NOTE: Do not round until the final answer. List all final answers with 2 decimal points and proper rounding. Show your work for partial credit.

1. If you want to accumulate $30,000 at the end of 5 years, how much do you need to invest today if the interest rate is 6%?

2. If you invest $10,000 today and earn 4% per year, what will be your account value at the end of 10 years?

3. What is the price of a 0 coupon discount bond if the yield to maturity is 5%, the face value is $1000, and there are 7 years to maturity?

4. What is the price of a bond with a face value of $1000, an annual coupon payment of $60, a yield to maturity of 5%, and 2 years until maturity?

5. What is the current yield of a bond with a face value of $1000, a price of $1133, a coupon payment of $70, and a yield to maturity of 4%? (answer as a percent with 2 decimal places)

6. Two bonds have identical yields, coupons, and prices, except that bond A matures in 5 years and bond B matures in 20 years.

a. If interest rates rise, what would happen to the prices of the bonds?

b. Which price would change more?

NOTE: Do not round until the final answer. List all final answers with 2 decimal points and proper rounding. Show your work for partial credit. 1. If you want to accumulate $30,000 at the end of 5 years, how much do you need to invest today if the interest rate is 6%? 2. If you invest $10,000 today and earn 4% per year, what will be your account value at the end of 10 years? what is the price of a 0 coupon discount bond if the yield to maturity is 5%, the face value is $1000, and there are 7 years to maturity? 3, 4. What is the price of a bond with a face value of $1000, an annual coupon payment of 60, a yield to maturity of 5%, and 2 years until maturity? What is the current yield of a bond with a face value of $1000, a price of $1133, a coupon payment of $70, and a yield to maturity of4%? (answer as a percent with 2 decimal places) 5. Two bonds have identical yields, coupons, and prices, except that bond A matures in 5 years and bond B matures in 20 years. 6. a. If interest rates rise, what would happen to the prices of the bonds? b. Which price would change more