In: Finance
You would like to contribute $50,000 towards your grandchild’s college education 15 years from now. How much money must you set aside today for this purpose if you believe you can earn 7% per annum on your investment? (Show calculation)
You are considering purchasing a 15-year 8% unsecured bond at a price of $960:
How much is the bond’s face value?
How much is the bond’s coupon?
What is the bond’s current yield?