A 5-year bond with a face value of $1000 has a coupon rate of 6%, with semiannual payments. What is the coupon payment for this bond per 6-month period?

Discounted Tires plans to save $10,866, $20,585, and $27,782 at the end of each year for Years 1 to 3, respectively. If it earns 5 percent on its savings, how much will the firm have saved at the end of Year 3?

Over the last year the inflation rate was 3.8 percent and the interest rate on US Treasury Bonds was slightly below 2 percent. As an investor in bonds

a. what would you expect to happen to interest rates?

b. using the three bond rules, in terms of prices, maturity, and coupon rates, what type of bonds should an investor purchase? Explain.

c. Which bond is more price sensitive, a zero coupon 20 year to maturity government issued bond or a 5 percent coupon AAA rated 20 year corporate bond? Explain why?

d. Which bond is more price sensitive, a 8 percent coupon bond that matures is 6 years or a 8 percent bond that matures in 4 years? Why?

Note: the concept of a bond’s duration allows bonds of different coupons and maturity dates to be compared in terms of price sensitivity.

How much money do you need to save each year to be a millionaire by the time you are 65 if you can earn an interest rate of 8% and you start saving when you were born? Please use two decimals rounded up.

What is $100 today, plus $100 at the end of 1 year, plus $200 at the end of 2 years, plus $300 at the end of 3 years, worth to you today, given a discount rate of 4%

What is $100 today, plus $100 at the end of 1 year, plus $200 at the end of 2 years, plus $300 at the end of 3 years, worth to you at the end of year 3, given a discount rate of 4%?

CBS agreed to pay $1,000M per year for nine years to retain the rights to the football games. The first payment will be made at the end of this year. If CBS has an opportunity interest rate of 12%, what is the value today of the total payments that CBS will make?

A company paid $150 in dividends and $500 in interest over the past year. The company increased retained earnings by $400 and had accounts payable of $690. Sales for the year were $16,000 and the tax rate was 30 percent. What was the company's EBIT?

Group of answer choices

$1,050

$1,286

$4,800

$3,750

$1,740

You are buying a car and will borrow $31,837 with a 5-year loan. The interest rate is 4.46%, what is your monthly payment?

A bond is in a risk class that pays 5% per year. The bond pays annual interest of $400 (and the first interest payment is one year from today) and will mature in 10 years at a value of $10,000. What is the price of the bond?

The current cost of graduate school tuition is $19,771 per year. The cost of tuition is rising at 7% per year. You plan to attend graduate school for 3 years starting 2 years from now. How much do you have to invest today if your savings account earns 4.74% APR compounded annually to just fund your tuition?