1-Consider a $350 investment whose future values after being
invested at 11% is $7,218. For how many
years was the amount invested? ____________.
2-Michel is an investor who is thinking of purchasing a new
house after 10 years. He has $100,000 but needs $250,000. At what
rate of return should he invest his money to be able to buy the
house?
3- The future value of $4,500 invested at 8% interest for 13
years is: ____________.
4- If a bond is making semiannual coupon payments of $40, what
is the coupon rate of that bond?
____________.
5-The current price of a zero-coupon bond with a YTM of 8% and
12 years to maturity is
____________.
6-You deposit $6,000 in a Bank. If your account pays 8% for the
first three years, 11% for all consecutive
years, how much will you have after 10 years? ____________.
7-Say you own an asset that has a total return of 12.5 percent.
If the inflation rate is 4.15 percent, what is your exact real
return? ____________.
1-Consider a $350 investment whose future values after being invested at 11% is $7,218. For how many years was the amoun
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