The annualized interest rate on three year security

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1. You wish to receive upon retirement $50,000 paid semiannually and expect to live 30 years after retirement. You will retire in 40 years. How much do you need to save each month to fund your retirement at an interest rate of 11%

2. A bond is currently priced at $970.22. The yield is 5% and it will mature in 7 years. If the bond makes semi-annual payments, what is the coupon rate?

3. Assume that as of today the annualized interest rate on a three year security is 8%, while the annualized interest rate on a two year security is 6%. Assuming that interest is compounded, use this information to find the one year forward rate two years from now.

A) 2.11%

B) 18.8%

C) 11.75%

D) 12.00%

E) 12.11%

Reference no: EM131878276

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