Monthly compounding on college savings plan

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1. IBM issues a bond that has a current selling price of 87.00% of its par value which is the standard $1,000 The bond had a coupon interest rate of 4.30% interest is paid annually the bond will mature at the end of 18 years what is the yield to maturity (YTM) on this IBM bond?

2. Mark is planning for his daughter's education. She will be attending a college in 9 years. The college expenses are estimated to be $60,000 for a 4-year college. If he can earn 9 percent APR with monthly compounding on a college savings plan, how much does he have to invest every month for the next 9 years? Round it to two decimal places.

Reference no: EM131977694

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