(5 pts) 25. The present value of the following cash flow stream is $5,933.86 when discounted...
A major car manufacturing firm issues a 20 year $1,000,000 bond at par. The bond pays a 6% (APR) semiannual coupon. 5 years later, the Federal Reserve Board cuts the fed funds rate, causing interest rates for similar firms to fall to 4% (APR). What is the new bond price? (a) $1,222,368 (b) $1,223,965 (c) $1,000,000 (d) $1,273,555 . If you bought the bond at issue and held it to maturity, what is the effective annual rate (EAR) that you...
SHOW ALL WORK. PROBLEMS 1 and 2 ARE CONNECTED 1. A major car manufacturing firm issues a 20 year $1,000,000 bond at par. The bond pays a 6% (APR) semiannual coupon. 5 years later, the Federal Reserve Board cuts the fed funds rate, causing interest rates for similar firms to fall to 4% (APR). What is the new bond price? A. $1,222,368 B. $1,223,965 C. $1,000,000 D. $1,273,555 2. . If you bought the bond at issue and held it to...
The present value of the following cash flow stream is $6.820 when discounted at 7 percent annually. Year 1 2 3 4 Cash Flow $1,000 ? 1,300 1,900 What is the value of the missing cash flow? Multiple Choice O $3,374.73 $3,786.46
The present value of the following cash flow stream is $7,200 when discounted at 10 percent annually. What is the value of the missing cash flow at year 2? Year Cash Flow 1 3,100 2 3 2,200 4 1,500 A. $2,500 B. $2,250 C. $2,062 D. $1,952 E. $1,842 Please help urgently. No work needs to be shown.
The present value of the following cash flow stream is $2,487.24 when discounted at 12 percent annually. What is the value of the missing (t=2) cash flow?
The present value of the following cash flow stream is $5,933.86 when discounted at 11 percent annually. What is the value of the missing cash flow? (Please show work)
SHOW ALL WORK. Preferred if you showed how to do it on both financial calculator and by hand. 1. You plan to retire in 35 years. At the end of each year, you plan on saving $15,000, and your bank pays you 2% annual interest. How much will you have saved by the time you retire? A. $749,917 B. $374,979 C. $525,000 D. $262, 514 2. A bond with a face value of $1,000 pays a 10% (APR) semiannual coupon, and...
What is the Net Present Value of the following cash flow stream? Year Cash Flow 0 -$6,119 1 $1,333 2 $1,395 3 $1,160 4 $2,709 Assume an interest rate of 20%
What is the present value of the following cash flow stream at a rate of 9.00%? Years: 0 3 4 1 2 $75 $225 CFs: $0 $0 $300 Select one: C a. $441.36 b. $402.03 c. S436.99 d. $511.28 e. $470.71 A 12-year bond has an annual coupon of 9%. The coupon rate will remain fixed until the bond matures. The bond has a yield to maturity of 7%. Which of the following statements is CORRECT? Select one: a. If...
a. What is the present value of the following set of cash flows, discounted at 10.8 % per year? a. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year - CF $8 $19 $19 $30 b. What is the present value of the following set of cash flows, discounted at 10.8% per year? Year CF $52 $41 $30 $ 19 9 8 c. Each set contains the same cash flows ($8,...