What is the present value of a security that will pay $10,000 in 20 years if securities of equal risk pay 10% annually? Do not round intermediate calculations. Round your answer to the nearest cent.

Q: With $10,000 available, you have two investment options. The first option is to buy a certificate of…

A: Bond is one of debt security which is issued by corporations or government for financing. It…

Q: What is the present value of a security that will pay $14,000 in 20 years if securities of equal…

A: Present value is the value of the amount in current times that is expected to be received in future…

Q: has a $1,000 par value, 10 years to maturity, and an 8% annual coupon and sells for $980. a. What is…

A: Par value =$1000 Time  =10 years Coupon rate =10% So, coupon payment =0.1*1000 =$100 Present values…

Q: What is the present value of a security that will pay the amount shown below in 20 years? Securities…

A: Present value refers to the current valuation for a future sum. Investors determine the present…

Q: You are considering an investment in a 40-year security. The security will pay $25 a year at the end…

A: the present value of an annuity is discounting the cash flow of all future payments or receipts in…

Q: What would be the price of 10 years bond with face value Rs 1000, coupon rate of 10% and required…

A: Bond is a fixed income instrument, debt instrument by investor to a borrower.

Q: ABC Corporation wishes to raise money by selling a 90-day promissory note in the short-term money…

A: Solution Given Maturity period of note 90 days Amount payable at maturity 17000000…

Q: What is the present value of a security that will pay $7,000 in 20 years if securities of equal risk…

A: Given: Future value (FV) = 7000 Number of years (n) = 20 Interest rate (r) = 7% = 0.07

Q: You are considering investing in a security that will pay you $4,000 in 29 years. If the appropriate…

A: The current value of a future sum of money at a given rate of return is called present value. The…

Q: You have $5,000 to invest for the next year and are considering three alternatives:a. A money market…

A: We can explain the role that our forecast of future interest would play in our decisions as follows:

Q: On the London Metals Exchange, the price for copper to be delivered in one year is $5,740 a ton.…

A: Expected rate of return(r)=Risk free interest rate+Beta×Expected market return-Risk free interest…

Q: You attempt to finance a 10-year guaranteed investment contract (GIC). The payment made by…

A: given   GIC is 5%. The bond you want to use is a 15-year, 5% annual coupon rate bond (semiannually…

Q: What is the price of a Treasury STRIPS with a face value of $100 that matures in 15 years and has a…

A: Formula Price = FV/(1+R)N Where FV - Face value i.e. $100 R - Yield rate i.e. 7.0% N - Period i.e.…

Q: What would be the price of 10 years bond with face value Rs 5000, coupon rate of 10% and required…

A: One of the methods of bond valuation is the discounting cash flow method. Under this method, all the…

Q: Suppose you borrow RM10,000,000 in the interbank money market at a KLIBOR yield of 6% p.a for aterm…

A: AS per the given data

Q: What is the present value of a security that will pay $3,000 in 20 years if securities of equal risk…

A: The Formula to Calculate the Present Value  =Future Value x 1/(1 + Rate of Interest)^Period (in…

Q: What is the present value of a security that will pay $5000 in 20 years if securities of equal risk…

A: Calculation of Present Value:The present value is $1,292.10. Excel Spreadsheet:

Q: What is the present value of a security that will pay $2,000 at the end of each year for 6 years if…

A: The present value can be calculated as follows if the payments are made at the end : Calculations…

Q: a If current interest rate is 28%, a Treasury Bill with 91 days to maturity, and a face value of GH¢…

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

Q: What is the present value of a security that will pay $14,000 in 20 years if securities of equal…

A: The Present Value of a security is the present worth of an amount to be received at a future date.…

Q: What is the present value of a security that will pay $11200 in 16 years if securities of equal risk…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: What is the present value of a security that will pay 5, 000 in 20 years if securities of equal risk…

A: solution given Future value 5000 Number of years 20 Interest rate 7% Present…

Q: What is the present value of a security that will pay $17,000 in 20 years if securities of equal…

A: Present value refers to the value of money today. Sometimes, present value is also known as…

Q: A company plans to borrow $10 million for 90 days, 180 days from today. The type of FRA and the…

A: A forward rate agreement between two parties where the interest on a notional principal is…

Q: month. Should you buy or se

A: Introduction : A futures contract can be seen as the legal contract to purchase or sell a certain…

Q: Suppose that a risk-free investment will make three future payments of $100 in one year, $100 in two…

A: Future values in one year, two year and three years are $100 , $100 and $100 respectively.  Rate of…

Q: What is the present value of a security that will pay $29,000 in 20 yearsif securities of equal risk…

A: Present Value is a current value of a future payment. Future cash flows are discounted at the…

Q: What is the present value of a security that will pay $5000 in 20 years if the securities of equal…

A: The present value of the cash flow is the current worth of a cash flow at a certain rate of interest…

Q: What is the present value of a security that will pay $22,000 in 20 years if securities of equal…

A: Future value is total of initial investment plus compound interest on that. Compound interest could…

Q: An investment will pay ¥13,400 in five years.  What is the present value of this investment today…

A: Present value is calculated by discounting the future cash flow at the discount rate.   Present…

Q: PK Ltd issues $8 million in 5-year debentures that pay interest every 6 months at a coupon rate of…

A: Issue price of the debentures = Present value of principal + Present value of interest payments…

Q: present value of a security

A: The present value is the computations used under the concept of the time value of money, where the…

Q: A security that is selling for $3,000 and promises to pay annual interest or $250 forever would have…

A: Calculation of annual yield:Answer:The annual yield of security is 8.333%.

Q: At what annual interest rate would the following have to be invested? i) $500 to grow to $1,948.00…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: What is the present value of a security that will pay $32,000 in 20 years if securities of equal…

A: We need to use the concept of time value of money to solve the question. According to the concept of…

Q: A 330-day T-Bill is currently selling at a discount rate of 3.97%. What will be the price of the…

A: The below expression can be used to calculate the current price of T-bill:

Q: In 2019, Scotiabank's interest rate on GICS was 1% for a 1-yr term and 2.5% for a 10-yr term.…

A: Data given: Rate on GICs for 1 year term=1% Rate on GICs for 10 year term=2.5% Average annual return…

Q: What is the present value of a security that will pay $6,000 in 20 years if securities of equal risk…

A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…

Q: What is the present value of a security that will pay $18,000 in 20 years if securities of equal…

A: Present value is the value of the money in current time that is expected to be received in future…

Q: OLL Ltd has just issued a perpetual (that is, non-maturing) financial security that is expected to…

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: What is the present value of a security that will pay $3,000 in 20 years if securities of equal risk…

A: Present Value: It is the present worth of the future amount and is estimated by discounting the…

Q: Assuming away any risk differential of investing in a two-year security for two years or a on-year…

A: The question posted above assumes that there is no compounding of interest i.e. it is based on…

Q: How much should a $10,000 face- value, zero-coupon bond, maturing in 10 years, be sold for now if…

A: Given: Face value is $10,000 Years = 10 Interest rate = 4.5%

Q: Jaison Ltd issues $8 million in 5-year debentures that pay interest every 6 months at a coupon rate…

A: The issue price of the debenture can be calculated as present value of all payments

Q: What is the present value of a security that will pay $17,000 in 20 years if securities of equal…

A: Present value of a single sum can be calculated by using this equation Present value =Future…

Q: What is the present value of a security that promises to pay you $5,000 in 20 years? Assume that you…

A: It is based on the concept of time value of money. A dollar today is worth ore than a dollar after a…

Q: idering investing in a four year security which pays 6,000 in one year. 6,000 in two years, 6,000 in…

A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.