1. Applebee sold an issue of 30-year, $1000-par bond, with a coupon rate of 8.80% and semi-annual payment. The bond was sold at par. Now it is 5 years later and the current market rate of interest is 8.00%. What is the current market price of the bond?
2. You saving up to buy a car. You plan on making your first savings deposit one year from today, and then making deposits for the following 3 years. These are the amounts you plan to save at the end of each year:
Year Projected Savings Amount
1 $6,000
2 $6,000
3 $7,000
4 $7,000
You expect to earn an annual rate of 6% per year throughout. What amount will you have available at the end, at time 4, when you will buy the car?
please show how to do it on the financial calculator