eBook What is the present value of a security that will pay $37,000 in 20 years if securities of equal risk pay 11% annually? Do not round intermediate calculations. Round your answer to the nearest cent.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter6: Fixed-income Securities: Characteristics And Valuation
Section: Chapter Questions
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What is the present value of a security that will pay $37,000 in 20 years if securities of equal risk pay 11% annually? Do not round intermediate calculations. Round your
answer to the nearest cent.
2$
Transcribed Image Text:Check My Work eBook What is the present value of a security that will pay $37,000 in 20 years if securities of equal risk pay 11% annually? Do not round intermediate calculations. Round your answer to the nearest cent. 2$
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Discount Factor:

Discount Factor is a determinant that finds out the present value of future cash flows. Discounting is the main factor that is used in discounting the flow cash. Discount Factor is computed by aggregating the discount rates to one and raising the rate to present value compounded for the number of periods.

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