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.
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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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- What is the present value of a security that will pay $32,000 in 20 years if securities of equal risk pay 5% annually? Do not round intermediate calculations. Round your answer to the nearest centWhat is the present value of a security that will pay $40,000 in 20 years if securities of equal risk pay 6% annually? Round your answer to the nearest cent.Please show working. Please answer a, b and c a. What is the present value of a security that will pay $4,000 in 20 years if securities of equal risk pay 5% annually? Do not round intermediate calculations. Round your answer to the nearest cent. ______ b. You have $45,312.74 in a brokerage account, and you plan to deposit an additional $3,000 at the end of every future year until your account totals $230,000. You expect to earn 10% annually on the account. How many years will it take to reach your goal? Round your answer to the nearest whole number. _________ c. If you deposit money today in an account that pays 3.5% annual interest, how long will it take to double your money? Round your answer to two decimal places. ___________ years
- What is the present value of a security that will pay $29,000 in 20 yearsif securities of equal risk pay 5% annually?What is the present value of a security that promises to pay you $15,000 in 10 years? Assume that you earn 5% compounded quarterly if you were to invest in other securities of equal risk.What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7%?
- you are considering investing in a four year security which pays 6,000 in one year. 6,000 in two years, 6,000 in 3 years and 17,500 in 4 years. the security currently trades at a price of of 18,483.77. What is the yield to maturity of the security? What is duration?An investor buys a ($1000 FV) Treasury Strip security with 11 years to maturity at a yield of 5.1%. Two years later the yield to maturity on the strip is 4.0% and the investor decides to sell. What is the compounded annual rate of return on the investment over the investment horizon? For simplicity assume all yields in the question are quoted with annual compounding. Enter your answer as percent to two decimal places, but do not include the % sign.What is the present value of a security that will pay $5000 in 20 years if securities of equal risk pay 7 percent annually?