Finance

A. The cost of an automobile is $10,000. If the interest rate is 5%, how much would you have to set aside now to provide this sum in five years? B. You have to pay $12,000 a year in school fees at the end of each of the next six years. If the interest rate is 8%, how much do you set aside today to cover these bills? C. You have invested $60,476 at 8%. After paying the above school fees, how much would you remain at the end of six years?    

 #2 What is the PV of $100 received in: A. Year 10 (at a discount rate of 1%) B. Year 10 (at a discount rate of 13%) C. Year 15 (at a discount rate of 25%) D. Each of years 1 through 3 (at a discount rate of 12%)? #3 In February 2009 Treasury 6s of 2026 offered a semiannually compounded yield of 3.5965%. Recognizing that coupons are paid semiannually, calculate the bond’s price.#4 Here are the prices of three bonds with 10-year maturities:                   Bond Coupon (%)Price (%)     281.62     498.39     8133.42           If coupons are paid annually, which bond offered the highest yield to maturity? Which had the lowest? Which bonds had the longest and shortest durations?