The bond costs $900 and will pay you $1000 when it matures in 10 years! The current yield is 5%. What is the YTM of this bond? What is the appropriate price of the bond, if the current YTM on similar bonds is 4.4%?
If you save $500 per month for 45 years, how much can you accumulate? Assume monthly compounding and that you can earn 9%, on average, on your investments.
If you believe you need $3 million to retire, how long will it take you to achieve this milestone if you save $5,000 per year at a 9% rate of return?