Consider a bond issued at the beginning of 2017. It pays a coupon of 10 on October 30, and a coupon of 10 on Dec 31, together with the principal of 100 in December 31, 2017. It is now February 7th, 2017. The annual interest rate is r = 3.6% APR, continuous compounded.
What is the present value of the bond?
A. $112.24
B. $117.17
C. $125.20
D. $116.25
Suppose that at the end of each month you save $1,500, for three years, and at the end of the three years you will have $60,000. What is the annual interest rate if interest is composed monthly?
A. 0.59%
B. 2.48%
C. 7.12%
D. 50.16%
Suppose you are 20 years old and you just graduated. You plan to retire at 70 with a retirement fund that must to provide you a monthly payment of $3000 at the beginning of each month for 30 years. How much you have to save at the end of each month until retirement if r=4.8% APR?
A. $153.54
B. $251.86
C. $230.31
D. $229.39