You plan to invest $1,400 at the end of year 1, $2,300 at the end of year 2, and $3,700 at the end of year 3. If you can earn 4.00 %, compounded annually, how much you will have in your account by the end of the 3rd year. (Round your answer to the nearest hundredth; two decimal places)

In a certain year, if your return on investment is 4.40% and the inflation rate during that same year is 1.20%, what is your real rate of return?

You purchased a stock at a price of $25. A year later the stock is worth $34, and during the year it paid $3.0 in dividends. What was the rate of return you earned on this investment?

2. An investment of $425 is made at a nominal rate of 4% per year, with interest compounded monthly. How long will it take that investment to double?

a) Write the equation that you need to solve in order to answer this problem.

b) Show how to solve your equation TWO ways: graphically and symbolically. To solve graphically, clearly sketch the window you saw, give the dimensions of the window, label your curves, and give the coordinates of any point(s) of importance.

When solving symbolically, I want you to first find the EXACT answer, and then give an appropriate decimal approximation.

You may use natural logs and/or common logs, but logs of no other bases. Be sure the answer to the question asked is stated in a short sentence at the end of your work.

An investor in Treasury securities expects in ation to be 2.5 % in Year 1, 3.2 % in Year
2, and 3.6 % each year thereafter. Assume that the real risk free rate is 2.75 % and that this rate
will remain constant. Three-year treasury securities yield 6.25 %, while 5-year Treasury securities
yield 6.8 %. What is the dierence in the maturity risk premiums (MRPs) on the two securities;
that is MRP5 ?MRP2

Determine the discounted value of an annuity of $380 at the end of each half-year for 3 years at a) j2 = 8%, b) j2 = 6%, c) j2 = 10.38%.

What is the YTM of a 10 year, 6% annual coupon bond with a price of $980? (Please answer as a percentage with no percent sign, showing 4 significant digits.)

A stock provides dividend of $1 at the end of the first, second, and third year, its spot price is $30 and the risk-free rate for all maturities (with continuous compounding) is 10%.

What is the four year forward price?

What is the value of this forward contract two years later if the forward price at that time is $40?

In a discounted note a company borrowed $3,000 for one year at an interest rate of 3.5%. What was the effective rate of interest?

A. 3.6%

B. 4.0%

C. neither A or B