Question
In: Finance
Based on the number of years until your retirement, calculate the monthly savings required to build...
Based on the number of years until your retirement, calculate the monthly savings required to build a portfolio of $500,000. Assume you are starting with zero savings, can earn 6 percent a year, and that you start saving on the first of each month. What if you could earn 9 percent a year but wanted to save $750,000 - what would you need to deposit into savings monthly? My age is 48 and I will retire at 67.
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Create an Excel spreadsheet that projects your savings balances every year until retirement, and the income you can generate in retirement from your savings.
Create an Excel spreadsheet that projects your savings
balances every year until retirement, and the income you can
generate in retirement from your savings.Include columns for 1. years; 2. savings balance; 3. investment
returns; 4. annual new savings (investment) from your salary. Note
that each year's balance equals the prior year's balance plus
investment returns, plus additional savings. See below:Interest Rate5.00%Annual Savings6,000.00YearBalanceReturnsAnnual Savings2020500.0025.006,000.0020216,525.00326.256,000.00202212,851.25642.566,000.00::[Retirement Year]770,734.57Retirement Annuity50,137.39
To calculate the number of years until maturity, assume that it is currently May 2013. Rate...
To calculate the number of years until maturity, assume that it
is currently May 2013.
Rate
Maturity Mo/Yr
Bid
Asked
Chg
Ask Yield
??
May 21
103.5540
103.6422
+.3093
2.449
5.524
May 26
104.5030
104.6487
+.4365
??
6.193
May 36
??
??
+.5483
4.151
* yes i know it says May 36. that's how it is worded in the
problem.
In the above table, find the Treasury bond that matures in May
2021. What is the coupon rate for this...
To calculate the number of years until maturity, assume that it is currently January 15, 2019....
To calculate the number of years until maturity, assume that it
is currently January 15, 2019. All of the bonds have a $2000 par
value and pay semiannual coupons.
Company(Ticket) Coupon Maturity Last price Last Yield
EST$Vol
Xenon, Inc 5.400 Jan 15, 2024, 96.153 ?? 57.362
Kenny Corp 7.125 Jan 15, 2026 ?? 6.02 48.941
Williams Co ?? Jan 15, 2028, 95.165 6.85 43.802
31. What is the yield to maturity for the bond issued by Xenon,
Inc..?
32....
To calculate the number of years until maturity, assume that it is currently January 15, 2013....
To calculate the number of years until maturity, assume that it
is currently January 15, 2013.
Company
(Ticker)
Coupon
Maturity
Last
Price
Last
Yield
EST $ Vol
(000’s)
Xenon, Inc. (XIC)
5.400
Jan 15, 2020
94.183
??
57,362
Kenny Corp. (KCC)
7.125
Jan 15, 2017
??
6.02
48,941
Williams Co. (WICO)
??
Jan 15, 2026
94.735
6.85
43,802
Required:
What is the yield to maturity for the bond issued by...
Your employer offers a number of benefits including retirement savings. Five percent of your annual salary...
Your employer offers a number of benefits including retirement
savings. Five percent of your annual salary will go towards your
retirement fund and the employer will match that amount. Your
retirement fund offers three different packages:
1. Invest in T-Bills
2. Invest in small cap stocks
3. Invest in the large cap stocks
Discuss the risk-return profile of each option. Which
one would you choose?
Income Needed During Retirement $90,000 Number of Years in Retirement 30 Number of Year Before Retirement...
Income Needed During Retirement $90,000 Number of Years in
Retirement 30 Number of Year Before Retirement 20 Rate of Return
During Retirement 4.50% Rate of Return Before Retirement 7.50%
Inflation Before and During Retirement 3% A. How much should your
client save per year in order to meet their required funds for
retirement? Calculate for both an annuity and annuity due.
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
You find the following corporate bond quotes. To calculate the
number of years until maturity, assume that it is currently January
15, 2019. The bonds have a par value of $2,000 and semiannual
coupons.
Company
(Ticker)
Coupon
Maturity
Last
Price
Last
Yield
EST $ Vol
(000’s)
Xenon, Inc. (XIC)
6.300
Jan 15, 2032
94.273
??
57,371
Kenny Corp. (KCC)
7.210
Jan 15, 2031
??
5.32
48,950
Williams Co. (WICO)
??
Jan...
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume...
You find the following Treasury bond quotes. To calculate the
number of years until maturity, assume that it is currently May
2019 and the bond has a par value of $1,000.
Rate
Maturity
Mo/Yr
Bid
Asked
Chg
Ask
Yld
??
May 26
103.5423
103.5301
+.3261
5.939
6.102
May 31
104.4913
104.6370
+.4257
??
6.148
May 41
??
??
+.5366
3.971
a.
In...
You find the following Treasury bond quotes. To calculate the number of years until maturity, assume...
You find the following Treasury bond quotes. To calculate the
number of years until maturity, assume that it is currently May
2016. The bonds have a par value of $1,000.
Rate
Maturity
Mo/Yr
Bid
Asked
Chg
Ask
Yld
??
May
26
103.5488
103.6370
+.3041
2.369
5.324
May 31
104.4978
104.6435
+.4317
??
6.173
May 41
??
??
+.5431
4.071
In the above table, find the Treasury bond that matures in May
2026. What is the coupon rate for this bond?...
You find the following corporate bond quotes. To calculate the number of years until maturity, assume...
You find the following corporate bond quotes. To calculate the
number of years until maturity, assume that it is currently January
15, 2016. The bonds have a par value of $2,000.
Company
(Ticker)
Coupon
Maturity
Last
Price
Last
Yield
EST $
Vol
(000’s)
Xenon, Inc.
(XIC)
6.200
Jan 15, 2030
94.279
??
57,370
Kenny Corp. (KCC)
7.200
Jan 15,
2027
??
6.18
48,949
Williams Co. (WICO)
??
Jan 15,
2034
94.815
7.00
43,810
What is the yield to maturity for...
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