(a) Calculate the current value of 5 annual payments of $1324 starting now at an annual...
(a) Calculate the current value of 5 annual payments of $1324 starting now at an annual discount factor of 0.95.
(b) Calculate the current value of 5 annual payments of $2300 starting a year from now at an annual discount factor of 0.9.
(c) Calculate the current value of 12 monthly payments of $5000 at a monthly discount factor of 0.99.
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(a) Calculate the current value of 5 annual payments of $1324
starting now at an annual...
A 5-year annuity of ten $9,000 semiannual payments will begin 8 years from now, with the...
A 5-year annuity of ten $9,000 semiannual payments will begin 8 years from now, with the first payment coming 8.5 years from now. a. If the discount rate is 6 percent compounded monthly, what is the value of this annuity 2 years from now? b. What is the current value of the annuity? as went is recurent value
11. Jeff bought an increasing perpetuity-due with annual payments starting at 5 and increasing by 5...
11. Jeff bought an increasing perpetuity-due with annual payments starting at 5 and increasing by 5 each year until the payment reaches 100. The payments remain at 100 thereafter. The annual effective interest rate is 7.5%. Determine the present value of this perpetuity. A. 700 B. 785 C. 760 D. 735 E. 810
A 15-year annuity of thirty $10,000 semiannual payments will begin 11 years from now, with the...
A 15-year annuity of thirty $10,000 semiannual payments will begin 11 years from now, with the first payment coming 11.5 years from now. Required : (a) If the discount rate is 10 percent compounded monthly, what is the value of this annuity 6 years from now? (b) What is the current value of the annuity?
A eight-year growing annuity of eight annual payments will begin 6 years from now, with the...
A eight-year growing annuity of eight annual payments will begin 6 years from now, with the first payment $6,200 coming 7 years from now and annual payment growing at 3 percent. If the annual discount rate is 7 percent, what is the value of this growing annuity 4 years from now?
Suppose there is a 3-year bond with a $1000 face value, 30% annual coupon payments and...
Suppose there is a 3-year bond with a $1000 face value, 30% annual coupon payments and a 20% annual yield to maturity. 4) a Without any calculation, briefly explain whether this bond will be selling a premium or a discount. b) Calculate the price of this bond. c) Calculate the duration of this bond. d) Suppose the interest rates in the economy rise by 5 percentage points immediately after someone bought this bond. Show a calculation using duration for what...
Suppose there is a 3-year bond with a $1000 face value, 30% annual coupon payments and...
Suppose there is a 3-year bond with a $1000 face value, 30% annual coupon payments and a 20% annual yield to maturity. a) Without any calculation, briefly explain whether this bond will be selling a premium or a discount. b) Calculate the price of this bond. c) Calculate the duration of this bond. d) Suppose the interest rates in the economy rise by 5 percentage points immediately after someone bought this bond. Show a calculation using duration for what should...
calculate the present value of the annual end-of-year payments at the specified discount rate over the...
calculate the present value of the annual end-of-year payments at the specified discount rate over the given For each of the investments given in the following table, period. The present value, PV, of the annual end-of-year returns at the specified discount rate over the given period for Investment Ais (Round to the nearest cent.) The present value, PV, of the annual end-of-year returns at the specified discount rate over the given period for Investment Bis S . (Round to the...
1.What constant payment for the next 10 years (starting 1 year from now, 10 payments) would...
1.What constant payment for the next 10 years (starting 1 year from now, 10 payments) would be equivalent to receiving $350 every other year starting 10 years from now. Assume the annual cost of capital is 13%. 2.Suppose you own two assets with the following payouts. (1) $250 at the end of every year starting 1 year from now. The annual cost of capital for these cash flows is 9%. (2) $650 one year from now and a cash flow...
You take out an $8,600 car loan that calls for 48 monthly payments starting after 1...
You take out an $8,600 car loan that calls for 48 monthly
payments starting after 1 month at an APR of 6%. a. What is your
monthly payment? (Do not round intermediate calculations. Round
your answer to 2 decimal places.) b. What is the effective annual
interest rate on the loan? (Do not round intermediate calculations.
Enter your answer as a percent rounded to 2 decimal places.) c. Now
assume the payments are made in four annual year-end installments.
What...
The GEM Company just purchased upgraded CAD software for $20,000 now and annual payments of $600...
The GEM Company just purchased upgraded CAD software for $20,000 now and annual payments of $600 per year for 10 years starting 3 years from now for annual upgrades. What is the present worth in year 0 of the payments if the interest rate is 6% per year? solve it in Excel, shoe formula
A 5-year annuity of ten $9,000 semiannual payments will begin 8 years from now, with the first payment coming 8.5 years from now. a. If the discount rate is 6 percent compounded monthly, what is the value of this annuity 2 years from now? b. What is the current value of the annuity? as went is recurent value
11. Jeff bought an increasing perpetuity-due with annual payments starting at 5 and increasing by 5 each year until the payment reaches 100. The payments remain at 100 thereafter. The annual effective interest rate is 7.5%. Determine the present value of this perpetuity. A. 700 B. 785 C. 760 D. 735 E. 810
Suppose there is a 3-year bond with a $1000 face value, 30% annual coupon payments and a 20% annual yield to maturity. 4) a Without any calculation, briefly explain whether this bond will be selling a premium or a discount. b) Calculate the price of this bond. c) Calculate the duration of this bond. d) Suppose the interest rates in the economy rise by 5 percentage points immediately after someone bought this bond. Show a calculation using duration for what...
calculate the present value of the annual end-of-year payments at the specified discount rate over the given For each of the investments given in the following table, period. The present value, PV, of the annual end-of-year returns at the specified discount rate over the given period for Investment Ais (Round to the nearest cent.) The present value, PV, of the annual end-of-year returns at the specified discount rate over the given period for Investment Bis S . (Round to the...
You take out an $8,600 car loan that calls for 48 monthly
payments starting after 1 month at an APR of 6%. a. What is your
monthly payment? (Do not round intermediate calculations. Round
your answer to 2 decimal places.) b. What is the effective annual
interest rate on the loan? (Do not round intermediate calculations.
Enter your answer as a percent rounded to 2 decimal places.) c. Now
assume the payments are made in four annual year-end installments.
What...
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