b) Suppose a Government of Canada bond will pay $2,500 five years from now. If the going interest rate on 5-year treasury bonds is 4.25%, how much is the bond worth today?
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c) Ten years ago, Peter Inc. earned $0.50 per share. Its earnings this year were $2.20 per share. What was the growth rate in Peter’s earnings per share (EPS) over the 10-year period?
d) What is the PV of an ordinary annuity with 10 payments of $2,700 if the appropriate interest rate is 6.5%?
e) Your uncle has $375,000 and wants to retire. He expects to live for another 25 years and to be able to earn 7.5% on his invested funds. How much could he withdraw at the end of each of the next 25 years and end up with zero in the account?