A company has issued 12-year bonds, with face value of 1,500,000 in 1,000 units. Interest at 16% is paid quarterly. If an investor desires to earn 22% nominal interest on 150,000 worth of these bonds, what would the selling price have to be? a.Php 122,387.456 b.Php 124,376.465 c.Php 112,222.044 d.Php 145,276.354
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- Suppose you purchased a corporate bond with a 10-year maturity, a $1,000 par value, a 9% coupon rate ($45 interest payment every six months), and semiannual interest payments. Five years after the bonds were purchased, the going rate of interest on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (five years after the purchase)?(a) P = $890(b) p = $1,223(c) P = $1,090(d) p = $1,128A business takes out a simple interest loan of Php 100,000 at a rate of 7.5%. What is the total amount the business will repay if the loan is for 8 years? 3. An investment earns 3% compounded monthly. Find the value of an initial investment of Php 5,000 after 6 years. 4. What is the value of an investment of Php 3,500 after 2 years if it earns 1.5% compounded quarterly? 5. Mr. Ceballos purchased a statue for Php 2,500. Ten years later, he sold this statue for Php 7,500. If the statue is viewed as an investment, what annual rate did he earn? 6. How many years will it take for an investment to be twice its value if it earns 8% compounded annually?Today, you invest Php 100,000 into a fund that pays 25% interest compounded annually. Three years later, you borrow Php 50,000 from a bank at 20% annual interest and invest in the fund. Two years later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal you start taking Php 25,000 per year out of the fund. After five withdrawals, you withdraw the balance in the fund. How much was withdrawn? Show cashflow diagram and complete solution manually.
- An investor invests the following amounts of money in a bank account: R18,850 on 1 September 2019 , R15,575 on 31 May 2021 and R19,465 on 1 February 2023. From 1 October 2021 up to 30 April 2023 an amount of R980 is invested at the start of every month. From 1 July 2020 up to 31 March 2022 an amount of RX is invested at the end of each quarter. On 1 January 2019 the total present value of all the investments is R75,998.34. If the interest rate is 8.75% per year, calculate the value of X (annuity invested every quarter)The gaming commission is introducing a new lottery game called Infinite Progresso. The winner of the Infinite Progresso jackpot will receive $600 at the end of January, $1,600 at the end of February, $2,600 at the end of March, and so on up to $11,600 at the end of December. At the beginning of the next year, the sequence repeats starting at $600 in January and ending at $11,600 in December. This annual sequence of payments repeats indefinitely. If the gaming commission expects to sell a minimum of 1,150,000 tickets, what is the minimum price they can charge for the tickets to break even, assuming the commission earns 3.00% /per/year/month on its investments and there is exactly one winning ticket?Find the amount due at the end of 15 months if the present value is PHP 18,000 and if;the simple interest rate is 5%?the discount rate is 5%?
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- You are considering investing in ICI. Suppose ICI is currently undergoing expansion and is not expected to change its cash dividend while expanding for the next 4 years. This means that its current annual $3.00 dividend will remain for the next 4 years. After the expansion is completed, higher earnings are expected to result causing a 30% increase in dividends each year for 3 years. After these three years of 30% growth, the dividend growth rate is expected to be 2% per year forever. If the required return for ICI commonstock is 11%, what is a share worth today?Based on the following scenario, what is the NPV of ABC inc.? Expected annual growth: 10.5%, Weighted average cost of capital: 19.9%. Years of cash flow to include: 25 years. Cash flow from operations: $850,000 in total, Cash flow from investing: -$14,750 in total The business NPV is valued at $10,370,130. The business NPV is valued at $7,474,184. The business NPV is valued at $8,818,948. The business NPV is valued at $9,270,043.A woman is considering giving an endowment to a university in order to provide payments of Php 55194 , Php 86992, respectively, at the end of the first, and second semiannual during a year. If the interest rate is 12% compounded quarterly, what is the capitalized equivalent that must be deposited now so that the semiannual payments can be repeated forever? Round your answer to 2 decimal places.