UJ 2. Free response. Answer the questions in the spaces provided. 1 points each for a tot A 30-Treasury security issued in 1994 has an annual coupon of 7.9299 and left until maturity. Coupons are...
UJ 2. Free response. Answer the questions in the spaces provided. 1 points each for a tot A 30-Treasury security issued in 1994 has an annual coupon of 7.9299 and left until maturity. Coupons are paid semi-annually. Suppose investors require yield of 2.42% on 5-year Treasury notes: 1. and has 5 years an annual Draw a cash flow diagram for $100 of face value of this bond from the perspective of an investor. 3.9-1 b. What price would an investor pay for this bond? Years Annual rate FV PMT PV 5 3.9。10 Suppose you have accumulated $500,000 in your 401(k) and have it invested in a mutual fund that charges a 0.20% fee. You are considering switching to a socially responsible mutuar fund that only invests in corporations that do not contribute to global warming Bur this fund has a 065% fee. Ifboth funds have an expected return of 6% per year, how murTessmoneywourd you have after 25 years, if you switched to the socially responsible fund? Assume annual compounding 2. PMT FV PV PV PMT FV I/Y
UJ 2. Free response. Answer the questions in the spaces provided. 1 points each for a tot A 30-Treasury security issued in 1994 has an annual coupon of 7.9299 and left until maturity. Coupons are paid semi-annually. Suppose investors require yield of 2.42% on 5-year Treasury notes: 1. and has 5 years an annual Draw a cash flow diagram for $100 of face value of this bond from the perspective of an investor. 3.9-1 b. What price would an investor pay for this bond? Years Annual rate FV PMT PV 5 3.9。10 Suppose you have accumulated $500,000 in your 401(k) and have it invested in a mutual fund that charges a 0.20% fee. You are considering switching to a socially responsible mutuar fund that only invests in corporations that do not contribute to global warming Bur this fund has a 065% fee. Ifboth funds have an expected return of 6% per year, how murTessmoneywourd you have after 25 years, if you switched to the socially responsible fund? Assume annual compounding 2. PMT FV PV PV PMT FV I/Y