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n investment offers to pay $ 100 a year forever starting...
4) An investment offers to pay $ 100 a year forever starting at the end of...
4) An investment offers to pay $ 100 a year forever starting at the end of year 6. If the interest rate is 8%, then what is the investment's value today? (Take note: first payment happens at the end of 6th year, not the end of 1st year.) Explain your work
An investment offers to pay $500 a year forever starting at the end of year 5....
An investment offers to pay $500 a year forever starting at the end of year 5. If the interest rate is 10%, what is the investment's value today? (Assume annual compounding) $3756.57 $3722.43 $3415.07 $3104.61
3. (1 pts) Suppose a mutual fund offers you an investment opportunity. For each $100 investment...
3. (1 pts) Suppose a mutual fund offers you an investment opportunity. For each $100 investment today, it will pay you $5 per year forever. The interest rate in the loanable funds market is 10%. You can inherit your investment or sell anytime. Would you invest? Why or why not? Show your work!
How much is a bond worth if you pay $55 per year in interest forever in...
How much is a bond worth if you pay $55 per year in interest
forever in the market interest rate is 8%
Question 11 2 pts How much is a bond worth if it pays $55 per year in interest forever and the market interest rate is 8%? $440 5687.50 $787.60 $1,250
Amara purchased a bond that will pay $50 a year forever, starting one year from now, if the interest rate r is positive...
Amara purchased a bond that will pay $50 a year forever, starting one year from now, if the interest rate r is positive and constant, how much is her bond worth today? 1. 50/r 2. 50/ (1+r) 3. 50 (1+r) 4. 50/(1+r+r2+m+)
You will receive 100 British bonds that pay interest forever. The amount of annual interest payments...
You will receive 100 British bonds that pay interest forever. The amount of annual interest payments that you we ece ve is S5.000. If you could invest yOur money at 4.25%, how much are these bonds worth today? O A $55,000 B. $197,250 C. $250,000 O D. $117.647 ? E. $64,480 are considering the purchase of XYZ Company's common stock which will pay a $1.00 per share dividend one year from the date of purchase. The divid end is expected...
PLEASE ANSWER EVERYTHING ASAP THANK YOU!!! Investment X offers to pay you $3,728 per year for...
PLEASE ANSWER EVERYTHING ASAP THANK YOU!!!
Investment X offers to pay you $3,728 per year for 9 years, whereas Investment Y offers to pay you $4,690 per year for 5 years. What is the dollar difference (higher minus lower) in the present values of these two cash flow streams if the discount rate is 5.26 percent? Answer to two decimals. What are the annual cash flows (in $) of an annuity for 14 years, which costs $33,721 today, if the...
Investment X offers to pay you $5,900 per year for nine years, whereas Investment Y offers...
Investment X offers to pay you $5,900 per year for nine years, whereas Investment Y offers to pay you $8,600 per year for five years. a. Calculate the present value for Investments X and Y if the discount rate is 4 percent. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) b. Calculate the present value for Investments X and Y if the discount rate is 14 percent (Do not round intermediate calculations and round your...
14) b) The British government has consol bonds (perpetuities) outstanding that pay £100 per year, forever....
14) b) The British government has consol bonds (perpetuities) outstanding that pay £100 per year, forever. Assume that the current discount rate is 4%. What is the value of the bond today in £, if the last payment was made yesterday? What is the value of the bond today in £, if you will receive the first payment today? Assume an ordinary perpetuity. If this consol trades in the market today at £2,480, what rate of return will an investor...
1.An investment will pay you $500 every year starting 1 year from today and goes on...
1.An investment will pay you $500 every year starting 1 year from today and goes on forever. If the interest rate is 5% p.a., what is the maximum price that you would pay for this investment? 2.You are given $200 each year starting next year and finishing in 15 years (t=15). If the interest rate is 6% p.a., what is the maximum price that you would pay for these cash flows? 3.You borrow $100,000 today, the annual interest rate is...
3. (1 pts) Suppose a mutual fund offers you an investment opportunity. For each $100 investment today, it will pay you $5 per year forever. The interest rate in the loanable funds market is 10%. You can inherit your investment or sell anytime. Would you invest? Why or why not? Show your work!
How much is a bond worth if you pay $55 per year in interest
forever in the market interest rate is 8%
Question 11 2 pts How much is a bond worth if it pays $55 per year in interest forever and the market interest rate is 8%? $440 5687.50 $787.60 $1,250
You will receive 100 British bonds that pay interest forever. The amount of annual interest payments that you we ece ve is S5.000. If you could invest yOur money at 4.25%, how much are these bonds worth today? O A $55,000 B. $197,250 C. $250,000 O D. $117.647 ? E. $64,480 are considering the purchase of XYZ Company's common stock which will pay a $1.00 per share dividend one year from the date of purchase. The divid end is expected...
PLEASE ANSWER EVERYTHING ASAP THANK YOU!!!
Investment X offers to pay you $3,728 per year for 9 years, whereas Investment Y offers to pay you $4,690 per year for 5 years. What is the dollar difference (higher minus lower) in the present values of these two cash flow streams if the discount rate is 5.26 percent? Answer to two decimals. What are the annual cash flows (in $) of an annuity for 14 years, which costs $33,721 today, if the...
14) b) The British government has consol bonds (perpetuities) outstanding that pay £100 per year, forever. Assume that the current discount rate is 4%. What is the value of the bond today in £, if the last payment was made yesterday? What is the value of the bond today in £, if you will receive the first payment today? Assume an ordinary perpetuity. If this consol trades in the market today at £2,480, what rate of return will an investor...
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