Podcast
Play an AI-generated podcast conversation about this lesson
Questions and Answers
According to the information provided, what is the objective of investing $300,000?
According to the information provided, what is the objective of investing $300,000?
- To earn a fee equal to the yield-to-maturity on the 5-year Treasury
- To save $475 per month
- To grow it to $521,000 in 5 years (correct)
- To buy a house with a $221,000 gain
What is the fee that must be paid for the $300,000 investment?
What is the fee that must be paid for the $300,000 investment?
- $475 per month
- 4.68%
- $221,000
- The yield-to-maturity on the 5-year Treasury (correct)
What is the current yield-to-maturity on the 5-year Treasury?
What is the current yield-to-maturity on the 5-year Treasury?
- 4.21%
- 4.68% (correct)
- Fall 2022
- 1.06%
What is the average annual rate of return on a bond if held to maturity?
What is the average annual rate of return on a bond if held to maturity?
Signup and view all the answers
What must be the monthly rate of return on the portfolio to reach the $521,000 objective, ignoring the fee?
What must be the monthly rate of return on the portfolio to reach the $521,000 objective, ignoring the fee?
Signup and view all the answers
