1. Explain (theoretically) the relationships between current yield, bond price and the overall credit worthiness of a bond.
2. Springfield Nuclear Energy Inc. bonds are currently trading at ?$908.48. The bonds have a face value of ?$1,000?, a coupon rate of 4.5?% with coupons paid? annually, and they mature in 20 years. What is the yield to maturity of the? bonds?
3. If you wanted to retire with $4million and you are currently 30 years old, then at an interest rate of 17% what would your monthly payments be if you wanted to retire by 60 years old? (Assume interest compounds monthly).