1. How long will it take $46,000 placed in a savings account at 10% interest to grow into $71,000?
2. A $5,000 bond with a coupon rate of 5.7% paid semiannually has eight years to maturity and a yield to maturity of 7.2%.If interest rates rise and the yield to maturity increases to 7.5%, what will happen to the price of the bond?
3.The Sisyphean Company has a bond outstanding with a face value of $ 1000 that reaches maturity in 15years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually.
Assuming the appropriate YTM on the Sisyphean bond is 9?%, then the price that this bond trades for will be closest?