What are these deposits worth in today dollars

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1. Interest on a certain issue of bonds is paid annually with a coupon rate of 8%. The bonds have par value of $1000. The yield to maturity is 9%. What is the current market price of these bonds? The bonds will mature in 5 years

2. You plan on depositing $10,000 a year in real terms into your investment account for the next four years. The relevant nominal discount rate is 7.5% and the inflation rate is 4.2%. What are these deposits worth in today's dollars? Please show all the calculations by which you came up with the final answer.

Reference no: EM131996158

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