1. AB Builders, Inc. has outstanding bond issue with a face value of $1,000 and a market price of $974 and 12 years left
Posted: Thu May 19, 2022 6:21 am
1. AB Builders, Inc. has outstanding bond issue with a face
value of $1,000 and a market price of $974 and 12 years left to
maturity. The bonds pay interest annually and have a yield to
maturity of 4.03 percent. What is the coupon rate?
A. 3.75 percent
B. 4.20 percent
C. 4.25 percent
D. 7.50 percent
E. 8.40 percent
2. Janice plans to save $75 a month, starting her monthly
deposits today, for 20 years. Kate plans to save $80 a month for 20
years, starting her monthly deposits one month from today. Both
Janice and Kate expect to earn an average annual return of 5.5
percent, compounded monthly on their savings. At the end of the 20
years, Kate will have approximately ________ than
Janice.
A. $2,028.39 more
B. $2,066.67 less
C. $2,178.14 more
D. $2,066.67 more
E. $2,028.39 less
value of $1,000 and a market price of $974 and 12 years left to
maturity. The bonds pay interest annually and have a yield to
maturity of 4.03 percent. What is the coupon rate?
A. 3.75 percent
B. 4.20 percent
C. 4.25 percent
D. 7.50 percent
E. 8.40 percent
2. Janice plans to save $75 a month, starting her monthly
deposits today, for 20 years. Kate plans to save $80 a month for 20
years, starting her monthly deposits one month from today. Both
Janice and Kate expect to earn an average annual return of 5.5
percent, compounded monthly on their savings. At the end of the 20
years, Kate will have approximately ________ than
Janice.
A. $2,028.39 more
B. $2,066.67 less
C. $2,178.14 more
D. $2,066.67 more
E. $2,028.39 less