You purchased a bond at a price of $2,100. In 30 years when the bond matures, the bond will be worth $15,000. It is exactly 22 years after you purchased the bond and you can sell the bond today for $11,100. If you hold the bond until it matures, what annual rate of return will you earn from today?

2. Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 4.9%, how much is the bond worth today: a) with annual compounding b) with monthly compounding

Five years ago your grandfather purchased for you a 30-year $1,000 bond with a coupon rate of 11 percent. You now wish to sell the bond and read that yields are 9 percent. What price should you receive for the bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

5.

A bond with a face value of ​$5,000 pays quarterly interest of 4 percent each period. Twenty interest payments remain before the bond matures. How much would you be willing to pay for this bond today if the next interest payment is due now and you want to earn 8 percent compounded quarterly on your​ money?

2 Refer back to the Series EE savings bonds we discussed at the very beginning of the chapter. a. Assuming you purchased a $50 face value bond, what is the exact rate of return you would earn if you held the bond for 20 years until it doubled in value? b. If you purchased a $50 face value bond in 2019 at the then current interest rate of .10 percent per year, how much would the bond be worth in 2029? c. In 2029, instead of cashing the bond in for its then current value, you decide to hold the bond until it doubles in face value in 2039. What rate of return will you earn over the last 10 years? Input area: a. Original value Number of years Future value b. Interest rate Number of years c. Number of years Output area: $50 a. Rate of return b. Future value C. Rate of return 20 (Use cells A6 to C11 from the given information to complete this question. Your answer for part b should be a positive value.) $100 0.10% 10

You plan to invest in securities that pay 11.2%, compounded annually. If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20? a. 5.68 b. 4.60 c. 5.85 d. 5.63 e. 6.36

Fifteen years ago, your grandfather purchased for you a 20-year $1,000 bond with a coupon rate of 10 percent. You now wish to sell the bond and read that yields are 9 percent. What price should you receive for the bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $

Fifteen years ago your grandfather purchased for you a 30-year $1,000 bond with a coupon rate of 10 percent. You now wish to sell the bond and read that yields are 8 percent. What price should you receive for the bond? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

Mansukh