What is the yield to maturity (YTM) of a 20-year, U.S. zero-coupon bond selling for $600 U.S. zero-coupon bonds have semi-annual compounding and a face value of $1,000.
If an investor puts $5,000 per year, starting at the end of the first year, in an annually compounded savings account earning 5% and ends up accumulating $200,000, how many years did it take the investor? I am borrowing $500,000 for a 15-year mortgage.
The annual rate of interest is 5% (compounded monthly). What would my monthly mortgage payments be? A recent television commercial made the statement that if a person invests $750 at the beginning of each month for 35 years, they could have $1,000,000 for retirement.
Assuming monthly compounding, what annual interest rate is implied in this statement? (A Challenge!) Use the Solver add-in to construct a spreadsheet that calculates the minimum number of coins required to make up a given dollar amount.
For example to make up S2.50 the least number of coins required is 2 (a $2 and a 50c coin).
Recall that the available coin denominations are 5c, 10c, 20c, 50c, $1 and $2. Test your spreadsheet on the amount $6.65.