Say that the interest rate is 11% and you invest $200 today, and then another $220...
Say that the interest rate is 11% and you invest $200 today, and then another $220 exactly one year from today. What is the total future value of these investments two years from today?
Group of answer choices
$490.62
$498.85
$511.15
$521.08
A coupon bond pays $400 at the end of each year for 3 years, and at the maturity date in 3 years, in addition to the final coupon payment, the bond also makes a face value payout of $890. If the interest rate is 6% then this bond has a present value of
Group of answer choices
$1,792.25
$1,801.15
$1,816.5
$1,838.40
Homework Answers
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Say that the interest rate is 11% and you invest $200 today, and
then another $220...
Say that the interest rate is 12% and you invest $400 today, and then another $400...
Say that the interest rate is 12% and you invest $400 today, and then another $400 exactly two years from today. What is the total future value of these investments three years from today? $905.45 $995.45 $1,009.97 $1,063.73
Consider a bond with the following characteristics today (Year 0): Face Value=$1000 Coupon Rate=5% Interest Rate=9%...
Consider a bond with the following characteristics today (Year 0): Face Value=$1000 Coupon Rate=5% Interest Rate=9% Time to maturity=10 years What is the current yield in Year 1? (Remember: Starting year is Year 0) Group of answer choices 6.58% 6.73% 6.40% 6.92%
4. Bond Valuation Suppose you invest $3500 today and receive $9500 in five years. a. What...
4. Bond Valuation Suppose you invest $3500 today and receive $9500 in five years. a. What is the IRR of this opportunity? b. Suppose another investment opportunity also requires $3500 upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the mount you will receive each year? 5. Bond Valuation Suppose that Ally Financial Inc. issued a bond with 10...
A coupon bond pays $100 at the end of each year for 3 years, and at...
A coupon bond pays $100 at the end of each year for 3 years, and at the maturity date in 3 years, in addition to the final coupon payment, the bond also makes a face value payout of $500. If the interest rate is 3% then this bond has a present value of $740.43 $755.55 $762.98 $808.08
Use the following information to answer the question: Coupon Rate = 6% Face Value = $1,000...
Use the following information to answer the question: Coupon Rate = 6% Face Value = $1,000 Maturity = 10 years Yield to Maturity = 6.5% Assume this bond pays interest once and year, and there is exactly one year until its next coupon. If you purchased the bond today and held to maturity, what would your actual rate of return be if you were able to reinvest the coupon payments at 7%?
8. You have just received an inheritance of $20,000. You wish to invest in fixed income...
8. You have just received an inheritance of $20,000. You wish to invest in fixed income securities such as bonds, which you think are less risky than stocks. After some research, you have narrowed down your choices to the following three fixed income securities: One-year Treasury Bill: Face value of $1000 Yield to maturity of 1.74% Coupon Bond A: Two years to maturity Face value of $1000 Coupon rate of 3%, with semi-annual coupon payments Price multiple of face value...
A bond pays a coupon (or interest) rate of 5 percent each year for five years,...
A bond pays a coupon (or interest) rate of 5 percent each year for five years, with a future (face) value of $200. If the bond were sold today, what would be the present value of the bond? Multiple Choice $145 $157 $200 $150
Today you purchase a coupon bond that pays an annual interest, has a par value of...
Today you purchase a coupon bond that pays an annual interest, has a par value of $1,000, matures in six years, has a coupon rate of 10%, and has a yield to maturity of 8%. One year later, you sell the bond after receiving the first interest payment and the bond's yield to maturity had changed to 7%. Your annual total rate of return on holding the bond for that year is ?
Jill wants to invest in a four-year bond that pays a coupon of 11 percent annually....
Jill wants to invest in a four-year bond that pays a coupon of 11 percent annually. The bonds are selling at $962.13 today and have a face value of $1,000. If she buys this bond and holds it to maturity, what would be the yield? (USE EXCEL or FINANCIAL CALCULATOR. Round to the closest answer.)
today. If the annual market interest rate is 14% and there is no inflation, a bond...
today. If the annual market interest rate is 14% and there is no inflation, a bond with face value $56,400 and maturity date in exactly eight years is worth $ 43,398 0 $ 160,885.9 $ 19,771.5 $ 49,473.7
4. Bond Valuation Suppose you invest $3500 today and receive $9500 in five years. a. What is the IRR of this opportunity? b. Suppose another investment opportunity also requires $3500 upfront, but pays an equal amount at the end of each year for the next five years. If this investment has the same IRR as the first one, what is the mount you will receive each year? 5. Bond Valuation Suppose that Ally Financial Inc. issued a bond with 10...
today. If the annual market interest rate is 14% and there is no inflation, a bond with face value $56,400 and maturity date in exactly eight years is worth $ 43,398 0 $ 160,885.9 $ 19,771.5 $ 49,473.7
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