Question:
1. Jared buys a $12666 par value bond with monthly interest payments. If the bond's coupon rate is 4.1% and the current yield is 6.7%, how much did Jared spend on the bond?
Round your answer to the nearest dollar (whole number).
2. Karen spends $13666 on a bond with monthly interest payments. If the bond's coupon rate is 6.6% and the current yield is 5.4%, what is the bond's par value?
Round your answer to the nearest dollar (whole number).
3. Pat purchases a $10868 par value bond for $9744. If the coupon rate is 7.2% and interest payments are made monthly, what is Pat's current yield?
Round your answer to the nearest tenth of a percent (tenth place).
4. You got a job for a company with a starting annual salary of $54652. Your contract stipulates that your salary will increase by 1.1% after each year on the job (so, for example, during your second year on the job your annual salary was 1.1% more than $54652).
You also decided to save for retirement by depositing $8594 into a retirement account every year.
Suppose that 11 years have elapsed. What percent of your yearly salary will you be you depositing into your retirement account the following year?
Round your answer to the nearest tenth of a percent (tenth place).