1. Assume coupons are paid annually. Here are the prices of hree bonds with 10 years maturities.
Bond Coupons% Price %
5 88.00
7 107.00
10 138.00
2. What is the yield to maturity of each bond
At the end of each of the next 5 years, you will make a deposit into your bank. You expect the deposits to be as follows:
Year Amount
1 $500
2 $700
3 $800
4 $600
5 $600
If the interest rate you earn on deposits is 6%, how much money will you have in the bank 5 years from now? Enter you answer to 2 decimals,