Reference no: EM132843757
problem 1) J&J Manufacturing just issued a bond with a $1,000 face value and a coupon rate of 7%. If the bond has a life of 30 years, pays annual coupons, and the yield to maturity is 6.8%, what will the bond sell for?
problem 2) A corporate bond is quoted at a current price of 101.387. What is the market price of a bond with a $1,000 face value?
problem 3) You plan on withdrawing monthly payments for the next ten years and have deposited $100,000 in an account. If the rate of return is 8% compounded monthly, determine the value of the monthly withdrawals
problem 4) Starting today, Stephen is going to contribute $200 on the first of each month to his retirement account. His employer will contribute an additional 50% of the amount Stephen contributes. If both Stephen and his employer continue and he can earn a monthly rate of 0.75%, how much will Stephen have in his retirement account 40 years from now?
problem 5) You just borrowed $12,750 from the bank to use in your business. The loan terms require you to pay the interest annually with the entire principle due in six years. The interest rate is 8.95%. How much will you pay to the bank in year five of the loan?