1. You invested in a $5,000 bond in 2012 with a coupon rate of 6%. What will be its value in 2018 if the required rate of return is now 8%
2. What is the present value of $10 000 to be received 20 years from now, if the principal is invested at 8% per year, compounded annually?
3. You found an investment that offers you $20,000 in 5 years. You want 6 percent return on your investment, compounded monthly. How much you are willing to pay for this investment?