a) Consider an investment which, for an initial charge of £10,000, returns £10,700 after three years. What is the internal rate of return of this investment? Enter your answer as a percentage to three significant figures. Do not enter the % sign. For example, if your answer is 1.23%, then enter 1.23. b) Suppose that an investment has internal rate of return 1.05% and that the current interest rate compounded annually is 1.1% Is the investment worth making?

Q: Suppose that $1,000 is invested quarterly at 6% interest, compounded quarterly. How much will be in…

A: The information given to us is as follows:- Investment done = $1000 Interest rate = 6% ( Compounded…

Q: Two bonds have identical times to maturity, face value, and coupon rates. The current price of the…

A: The issuer of a callable bond has the option to call the bond before its maturity date. The issuer…

Q: What is the simple interest rate applied if an investment of P17,660 accumulates to P23,605 in the…

A: Present value is P17660 and future value is P23605 Present value is invested for 6 years at interest…

Q: How long will it take for an investment of $32,000 in a mutual fund to mature to at least $100,000…

A: Initial investment = $32,000Mature amount =$100,000Growing rate = 12% compounded semi…

Q: Consider a training program that will result in a worker receiving a one time bonus of $2,900 two…

A: Given future worth = 2900 Time = 2 years Present cost = 2000

Q: Suppose an amount of P300,045 is invested in 19 years at 7.37% per year. How much is the earning of…

A:

Q: Find the accumulated future value of each continuous income stream at rate R(t), for the given time…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Today, you invest ₱100,000 into a fund that pays 25% interest compounded annually. Three years…

A: The realistic portrayal of each money related esteem with time is known as cash flow diagram. The…

Q: What will be the future worth of money after 27 months if a sum of P96,425 is invested today at a…

A: Present worth = 96425 Interest rate = 10% Time = 27 months convert in year = 27/12 = 2.25 year

Q: A bond with face value of P10,000 with a bond rate of 5% payable annually is to be redeemed after 10…

A: Face value alludes to the dollar value of a monetary instrument when it is given. The face value of…

Q: You want to open a savings plan for your future retirement. You are considering the following two…

A: When the individual chooses option 1, he will be making $1,000 per quarter deposit for the first 10…

Q: Please provide a step by step solution A bond with a par value of P2,000 and with a bond rate of 9%…

A: Per value of bond = P2000 Bond rate = 9% Interest payment = 2000 x 9% = 180 Redeemable price = P2200…

Q: 2.0%? b) Given the selling price from part (a), what was your annual rate of return from owning this…

A: The annual rate of return is the percentage change in the value of an investment. For example: If…

Q: Today, you invest ₱100,000 into a fund that pays 25% interest compounded annually. Three years…

A: Compound interest is the interest on a loan or deposit calculated using the starting principal and…

Q: Henry has a five-year 1,000,000 bond with coupons at 6% convertible semi-annually. Fiona buys a…

A:

Q: Using the expectation theory of the yield curve, calculate the approximate expected short term…

A: According to the expectation theory, the current yields on bonds with different maturities reflects…

Q: A bond with a par value of 1000.00 and with a bond rate of 9% payable annually is to be redeemed at…

A: A product's or service's selling price is the seller's final price, or how much the buyer pays for…

Q: $4250 is invested for 6 years and grows to $14 740.               Find the interest rate if interest…

A: The principal would be the amount of money which is received at the end of the time period with the…

Q: To make CDs look more attractive as an investment than they really are, some banks advertise that…

A: We are going to find the compounding interest rate to answer this question. Note: As per Bartleby…

Q: A man wishes to have P2,000,000 20 years from now. If the interest rate is at 8% compounded…

A: Present value of future worth at the end of year 10 = 2000000 / (1 + 8%)^10 years = 926386.98 $ Now,…

Q: Calculate the bond yield rate % for a bond with an actual interest payment of $200 and a market…

A: Bond yield is the return gain from the coupon payments of the bond to the inventor.

Q: What is the current value of a security that pays P165,500 per year for 10 years if similar…

A: The present value of future payments from an annuity, assuming a defined rate of return, or discount…

Q: Calculate the present value of a $1,300 discount bondwith seven years to maturity if the yield to…

A: Formula for calculating present value is shown below. Present value = Future value / (1 + interest…

Q: What is the present value of a P90,000 annual annuity for 10 years with an additional P1,000,000…

A: According to the question given,  Amount = P 90,000 Time = 10 years Rate of interest = 8% = 0.08…

Q: What are the annual payments necessary to pay a P1,000,000, 12-year loan if the loan rate is 8 %? *…

A: The term "annual payment" refers to all payments made on a yearly basis. Because of the nature of…

Q: The yield-to-maturity of a discount bond is always negative.   True   False

A: In a market, bonds the the monetary instruments that are issued by the firms and demanded by the…

Q: Making the assumption of no compounding interest , suppose you purchase a perpetuity bond from…

A: Firstly we have to calculate  Yearly Return  Yearly return = Face value x Coupon rate =…

Q: Lucy Lampkin wants to purchase a bond with a face value of $7,000 and a bond rate of 7.5 percent per…

A: Face value is a financial term used to describe the nominal or dollar value of a security, as stated…

Q: Assume that the real interest rate is 10%. A firm can invest in a piece of machinery that will…

A: PV factor in year N = (1.10)N. PDV in year N = Cash flow in year N x PV factor in year N

Q: How many years will it take to triple your investment of $5,000 if it has an interest rate of 10%…

A: Information given to us is:- Investment = $5000 Interest rate = 10% compounded annually We have to…

Q: A company invested ₱ 400,000 presently and expected a revenue of “x” at the end of years one and…

A: Initial investment = 400000 Annuity amount = x Interest rate = 14%

Q: A man wishes to have P2,000,000 20 years from now. If the interest rate is at 8% compounded…

A: To calculate the annual payment set aside for 10 years, find the present value at the end of year 10…

Q: Suppose you purchase a $10,000 face value zero-coupon bond and hold it to maturity, a term of 10…

A: Face value = 10000 $ Time = 10 Years Current price = 8072 YTM = (10000 / 8072)^1/10 – 1 * 100 = 2.16…

Q: If the face value of a 91-day Treasury Bill is £100000 and it is issued at a discount of £2300, what…

A: Discount rate =(F-M)F×365tM=Market value of bill=100000-2300=97700F=Face valuet=Days until…

Q: The sugar bank gives a home loan at an annual interest of 15%. Loan amount is one hundred thousand…

A: Given  The annual interest = 15%. Principle amount = 100000  Time = 6 years.

Q: A company has issued a 20 year bonds, with a face value of $50,000 interest at 8% is paid quarterly.…

A: here we find the purchase price  of the bond by following method as

Q: Determine the principal P that must be invested at rate  r = 3 1 2%,  compounded monthly, so that…

A: Given that, A = $500,000  Rate of interest (r) = 3×1/2% = 7/2% = 0.035  Time period (t) = 17…

Q: Today, you invest P100,000 into a fund that pays 25% interest compounded annually. Three years later…

A: Interest refers to the additional amount paid back by the borrower in excess of the borrowed amount…

Q: 9.76 percent and the face value is $1,000

A:

Q: Trial and error is the only way to compute the internal rate of return (IRR) when interest is…

A: IRR stands for internal rate of return. It is the method that is used to measure the profitability…

Q: A businessman borrows money of $ 200,000 from the bank to be repaid in three years by a single…

A: Here, it is given that a specific amount of money is borrowed for three years at 12% interest rate.…

Q: A Php 1,500-bond which will mature in 10 years and with a bond rate of 15% payable annually is to be…

A: Given, Bond Price- Php 1500 Time- 10 years Rate- 15% Selling price- Php-1300

Q: (Round your response to the nearest penny.) ds are expected to change to 10%, what is the current…

A: *Answer:

Q: suppose that you invest $100 today in a risk-free investment and let the 4 percent annual intrest…

A: Here we calculate the value of $100 after the 4 year using the future value formula which are as…

Q: Define the term effective interest rate, commonly known as annual effective yield, or annual…

A: The interest rate is the rate which is charged by the bank to the borrowers. It is some portion of…

Q: A corporate bond pays 6% of its face value once per year. If this $10,000 10-year bond sells now for…

A: Yield to maturity (YTM): The yield to maturity (YTM) of a bond is the total return expected if the…

Q: Find the amount due at the end of 15 months whose present value is P2,000 at 5% simple discount.…

A: Present worth is the idea that expresses a measure of cash today is worth more than that equivalent…