What is the present value of your bond

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1. The current interest rates are at 8.50%. The bond you’re holding pays you $45 semi-annually for the next ten years. What is the present value of your bond, which has a maturity value of $1,000?

2. Your uncle Harold recently inherited $100,000 and he is 75 years old. He’d like to see how much money she can take annually from the investment if it earns 8% (annually). Based upon his family genes, he thinks she will likely live to 90 years old. How much can he take from this investment annually if her estimates are correct?

Reference no: EM131992245

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