1. Suppose that today you buy a bond with an annual coupon rate of 8 percent for $1,060. The bond has 15 years to maturity. Assume par value of $1,000. Assume semiannual compounding periods. What rate of return do you expect to earn on your investment at the time of purchase?
2. It is assumed that there will be some sort of estate tax reform. Whether the estate tax is completely repealed or just revised with a higher exemption and lower tax rate, the question still remains “will there be a need for estate planning “, and if so, to what extent.