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. 

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. 

If you invest $1,000 for 10 years earning 7% per year, calculate the amount of money that you will have. 

If you invest $1,000 for 10 years earning 7% per year, calculate the amount of money that you will have. 

Company X has a bond outstanding with four years to maturity and an annual coupon rate of 4%.  If the yield to maturity (market rate of interest) is 3%, what is the price of the bond?  The face value of the bond is $1,000. 

From Question 8, calculate the duration. 

Company X has a bond outstanding with four years to maturity and an annual coupon rate of 4%.  If the yield to maturity (market rate of interest) is 3%, what is the price of the bond?  The face value of the bond is $1,000. 

If you invest $1,000 annually for 10 years earning 7% per year, calculate the amount of money that you will have. 

From Question 8, if the market rate of interest has increased from 3% to 5%, calculate the bond price elasticity. 

If you invest $1,000 annually for 10 years earning 7% per year, calculate the amount of money that you will have.