1. Suppose you invest $429.59 annually at the beginning of each year at 10% interest. After 50 years, how much would you investment be worth?
2. You just purchased a 15-year bond with an 12% annual coupon. The bond has a face value of $1,000 and a current yield of 10%. Assuming that the yield to maturity of 9.35% remains constant, what will be the price of the bond 2 years from now?
3. A MBS (mortgage backed security) issued by FNMA would have a slightly lower yield than a government bond with the same average maturity? True or False
Please Explain