1) Over the past 3 years an investment returned 0.16, -0.12, and 0.06. What is the variance of returns?
2) You have just retired with savings of $9 million. If you expect to live for 46 years and to earn 10% a year on your savings, how much can you afford to spend each year (in $ dollars)? $_______. (Assume that you spend the money at the start of each year.)
3. Bernard co. has 6% coupon bonds on the market that have 17 years left to maturity. The bonds will make annual payments. If the YTM on these bonds is 6%, what is the current bond price (in $ dollars)? (Assume the face value of the bond is $1,000)