What is the present value of a $1000 bond paying $50 at the end of each year for the next 7 years when the market interest rate is 5%, please show the graph.
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What is the present value of a $1000 bond paying $50 at the end of each year for the next 7 years when the market interest rate is 5%, please show the graph.
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- Show the complete solution and diagram. A bond with a par value of 1,000 and with a bond rate of 10% payable annually is sold now for 1,080. If the yield is to be 12%, how much should the redemption price be at the end of 8 years?Using the interest bearing note illustration, let us compute the:a. maturity dateb. maturity valuec. If Mr. B sold the note to a banker, say Bank C, that means you have to find the value of the note from the day it was written to the day it was sold. Mr. B sold the note on March 7, 2010 at 10% discount rate, find the proceeds of Mr. B from the sale.The following indices monitor the annual profits of J.A company. year 1 2 3 4 5 6 7 8 Index 1 Index 2 100 138 162 196 220 100 125 140 165 What are the base years for the indices? If the company had not changed to index 2, what values would index 1 have in year 6 to 8? What values does index 2 have in year1 to 4? If the company made a profit of $4.86 million in year 1, how much did it make in the other years? Answer all 4 part please it's request
- The market for a product is expected to increase at an annual rate of 6%. First-year sales are estimated at $45,000, the horizon is 12 years, and the interest rate is 8%. What is the present value?What would be the selling price of a 10-year bond with a face value of 100000, interest at 20% which is paid quaterly if an investor desires to earn a 16% nominal interest on 100000 worth of these bonds?If a bond with a normal value (N) of £100 and a coupon of 2.5% can be bought a a market price (P) of £97.50, what is the yield on the bond?
- Dr. Smith, a new professor, makes $85,000 his first year. He is guaranteed 7 years of employment at the university. Each year his salary increases at a rate of 8 percent. The interest rate is 5 percent. Show Dr. Smith’s discounted stream of earnings over this seven- year period and use these figures to calculate the present value.A child is promised to be given by his mother Ᵽ 5000.00 7.5 years from today. The interest rate is 7.25%. What is the present value of the amount? What is the present value of a 15 year investment amounting to Ᵽ 45,670 if the prevailing interest is 2.5%? Based on Item No. 2 compute for the present value of Ᵽ 45,670 in 20, 22 and 25 years if the interest rates are 5.5%, 6.8% and 9.80% respectively.You are going to get %10,000,000 in 45 years' time. What is the value of that money today assuming an interest rate of 39% (annual rate) is discounted monthly?
- Suppose a 3 year bond with a 6% coupon rate that was purchased for $760 and had a promised yield of 8%. Suppose that interest rates increased and the price of the bond declined. Displeased, you sold the bond for 798.8 after having owned it for 1 year. What should be the realized yield ?Janine and John share profits of their partnership in the ratio of 2:3. If Janine's share in the profit for last year was P 30,000.00, how much was John's share in the profit of the business?what is the present value of a loan when a monthly payment of ₱3,250 is needed to extinguish for 3.5 years at 17.5% interest?
