1. Has an IRA with a current balance of $22,500. Ally plans to continue depositing into this account which earns 8%. After 40 years, what will the balance of IRA be?
2. What is the value of a $100 par value stock with a 3% coupon if investors require a 5% return?
3. What annual return would you be earning if you were able to purchase a $1000 par zero coupon bond for $625 that had 12 years until maturity?