Ugenheim inc offers a 875 percent coupon bond with annual


1. Gugenheim, Inc. offers a 8.75 percent coupon bond with annual payments. The yield to maturity is 4.775 percent and the maturity date is 9 years. What is the market price of a $1,000 face value bond?

2. Max, 22, just started working full-time and plans to deposit $3,000 annually into an IRA earning 6 percent interest. How much would he have in 20 years? 30 years? 40 years? If he increased his investment return to 9 percent, how much would he have after the same three time period?

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Financial Management: Ugenheim inc offers a 875 percent coupon bond with annual
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