1. A bond has a 10% coupon rate and a $100 face value. Coupon is paid every quarter, and the bond has 20 years to maturity. If investors require a 15% yield, what is the bond’s value?
2. If you start making $265 monthly contributions today and continue them for four years, what is their future value if the compounding rate is 9.75 percent APR? What is the present value of this annuity?
3. Joey realizes that he has charged too much on his credit card and has racked up $5,300 in debt. If he can pay $150 each month and the card charges 12 percent APR (compounded monthly), how long will it take him to pay off the debt?