What is the average annual rate of return

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1. Ten years ago PPO Co. issued bonds with a maturity of 15 years, a coupon rate of 8% paid semi-annually, and a par value of $1,000. Today, the market interest rate on these bonds is 8%. What is the expected price of the bonds today?

2. On your thirteenth birthday, you received $2,000 which you invested at 4.462 percent interest, compounded annually. Your investment is now worth $6,500. How old are you today?

3. 40 years ago, your mother invested $20,000. Today, that investment is worth $300,000. What is the average annual rate of return your mother earned on her investment?

Reference no: EM132006244

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