Name: ________________________________Acct 414 – Time Value of Money QuizName: ________________________________Acct 414 – Time Value of Money Quiz1. WMD Inc. issued $10 million of 10-year, 9% bonds on September 1, 2007. The bonds pay interest semiannually on March 1 and September 1 of each year. If the net yield to maturity was 8% per annum (simple interest) on September 1, 2007, what was the amount that the company received from its investors? 2. You want to set up an account to save money to buy a new car in three years. Youhave an account at the credit union which pays 6% per annum compounded monthly (0.5% per month). How much will you need to deposit at the end of eachmonth so that you will have $27,000 at the end of three years?Acct 414 – F06Check figures:1. $10,679,516.322. $686.39Acct 414 –
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