1. Your firm is issuing 22-year zero coupon bonds with a 5% yield and pays annually. The goal is to raise $5,000,000. What is your company’s total repayment 22 years from now?
14,626.30
14,626,303.60
341.85
14,627,000.00
None of the above.
2. You can earn 15% compounded quarterly and you need to have $100,000 in 20 years. How much must you deposit next year to reach goal?
6,094.02
1,640,952.50
7,026.53
6,110.03
None of the above.