Question

#29 Derek can deposit $11,000 on each birthday beginning with his 26th and ending with his 65th. What will the rate on the retirement account need to be for him to have $3,000,000 in it when he retires on his 65th birthday?

**Answer format:** Percentage Round to: 4
decimal places (Example: 9.2434%, % sign required. Will accept
decimal format rounded to 6 decimal places (ex: 0.092434))

#30 The market price of a semi-annual pay bond is $975.99. It has 22.00 years to maturity and a yield to maturity of 7.15%. What is the coupon rate?

**Answer format:** Percentage Round to: 0
decimal places (Example: 9%, % sign required. Will accept decimal
format rounded to 2 decimal places (ex: 0.09))

Answer #1

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Derek can deposit $11,000 on each birthday beginning with his
26th and ending with his 65th. What will the rate on the retirement
account need to be for him to have $3,000,000 in it when he retires
on his 65th birthday?
Submit
Answer format: Percentage Round to: 4
decimal places (Example: 9.2434%, % sign required. Will accept
decimal format rounded to 6 decimal places (ex: 0.092434))

Today is Derek’s 25th birthday. Derek has been advised that he
needs to have $2,928,661.00 in his retirement account the day he
turns 65. He estimates his retirement account will pay 5.00%
interest. Assume he chooses not to deposit anything today. Rather
he chooses to make annual deposits into the retirement account
starting on his 28.00th birthday and ending on his 65th birthday.
How much must those deposits be?
Submit
Answer format: Currency: Round to: 2
decimal places.
unanswered
not_submitted...

Derek can deposit $216.00 per month for the next 10 years into
an account at Bank A. The first deposit will be made next month.
Bank A pays 12.00% and compounds interest monthly. Derek can
deposit $2,432.00 per year for the next 10 years into an account at
Bank B. The first deposit will be made next year. Bank B compounds
interest annually. What rate must Bank B pay for Derek to have the
same amount in both accounts after...

Derek can deposit $267.00 per month for the next 10 years into
an account at Bank A. The first deposit will be made next month.
Bank A pays 12.00% and compounds interest monthly. Derek can
deposit $2,534.00 per year for the next 10 years into an account at
Bank B. The first deposit will be made next year. Bank B compounds
interest annually. What rate must Bank B pay for Derek to have the
same amount in both accounts after...

If Derek plans to deposit $10,169.00 into his retirement account
on each birthday beginning with his 26th and the account earns
9.00%, how long will it take him to accumulate $3,933,654.00?
Answer format: Number: Round to: 2 decimal
places.

Derek plans to retire on his 65th birthday. However, he plans to
work part-time until he turns 73.00. During these years of
part-time work, he will neither make deposits to nor take
withdrawals from his retirement account. Exactly one year after the
day he turns 73.0 when he fully retires, he will wants to have
$3,423,684.00 in his retirement account. He he will make
contributions to his retirement account from his 26th birthday to
his 65th birthday. To reach his...

The market price of a semi-annual pay bond is $984.54. It has
17.00 years to maturity and a coupon rate of 6.00%. Par value is
$1,000. What is the effective annual yield?
Answer format: Percentage Round to: 4
decimal places (Example: 9.2434%, % sign required. Will accept
decimal format rounded to 6 decimal places (ex: 0.092434))

#2
The market price of a 11.00-year STRIPS is $343.00 The yield to
maturity is ____%.
Submit
Answer format: Percentage Round to: -2
decimal places (Example: 0%, % sign required. Will accept decimal
format rounded to 0 decimal places (ex: 0))
unanswered
not_submitted
Attempts Remaining: Infinity
#3
A tax-exempt municipal bond has a yield to maturity of 5.17%. An
investor, who has a marginal tax rate of 34.00%, would prefer and
an otherwise identical taxable corporate bond if it had...

Derek plans to retire on his 65th birthday. However, he plans to
work part-time until he turns 70.00. During these years of
part-time work, he will neither make deposits to nor take
withdrawals from his retirement account. Exactly one year after the
day he turns 70.0 when he fully retires, he will wants to have
$3,142,214.00 in his retirement account. He he will make
contributions to his retirement account from his 26th birthday to
his 65th birthday. To reach his...

Derek currently has $11,714.00 in an account that pays 5.00%. He
will withdraw $5,458.00 every other year beginning next year until
he has taken 4.00 withdrawals. He will deposit $11714.0 every other
year beginning two years from today until he has made 4.0 deposits.
How much will be in the account 22.00 years from today?
Answer format: Currency: Round to: 2
decimal places.
Derek can deposit $294.00 per month for the next 10 years into
an account at Bank A....

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