How much should you pay

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Reference no: EM133039011

Questions -

Q1. How much interest is earned in the fifth year on a $1,000 deposit that earns 7 percent interest compounded annually?

a. $80.14

b. $91.75

c. $85.75

d. $70.00

Q2. How much should you pay for a $1,000 bond with 10 percent coupon, semi-annual payments, and five years to maturity if the interest rate is 10 percent?

a. $926.40

b. $1,000.00

c. $981.40

d. $927.90

Reference no: EM133039011

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