What is the expected price of the bond

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Reference no: EM132006484

a. CVC Inc.'s bonds mature in 7 years, have a par value of $1,000, and a coupon rate of 8% paid semi-annually. The market interest rate for the bonds is 9%. What is the expected price of the bond?

a. $1,084.81 b. $948.89 c. $969.96 d. $994.21 e. $944.30

b. You plan to retire in 40 years. If you deposit $500 into your investment account at the end of every year during the 40-year period, what is the account balance at the time when you retire? The account carries an interest rate of 3%.

a. $37,671.87

b. $37,682.65

c. $37,700.63

d. $37,690.87

Reference no: EM132006484

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