Use the bond term's below to answer the question Maturity 8 years Coupon Rate 5% Face value
Question:
Use the bond term's below to answer the question
Maturity 8 years
Coupon Rate 5%
Face value $1,000
Annual Coupons
YTM 6%
Assuming the YTM remains constant throughout the bond's life, what is the bond's current yield between periods 4 and 5 ?
5.08% |
5.18% |
5.33% |
4.93% |
You plan on going to law school for 3 years starting in 4 years.
The cost of tuition for the first year will be $40,000
The cost of tuition for the second year will be $41,600
The cost of tuition for the third year will be $43,264
How much would you have to invest today in an account that earns 3.00% APR compounded annually) to exactly pay for your tuition?
$104,521 |
$101,477 |
$110,887 |
$107,256 |
$107,657 |
Use the bond term's below to answer the question
Maturity 6 years
Coupon Rate 3%
Face value $1,000
Annual Coupons
When you buy the bond the interest rate is 5%
Right after you buy the bond, the interest rate changes from 5.00% to 4.50% and remains there.
What is the price effect in year 5 ?
$4.27 |
$4.91 |
$5.16 |
$3.88 |
$4.69 |
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0134141084
11th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs