What is the present worth of a $50,000 bond that has an interest of 20% per...
What is the present worth of a $50,000 bond that has an interest of 20% per year payable quarterly? The bond matures in 5 years. The interest rate in the marketplace is 10% per year, compounded semiannually.
Please do not use excel.
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What is the present worth of a $50,000 bond that has an interest
of 20% per...
25 A corporate bond has a face value of $10,000, a bond interest rate of 6%...
25 A corporate bond has a face value of $10,000, a bond interest rate of 6% per year payable semiannually, and a maturity date of 20 years from now. If a person purchases the bond for $9000 when the interest rate in the marketplace is 8% per year, compounded semiannually. the size and frequency of the interest payments the person will receive are closest to (2.5 Points) 5400 every 6 months $270 every 6 months $360 every 6 months $300...
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in...
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in year 1 and annual increases of 8% per year for 10 years. Use an interest rate of 8% per year. (10 points) Pg=. 2 - 8v. Sop VVVV. 72 70 Now $s < 4. The equivalent present worth of a geometric gradient series of cash flows for 10 years was found to be $19,776. If the interest rate was 15% per year and the...
Please provide a CFD (Cash Flow Diagram) in addition to your solution. Thank You. Problem-4 A...
Please provide a CFD (Cash Flow Diagram) in addition to your
solution. Thank You.
Problem-4 A $10,000 bond has an interest rate of 6% per year payable quarterly. The bond matures 15 years from now. At an interest rate of 8% per year, compounded quarterly, the present worth of the bond is closest to:$------- Answer: CFD:
only numbers 2,3, and 6 You are trying to decide a present worth of a contract....
only numbers 2,3, and 6
You are trying to decide a present worth of a contract. You will receive $10,000 when the contract is signed, a $20,000 payment at the end of Year 1, and $30,000 at the end of Year 2. and $40,000 at the end of Year 3, and $50,000 at the end of Year 4 when the project is completed. Your annual costs for this project are $10,000 per year. What is the present worth of the...
Page 2 of 6 Problem 2 A certain U.S. Treasury bond that matures in 15 years has a $10,000 face va...
Page 2 of 6 Problem 2 A certain U.S. Treasury bond that matures in 15 years has a $10,000 face value. This means that the bondholder will receive $10,000.00 cash when the bond's maturity date is reached. The bond pays an annual nominal interest of 8% of its face value in semi-annual installments starting at the end of the 1st semi-annual period. a) Draw a cash flow diagram showing bond payments. b) What is its present worth. PW, ifthe prevailing...
4.54 What is the future worth in year 8 of a present sum of $50,000 if...
4.54 What is the future worth in year 8 of a present sum of $50,000 if the interest rate is 10% per year in years 1 through 4 and 1% per month in years 5 through 8?
Calculate the present worth of the Alternative "A". Assume the interest rate is 2% per year,...
Calculate the present worth of the Alternative "A". Assume the interest rate is 2% per year, compounded annually. Alternative A Initial cost $1,000,000 Annual maintenance cost $50,000 Overhaul cost every 4 years $200,000 Salvage value $400,000 Useful life 40 years
Navistar Electric issued 1000 debenture bonds 4 years ago with a face value of $5,000 each...
Navistar Electric issued 1000 debenture bonds 4 years ago with a face value of $5,000 each and a bond interest rate of 7% per year payable semiannually. The bonds have a maturity date of 20 years from the date they were issued. If the interest rate in the market place is 10% per year compounded semiannually, determine the present worth today of one bond. The present worth of one bond today is $
A $35,000, 5% bond that matures in 10 years has interest payable semiannually. If the quoted...
A $35,000, 5% bond that matures in 10 years has interest payable semiannually. If the quoted price is $36,500, what is the yield rate?
A company has issued a 20 year bonds, with a face value of $50,000. Interest at...
A company has issued a 20 year bonds, with a face value of $50,000. Interest at 8% is paid quarterly. If an investor desires to earn 12%, compounded quarterly, what would be the purchase price of the bond?
25 A corporate bond has a face value of $10,000, a bond interest rate of 6% per year payable semiannually, and a maturity date of 20 years from now. If a person purchases the bond for $9000 when the interest rate in the marketplace is 8% per year, compounded semiannually. the size and frequency of the interest payments the person will receive are closest to (2.5 Points) 5400 every 6 months $270 every 6 months $360 every 6 months $300...
3. Determine the present worth of a maintenance contract that has a cost of $50,000 in year 1 and annual increases of 8% per year for 10 years. Use an interest rate of 8% per year. (10 points) Pg=. 2 - 8v. Sop VVVV. 72 70 Now $s < 4. The equivalent present worth of a geometric gradient series of cash flows for 10 years was found to be $19,776. If the interest rate was 15% per year and the...
Please provide a CFD (Cash Flow Diagram) in addition to your
solution. Thank You.
Problem-4 A $10,000 bond has an interest rate of 6% per year payable quarterly. The bond matures 15 years from now. At an interest rate of 8% per year, compounded quarterly, the present worth of the bond is closest to:$------- Answer: CFD:
only numbers 2,3, and 6
You are trying to decide a present worth of a contract. You will receive $10,000 when the contract is signed, a $20,000 payment at the end of Year 1, and $30,000 at the end of Year 2. and $40,000 at the end of Year 3, and $50,000 at the end of Year 4 when the project is completed. Your annual costs for this project are $10,000 per year. What is the present worth of the...
Page 2 of 6 Problem 2 A certain U.S. Treasury bond that matures in 15 years has a $10,000 face value. This means that the bondholder will receive $10,000.00 cash when the bond's maturity date is reached. The bond pays an annual nominal interest of 8% of its face value in semi-annual installments starting at the end of the 1st semi-annual period. a) Draw a cash flow diagram showing bond payments. b) What is its present worth. PW, ifthe prevailing...
4.54 What is the future worth in year 8 of a present sum of $50,000 if the interest rate is 10% per year in years 1 through 4 and 1% per month in years 5 through 8?
Navistar Electric issued 1000 debenture bonds 4 years ago with a face value of $5,000 each and a bond interest rate of 7% per year payable semiannually. The bonds have a maturity date of 20 years from the date they were issued. If the interest rate in the market place is 10% per year compounded semiannually, determine the present worth today of one bond. The present worth of one bond today is $
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