Reference no: EM132554215

Question 1: The company you work for will deposit $150 at the end of each month into your retirement fund. Interest is compounded monthly. You plan to retire 25 years from now and estimate that you will need to withdraw $2,000 per month during retirement, which will last 30 years. If the account pays 12% compounded monthly, how much do you need to put into the account each month, in addition to your company's deposit, in order to meet your retirement needs?

Question 2: Jason Greg is a recent retiree who is interested in investing some of his savings in corporate bonds. Listed below are the bonds he is considering adding to his portfolio.

Bond A has a 7.5% semiannual coupon, matures in 12 years, and has a $1,000 face value.

Bond B has a 10% semiannual coupon, matures in 12 years, and has a $1,000 face value.

Bond C has an 11.5% semiannual coupon, matures in 12 years, and has a $1,000 face value.

Each bond has a YTM of 10%.

1. Before calculating the prices of the bonds, indicate whether each bond is trading at a premium, discount or par.
2. Calculate the price of each of these bonds.
3. Calculate the current yield for each bond.
4. If the yield to maturity for each bond remains at 9%, what will be the price of each bond 1 years from now?