If an instrument pays $131 in one year and $172 in three years, whats is the present value of the instrument if the interest rate is 11%?
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If an instrument pays $131 in one year and $172 in three years, whats is the...
4.)If an instrument pays $131 in one year and $194 in three years, what is the present value of the instrument if the interest rate is 7%?
2) If a security pays $110 in one year and $133 in three years, its present value is $200 if the interest rate is A) 5 percent. B) 10 percent. C) 12.5 percent. D) 15 percent. 7) The price of a coupon bond and the interest rate are ________ related; that is, as the interest rate ________, the price of the bond ________. A) positively; rises; rises B) negatively; falls; falls C) positively; rises; falls D) negatively; rises; falls You...
How do you solve these? thanks in advance :) 2.)With an interest rate of 4 percent, what is the present value of $181 to be received next year? Round your answer to at least 2 decimal places. 3.)With an interest rate of 3 percent, what is the present value of $159 to be received in two years? Round your answer to at least 2 decimal places. 4.)If an instrument pays $131 in one year and $194 in three years, what...
Which of the following instruments pays the holder of the instrument a fixed interest payment every year until maturity, and then pays the holder the face value (principle) of the instrument? at maturity O A. fixed-payment loan O B. simple loan O C. coupon bond O D. discount bond Suppose that a bond has one year to maturity. The yield to maturity on the bond if it was bought for $1130.00 and has a $1100 face value with a coupon...
An annuity pays $5000 each year for 5 years starting today. It pays $6000 per year for year 7 to year 10. The interest rate are 4% for the first 5 years and 8% for years 6 to 10. What is the present value of these cash flows?
Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 10%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 10% interest per year. What is the balance in the account at the end of each of the next...
Suppose you receive $120 at the end of each year for the next three years. a. If the interest rate is 8%, what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays 8% interest per year What is the balance in the account at the end of each of the next...
Based on the terms of a bond, it pays a holder $62,500 three years after it is issued. The stated interest rate on this bond is 4%, which is commensurate with the market interest rate. What is the present value of this bond? Assume annual compounding.
Answer: A AACSB: Analytical Thinking 6) If a security pays $55 in one year and $133 in three years, its present value is $150 if the interest rate is Copyright © 2016 Pearson Education, Inc. A) 5 percent. B) 10 percent. C) 12.5 percent. D) 15 percent. Lo. 16125
Based on the terms of a bond, it pays a holder $62,500 three years after it is issued. The stated interest rate on this bond is 4%, which is commensurate with the market interest rate. What is the present value of this bond? Assume annual compounding. $55,541 $55,549 $55,554 $55,559 $55,562 $55,568 none of the above