A Company Deposits $5000 at the End of Every Month

question 30

Multiple Choice

A company deposits $5000 at the end of every month into a fund that pays j₄ = 18%.What is the equivalent quarterly deposit,made at the end of every 3-month period,if the fund credits simple interest for the fractional part of an interest period?

• A)$15,222.80
• B)$15,225.00
• C)$15,450.00
• D)$15,685.13

Understand the concept of duration in the context of perpetuities.

Evaluate how yield to maturity affects bond duration and prices.

Compare and contrast durations across different bonds and yields.

Understand the definitions and differences between new buys, modified rebuys, and straight rebuys.