You buy an 8% annual coupon bond that has a 15 year maturity and a required return of 12%. The par value is $1,000. You sell the bond five years later when the required return is 10%. What is the ending price (sell) of the bond?
$847.88
$877.11
$1,000
$239.39
$941.07
$1,047.47
After doing some budgeting, you estimate you'll need to save $25,000 for the first year of graduate school. You plan to save $450 per month in an account that earns 5% compounded monthly. How long will it take you to save the money you need?
3.56 years
50.04 years
3.96 years
46.32 years
4.17 years
3.86 years