a. CVC Inc.'s bonds mature in 7 years, have a par value of $1,000, and a coupon rate of 8% paid semi-annually. The market interest rate for the bonds is 9%. What is the expected price of the bond?
a. $1,084.81 b. $948.89 c. $969.96 d. $994.21 e. $944.30
b. You plan to retire in 40 years. If you deposit $500 into your investment account at the end of every year during the 40-year period, what is the account balance at the time when you retire? The account carries an interest rate of 3%.
a. $37,671.87
b. $37,682.65
c. $37,700.63
d. $37,690.87