Planning to make annual deposits

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1. A bond has a $1,000 par value, 10 years to maturity, and a 7% annual coupon sells for $985. What is its yield to maturity?

2. You are planning to make annual deposits of $4,320 into a retirement account that pays 8 percent interest compounded monthly. How large will your account balance be in 25 years?

Reference no: EM13895794

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