Caused increase in yield on municipal bonds

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1. Interpret the following statement made by Wall Street analysts and portfolio managers: “Although yields among bonds are related, today’s rumors of a tax cut caused an increase in the yield on municipal bonds, while the yield on corporate bonds declined.”

2. 7 years from now, you want to buy a new boat. You expect the boat to cost $7,000 in 7 years. You can earn 8% on your deposits. How much do you have to deposit today to have enough money to buy the boat 7 years from now? Enter your answer to 2 decimal places, for example 1002.79.

3. Suppose you just had a new addition to your family. If you put away $600 a year ($50 a month) in an investment earning 10% per year to use toward their college education or other training after high school, how much will you have after 18 years?

Reference no: EM132067169

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