• CORRECTLY SET UP THE PROBLEM;
• SHOW ALL INTERMEDIATE ALGEBRAIC STEPS (IF ANY ARE REQUIRED), AND;
• SHOW ALL INTERMEDIATE CALCULATION(S) PRIOR TO YOUR FINAL ANSWER.

ALL ANSWERS IN THE FORM OF A PERCENT

MUST BE CORRECTLY ROUNDED TO THE NEAREST .01%, AND;

ALL ANSWERS IN THE FORM OF A DOLLAR VALUE

MUST BE CORRECTLY ROUNDED TO THE NEAREST $.01

1.You would like to have $300,000 in your investment account in 20 years (that is, 20 years from today). You can earn 0.35% per month in your account. How much do you need to deposit on a monthly basis in order to reach your goal, if the first payment is made today?

2. A company issued 10-year bonds one year ago with a coupon rate of 3.6 percent. The bonds make semiannual coupon interest payments. If the YTM (yield to maturity) on these bonds is 4.7 percent, what is the current dollar price assuming a $1,000 par value?

3. Calculate the Net Present Value for the following cash flows.

The appropriate discount rate is 23 percent.

Year	Cash Flow
0	$19,000
1	$ 7,000
2	$11,000
3	$ 9,000