Calculate the modified duration of two-year corporate loan

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1. Calculate the modified duration of a two-year corporate loan paying 6 percent interest annually. The $40,000,000 loan is 100 percent amortizing, and the current yield is 9 percent annually.

2. Your employer offers a 401(k) plan with a 43% match, and you set a goal of retiring in 30 years with an amount of money which has the same buying power that 1.6 million dollars has today. If the account earns an annual interest rate of 1.6% and the expected annual rate of inflation is 1.6%, how much should you contribute each month to the 401(k)?

Reference no: EM131933558

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