What rate of interest was used in present value computation

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1. You have been told that you need $32,000 today for each $100,000 you want when you retire 28 years from now. What rate of interest was used in the present value computation? Assume interest is compounded annually.

4.15 percent

4.37 percent

4.29 percent

4.53 percent

4.58 percent

2. Explain the following terms, with examples, and explain who benefits from that

1. Callable bond 2. Puttable bond 3. Convertible bond

3. Explain the following terms with examples if there are exist.

1.Coupon 2.Coupon Rate 3.Frequency 4.Par/Principle 5.VTM

4. Which of the following interest rates will come closest to doubling invested money in five years?

A) 14% B) 15% C) 13% D) 16%

Reference no: EM131900719

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