What price should you consider paying for this bond

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Reference no: EM131336123

You are considering purchasing a 10% coupon bond that matures in 11 years. YTM on similar bonds with like risk characteristics currently yield 11%. What price should you consider paying for this bond?

You put $10,000 in a company 401K each year. The company matches this investment. You expect to earn 8% each year on this money and you work for the company for 25 years before you retire. How much money do you have at retirement?

You have decided that you need $3 million to retire in 35 years. How much money should you save each month if you can earn 9% on this money?

You purchase a rental house for $100,000 with 20% down. The rental income pays for all expenses and the mortgage for the entire time you own it. You sell it 18 years after you purchase it. Assuming real estate prices increase 3.5% per year, at what price did you sell this rental house?

Assuming you owe $45,000 on this house when you sell it, what is your gain on the house above?

What is your rate of return on your equity investment given this gain?

Reference no: EM131336123

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