1. Your grandfather is 70 years of age and has a life expectancy of 18 more years. He wishes to invest $15,000 in an annuity that will make a level payment at the end of each year until his death. If the expected interest rate is 7.5%, what income can your grandfather expect to receive each year? (round to the nearest whole dollar)
2. The future value of $1,900 deposited a year for 5 years earning 8 percent would be approximately?
3. What’s the current yield of a 4.05 percent coupon corporate bond quoted at a price of 101.63? (Round your answer to 2 decimal places.)
Current yield %