The bonds make semiannual payments

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1. You want to have $56,000 in your savings account 8 years from now, and you're prepared to make equal annual deposits into the account at the end of each year. Required: If the account pays 6.3 percent interest, what amount must you deposit each year?

$5,597.38

$3,528.01

$9,182.40

$3,527.98

$7,000.00

2. Grohl Co. issued 10-year bonds a year ago at a coupon rate of 9 percent. The bonds make semiannual payments. If the YTM on these bonds is 7 percent, what is the current bond price?

$1,088.17

$1,465.64

$713.21

$1,141.90

$1,131.90

Reference no: EM132055013

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