Author Question: If a bond is sold at par, the trade price is A) less than 1,000. B) more than 1,000. ... (Read 20 times)

altibaby · **on:** Jul 10, 2018

If a bond is sold at par, the trade price is

A)

less than 1,000.
B)

more than 1,000.
C)

equal to its coupon interest.
D)

equal to its face value.

Question 2

You know that regular tax-deferred investments are a popular investment choice for many people preparing for retirement.

Did you know that if you invest 2,000 today and at the end of every year for 40 years at an annual rate of 10 that you will have grown your portfolio to a value of 975,704 at the end of that time? How much of that future value dollar amount comes from the 2,000 investment you made today?
A) 975,704
B) 885,185
C) 23,798
D) 90,519

chreslie · **Reply #1 on:** Jul 10, 2018

Answer to Question 1

D

Answer to Question 2

Answer: D
Explanation: D) FV = PV (1 + r)n = 2,000 (1.10)40 = 90,518.51
MODE = END
INPUT 40 10 -2,000 0 ?
KEY N I/Y PV PMT FV
CPT 90,518.51