BUSN120 WK8 Discussion

26) can i please get help ?

Hello,    please answer the attached question    BR,

Question 6 Suppose you are interested in buying a one-year 1,000 dirham bond. You have two options available in the bond market: Option 1 - Emirates Airline bond that pays a coupon rate of 4.75% per year paid annually. Option 2 - Emaar bond that pays a coupon rate of 6.0% per year paid annually. If you decide to buy the Emirates Airline bond, which of the prices below will give you a return approximately equal to the Emaar bond? O a. 956.9 dirhams Ob.973.2 dirhams O. 995.2 dirhams Od. 988.2 dirhams

You are a financial planner. One of your clients is 40 years old and wants to begin saving for retirement. You advise her to put $5,000 a year into the stock market. You estimate that the market's effective return will be, on average, 12 percent a year. Assume the investment will be made at the end of the year. What is the value of her savings after 20 years.You are a financial planner. One of your clients is 40 years old and wants to begin saving for retirement. You advise her to put $5,000 a year into the stock market. You estimate that the market's effective return will be, on average, 12 percent a year. Assume the investment will be made at the end of the year. What is the value of her savings after 20 years.   Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

31. An analyst is considering the purchase of a Government of Canada bond that will pay its face value of $10 000 in one year's time, but pay no direct interest. The market interest rate is 4% and the bond is being offered for sale at a price of $9400. The analyst should recommend     purchasing the bond because the purchase price is more than its present value and is therefore profitable.     not purchasing the bond because the buyer could earn an additional $376 by investing the $9400 elsewhere.     not purchasing the bond because the purchase price is less than its present value.     purchasing the bond because the purchase price is less than its present value and is therefore profitable.     not purchasing the bond because the buyer could earn an additional $224 by investing the $9400 elsewhere.

Please answer correctly Only typed answer

How does IRR (internal rate of return rule) differentiate from NPV (net present value rule) when deciding profitable investments? Is there a specific rule preferred or do they tend to give the same answer? Thank you so much im trying to understand them better.

Consider two projects: Project A currently costs $15 million, which is to be paid this year. The returns are $10 million in one year and $8 million in two years. Project 8 currently costs $13 million, again to be paid this year. The returns are $9 million in one year and $8 million in two years. At an interest rate of 6%, the net present value of Project A is roughly while the net present value of Project B is roughly Suppose investing in one project eliminates the opportunity to invest in the other. If the interest rate is 6%, Project is preferable.

Please do your own work, don't copy from the internet   Q2)    2, You invest $3,000 for three years at 12 percent.   a. What is the value of your investment after one year? Multiply $3,000 × 1.12. b. What is the value of your investment after two years? Multiply your answer to part a by 1.12. c. What is the value of your investment after three years? Multiply your answer to part b by 1.12. This gives your final answer. Combine these three steps by using the formula  to find the future value of $3,000 in 3 years at 12 percent interest.

The market interest rate is 9 percent and is expected to stay at that level. Consumers can borrow and lend all they want at this rate. Consider each of the following situations. 1) Would you prefer a $500 gift today or a $540 gift next year? 2) Would you prefer a $100 gift now or a $500 loan without interest for four years? 3) Would you prefer a $350 rebate on an $8000 car or one year of financing for the full price of the car at 0 percent interest?

macroeconomics  Q2: Three students have each saved $1,000. Each has an investment opportunity in which he or         she can invest up to $2,000. Here are the rates of return on the students’ investment projects:   Harry 5 percent Ron 8 percent Hermione 20 percent   If borrowing and lending is prohibited, so each student uses only his or her saving to finance his or her own investment project, how much will each student have a year later when the project pays its return? Now suppose their school opens up a market for loanable funds in which students can borrow and lend among themselves at an interest rate r. What would determine whether a student would choose to be a borrower or lender in this market? Among these three students, what would be the quantity of loanable funds supplied and quantity demanded at an interest rate of 7 percent? At 10 percent? At what interest rate would the loanable funds market among these three students be in equilibrium? At this interest rate, which…

All the investment vehicles that you can use in your investment plan are traded in the securities markets in the form of stocks, bonds, and other financial instruments. There are physical places such as the NYSE (New York Stock Exchange) or the electronic networks such as NASDAQ (National Association of Securities Dealers Automated Quotations) where investors trade these securities. Securities markets can be divided into primary and secondary markets. When securities are bought and sold by investors who did not originally purchase the issued security, the transactions take place in the     market.   Within the arena of security trading, the secondary market plays an extremely important role. The secondary market can be divided into the broker market and dealer market. For each of the following statements, indicate by checking the appropriate boxes, whether each statement is true of broker markets, dealer markets, both markets, or neither market.     Broker Dealer…

When interest rates rise, what needs to happen in order for the present value of an asset to remain the same, using a rate of return approach? a) The amount of the income stream needs to fall and/or cost of capital needs to rise. b) The amount of the income stream needs to fall and/or cost of capital needs to fall. c) The amount of the income stream needs to rise and/or cost of capital needs to fall. d) The amount of the income stream needs to rise and/or cost of capital needs to rise. Save

Suppose you invested $94 in the Ishares High Yield Fund (HYG) a month ago. It paid a dividend of $0.50 today and then you sold it for $95. What was your dividend yield and capital gains yield on the investment?

Imagine that you are a financial manager for a medium-sized company. Describe how you would use capital budgeting techniques to determine whether a business investment is a good idea. Give an example of a business investment venture and how you would use capital budgeting to ensure it is a good investment.

Fill in each statement with the appropriate capital investment analysis method: Payback, ARR, NPV, or IRR. Some statements may have more than one answer. a. نه ن ن ن نه b. C. d. e. is (are) more appropriate for long-term investments. highlights risky investments. shows the effect of the investment on the company's accrual-based income. is the interest rate that makes the NPV of an investment equal to zero. requires management to identify the discount rate when used.

What process does the net present value method use to help management determine whether a project is acceptable to a company? Options : A. It discounts net cash flows to their present value and then compares that value to the capital outlay required by the project.B. It determines the interest rate that will cause the present value of the capital expenditure to equal the present value of the expected net cash flows.C. It divides the present value of net cash flows by the initial investment to determine the profitability index of the project.D. It identifies the time period required to recover the cost of the capital investment from the net annual cash flow produced by the project.

Based on the Research Question and Research Objective provided, write a section for significance and justification. Significance means why the topic matters in the global (SDG 9.3) and local context  (Malaysia) and what potential contributions can be made. Justification should be about why it is important and covering the research gap.

Hua Xing runs a lawn care service. Buying an additional riding lawn mower will cost $3,000 but would allow her firm to earn $1,000 of additional revenue each year for the next four years. She expects marginal efficiency of capital to be at least 10%. Which statement is an accurate description of this investment opportunity? a) Hua Xing should make the investment because turning $3,000 into $4,000 provides a rate of return of 33%. b) Hua Xing should not make the investment because it has a negative net present value. c) Hua Xing should not make the investment because it provides only a 5.16% return on investment. Od) Hua Xing should make the investment because the internal rate of return exceeds 10%.

Indicate which one of following statements is true for a coupon bond: A) When the price of a bond is above its par value, the yield to maturity is greater than the coupon rate. B) The yield to maturity and the price of a coupon bond are positively related. C) When the price of a coupon bond equals its face value, the yield to maturity equals the coupon rate. D) When the price of a bond is below its par value, the yield to maturity is less than the coupon rate Support your answer with the use of a formula and explain in detail all the assumptions you make and all the components you use. (You may also want to use a yield calculator to verify you answer).

Susie Lee won a lottery. She will have a choice of receiving $25,000 at the end of each year for the next 30 years, or a lump sum today. If she can earn an annual return of 10 percent on any investment she makes, what is the least she should be willing to accept today as a lump-sum payment? (Round to the nearest hundred dollars.)   Use the NPV as you have equal cash flows of $25,000 for the next 30 years.

John will invest $100, 000 in buying the rights to a water well. In perpetuity, the water well makes $20,000 in revenue each year, but it carries an annual cost of $5,000 on maintenance. Also, John must pay the rights of the water well this year, but the revenue and maintenance costs start next year. If the discount rate is 10%, what is the net present value of the investment?