What is the present value of an ordinary annuity

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1. Watters Umbrella Corp. issued 21-year bonds two years ago at a coupon rate of 9.9 percent. The bonds make semiannual payments. If these bonds currently sell for 101 percent of par value, the YTM is ______percent?

2. What is the present value of an ordinary annuity paying $1550 each year for 15 years, with an interest rate of 6.6% compounded annually? (rounded to the nearest dollar)

3. You make $4,800 annual deposits into a retirement account that pays 10.5 percent interest compounded monthly. How large will your account balance be in 30 years?

Reference no: EM131870022

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