a). You want to buy some bonds that will have a value of $1,000 at the end of 4 years. The bonds pay 7.50 percent interest, how much should you pay for them today? (If you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to the nearest penny.) Present value of bond   $ _____________   b). You have just inherited $570,000. You plan to save this money and continue to live off the money that you are earning in your current job. If the $570,000 is everything that you have other than an old car and some beat-up furniture, and you can invest the money in a bond that pays 4.1 percent interest annually, how long will it be before you are a millionaire? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to two decimal places, e.g. 8.72%.) Number of years   _________________

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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a).

You want to buy some bonds that will have a value of $1,000 at the end of 4 years. The bonds pay 7.50 percent interest, how much should you pay for them today? (If you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to the nearest penny.)

Present value of bond   $
_____________

 

b). You have just inherited $570,000. You plan to save this money and continue to live off the money that you are earning in your current job. If the $570,000 is everything that you have other than an old car and some beat-up furniture, and you can invest the money in a bond that pays 4.1 percent interest annually, how long will it be before you are a millionaire? (If you solve this problem with algebra round intermediate calculations to 6 decimal places, in all cases round your final answer to two decimal places, e.g. 8.72%.)

Number of years  
_________________
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