Question: please help 08) (3.5 marks) Melisandre has a 2 year monthly pay annuity immediate whose payments grow geometrically at rate R per period. Her initial

please help 08) (3.5 marks) Melisandre has a 2 year monthly payplease help

08) (3.5 marks) Melisandre has a 2 year monthly pay annuity immediate whose payments grow geometrically at rate R per period. Her initial payment is $145.00 and the nominal annual interest rate is 4.80% compounded monthly. The future value of her annuity is $4187.96. What is R? A: 1.22910% B: 1.16885% C: 1.14475% D: 1.20500% E: 1.21705% 09) (3.5 marks) Shomiq pays $1572.50 for a 5 year bond with a 7.00% coupon rate. The current interest rate is 5.80% compounded monthly. What is the face value of the bond? A: $1800.00 B: $1600.00 C: $1400.00 D: $1700.00 E: $1500.00 010) (3.5 marks) Vlad owns a bond with a coupon rate of 2.00% and a face value of $90000. If the current interest rate is 5.60% compounded semi-annually and the price of the bond is $81165.68, how many years until the bond matures? A: 1.5 B: 3.0 C: 2.5 D: 1.0 E: 2.0

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!