What is the yield to maturity of a one-year, risk-free, zero-coupon bond with a $10 000 face value and a price of $9 250 when released?

Consider the following timeline detailing a stream of cash flows:

If the current market rate of interest is 6.75%, then the present value (PV) of this stream of cash flows is closest to:

Assume that you are 30 years old today, and that you are planning on retirement at age 65. Your current salary is $45 000 and you expect your salary to increase at a rate of 5% per year as long as you work. To save for your retirement, you plan on making annual contributions to a superannuation fund. Your first contribution will be made on your 31st birthday and will be 8% of this year's salary. Likewise, you expect to deposit 8% of your salary each year until you reach age 65. Assume that the superannuation fund earns an annual rate of return of 7%.

The present value (PV) (at age 30) of your superannuation investment is closest to:

A corporation issues a bond with a face value of $10 000 and a coupon rate of 5.65% that matures on 15/07/2015. The holder of such a bond receives coupon payments of $282.50. How frequently are coupon payments made in this case?

Samantha has holdings of 250 ounces of platinum, currently valued at $815 dollars per ounce. She estimates that the price of platinum will rise to $850 per ounce in the next year. If the interest rate is 8%, should she sell the platinum today?

If $15 000 is invested at 10% per year, in approximately how many years will the investment double?

Which of the following statements regarding perpetuities is FALSE?

A lottery winner will receive $1 million at the end of each of the next ten years. What is the present value (PV) of her winnings at the time of her final payment, given that the interest rate is 8.75% per year?

What is the present value (PV) of an investment that will pay $400 in one year's time, and $400 every year after that, when the interest rate is 5%?

Ally wishes to leave a provision in her will that $2 000 will be paid annually in perpetuity to a local charity. How much must she provide in her will for this perpetuity if the interest rate is 6%?