.)

Anyone can help me with this question with workings, I am really stuck, Will vote up if anyone can show me how to do.

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