1. Lydic Corporation has bonds on the market with 15.5 years to maturity, a YTM of 7.6 percent, a par value of $1,000, and a current price of $1,063. The bonds make semiannual payments. What must the coupon rate be on these bonds?
2. Jeans wants to have $100,000 in nine years. If she can earn 7% interest after taxes compounded semi-annually, how much should she invest today to achieve her goal?
3. When George was born 21 years ago, his grandfather made one $10,000 annual gift to a minors account. If the account has grown at 6% quarterly interest, how much is in the account today at age 21?