Calculate the present value of a $1,000 zero-coupon bond with six years to maturity if the yield to maturity is 7%
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Calculate the present value of a $1,000 zero-coupon bond with six years to maturity if the yield to maturity is 7%.
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- A certificate of deposit will often result in a penalty for withdrawing funds before the maturity date. If the penalty involves two months of interest, what would be the amount for early withdrawal on a CD worth $24,000 at 5 percent?At age 25, Anthony establishes an Individual Retirement Account (IRA). If he invests P10,000 per year for 30 years in an ordinary annuity, the account earns 7.75% per year, how much will he have in the account at age 55?A 15-year annuity pays $1,500 per month, and paymentsare made at the end of each month. If the interest rate is 12 percent compoundedmonthly for the first seven years, and 6 percent compounded monthly thereafter,what is the present value of the annuity?
- You are managing a portfolio of $1 million. Your target duration is 11 years, and you can choose from two assets: a zero coupon bond with maturity 5 years, and a perpetuity, the yield is: A. .688 B. .417 C. .583 D. .312Ana de la Cruz expects to receive P20,940 at the beginning of each period per year in Social Security payments. Assume that she receives these payments for 28 years and use a rate of 6% per year. Find the present value of her retirement payments.A 5-year annuity of ten $5,300 semiannual paymentswill begin 9 years from now, with the first payment coming 9.5 years from now. If thediscount rate is 12 percent compounded monthly, what is the value of this annuityfive years from now? What is the value three years from now? What is the currentvalue of the annuity?