Questions from Personal Finance

Q: Mary Cooper, Sheldon’s mother, who lives in east Texas,

Mary Cooper, Sheldon’s mother, who lives in east Texas, wants to help pay for her grandchild’s education. How long will it take Mary to reach her goal of $200,000 i...

Q: If one year of college currently costs $25,000,

If one year of college currently costs $25,000, how much will it cost Grand Rapids, Michigan’s resident Michelle Spindle to pay for one year of schooling for newborn daughter, Meliss...

Q: Jordan and Jeremy, who are twins living in Concord, New

Jordan and Jeremy, who are twins living in Concord, New Hamphire, took different approaches to investing. Jordan saved $2,000 per year for ten years starting at age 23 and never added any more money t...

Q: Kunal Nayyar from London, had $50,000 in investments

Kunal Nayyar from London, had $50,000 in investments in the USA at the beginning of the year that consisted of a diversified portfolio of stocks (40 percent), bonds (40 percent), and cash equivalents...

Q: What is the market price of a $1,000,

What is the market price of a $1,000, 8 percent bond if comparable market interest rates drop to 6 percent and the bond matures in 15 years?

Q: What is the market price of a $1,000,

What is the market price of a $1,000, 8 percent bond if comparable market interest rates rise to 10 percent and the bond matures in 14 years?

Q: Enlai Li Zhang of Los Angeles, California recently bought a home

Enlai Li Zhang of Los Angeles, California recently bought a home for $700,000. The previous owner had a $600,000 HO-1 policy on the property, and Enlai can simply pay the premiums to keep the same cov...

Q: For a municipal bond paying 3.7 percent for a taxpayer

For a municipal bond paying 3.7 percent for a taxpayer in the 33 percent tax bracket, what is the equivalent taxable yield?

Q: A corporate bond maturing in 15 years with a coupon rate of

A corporate bond maturing in 15 years with a coupon rate of 9.9 percent was purchased for $980 and it now selling for $1,010. (a) What is its current yield? (b) What will be its selling price in two y...

Q: Xiao and Shiao Jing-jian, newlyweds from Laramie, Wyoming

Xiao and Shiao Jing-jian, newlyweds from Laramie, Wyoming, have decided to begin investing for the future. Xiao is a 7-Eleven store manager, and Shiao is a high-school math teacher. The couple intends...