Your goal is to accumulate $1,000,000 when you retire, which is forty years from now.  If you can earn 8% per year on your investment, what is your annual contribution in equal amount? 

Your goal is to accumulate $1,000,000 when you retire, which is forty years from now.  If you can earn 8% per year on your investment, what is your annual contribution in equal amount? 

Given the following interest rates: tR1 = 1.1% = 0.011 tR2 = 1.4% = 0.014 tR3 = 1.9% = 0.019 tR4 = 2.4% = 0.024 a.  Calculate the short-term interest rate one year from now. b.  Calculate the short-term interest rate two years from now. c.  What is the interest rate on a three-year investment? 

Discuss one similarity and one difference between a banker’s acceptance and a negotiable certificate of deposit. 

From Question 8, if an investor believes that the short-term interest rate one year from now is 1.8% and has the following two options:  Option A: 1 2-year investment, one investment with a maturity of two years Option B: 2 1-year investments, two investments with a maturity of one year Which option is better?  Explain.  

Discuss one similarity and one difference between a banker’s acceptance and a negotiable certificate of deposit. 

A resident of Mississippi who is in a 30% tax bracket is provided with the rate of return on the following two investments: 30-year AA corporate bond = 6% 30-year AA bond issued by Oktibbeha County in the state of Mississippi = 5% Which investment is better?  Explain. 

From Question 8, if an investor believes that the short-term interest rate one year from now is 1.8% and has the following two options:  Option A: 1 2-year investment, one investment with a maturity of two years Option B: 2 1-year investments, two investments with a maturity of one year Which option is better?  Explain.  

A resident of Mississippi who is in a 30% tax bracket is provided with the rate of return on the following two investments: 30-year AA corporate bond = 6% 30-year AA bond issued by Oktibbeha County in the state of Mississippi = 5% Which investment is better?  Explain. 

What is a convertible bond?  Why is a convertible bond good for the lender?