1. Discuss the prices of premium bonds, discounted bonds, and par-value bonds as the maturities of those bonds decreases.
2. Each day, you deposit $4.65 into a bank account whose annual rate is 1.2% with daily compounding. How much interest will you have earned after 20 years?
3. A company buys a color printer that will cost $12,000 to buy, and last 5 years. It is assumed that it will require servicing costing $700 each year. What is the equivalent annual annuity of this deal, given a cost of capital of 12%?
-$3983
-2,629
-$4029
-$5493