1. Determine the present value of $1,500 to be received at the end of 10 years if the compound rate of interest is 9 percent. a. $710.25 b. $583.12 c. $633.62 d. $674.00 2. Determine the present value of the following cashflows if the assumed discount rate is 14 percent. Year 1: $1000; Year 2: -$500; Year 3: $2000 and Year 4: -$600. a. $1,710.15 b. $1,487.15 c. $1,601.85 d. $2,197.65 3.Determine the present value of the following cashflows if the assumed discount rate is 9 percent. Year 1: $1000; Year 2: -$1500; Year 3: $2000 and Year 4: -$1000. a. $1,600.25 b. $1,800.15 c. $1,715.60 d. $1,450.70 4. Determine the price of a $1000 face value zero coupon bond with a YTM of 14 percent and 20 years until maturity if it compounded annually. a. $67.78 b. $112.67 c. $89.08 d. $72.76 5. Determine the rate of return on a $10,000 investment that generated cashflows of $1,740.64 per year for 8 years. a. 8 percent b. 7 percent c. 10 percent d. 12 percent
1. Determine the present value of $1,500 to be received at the end of 10 years if the compound rate of interest is 9 percent.
a. $710.25
b. $583.12
c. $633.62
d. $674.00
2. Determine the present value of the following cashflows if the assumed discount rate is 14 percent. Year 1: $1000; Year 2: -$500; Year 3: $2000 and Year 4: -$600.
a. $1,710.15
b. $1,487.15
c. $1,601.85
d. $2,197.65
3.Determine the present value of the following cashflows if the assumed discount rate is 9 percent. Year 1: $1000; Year 2: -$1500; Year 3: $2000 and Year 4: -$1000.
a. $1,600.25
b. $1,800.15
c. $1,715.60
d. $1,450.70
4. Determine the price of a $1000 face
a. $67.78
b. $112.67
c. $89.08
d. $72.76
5. Determine the
a. 8 percent
b. 7 percent
c. 10 percent
d. 12 percent
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