finance 1628653 2

I want to know how to do these…I get confused with formulas….


You believe you will need to have saved $480,000 by the time you retire in 40 years in order to live comfortably. If the interest rate is 6% per year, how much would you need if you believe that you will inherit $100,000 in 10 years?



General Matter’s outstanding bond issue has a coupon rate of 11.4%, and it sells at a yield to maturity of 9.20%. The firm wishes to issue additional bonds to the public at face value. What coupon rate must the new bonds offer in order to sell at face value?