What is your realized yield on the bond

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Reference no: EM132000844

1. Suppose you purchased a ten year, 8% coupon code (annual coupon payment) at $980. Two years later, you decide to take a vacation and sell the bond to acquire the necessary funds. At the time you sell the bond, 8 year bonds with similar characteristics sell for yields 9%. What is your realized yield on the bond?

2. I’m starting out with $40,000 today and want to have $2,000,000 in 30 years when I retire. Assuming that I can earn 8% per year, how much must I deposit at the end of every year to reach my goal (round to the nearest dollar)?

Reference no: EM132000844

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