What is the present value of a security that will pay $3,000 in 20 years if securities of equal risk pay 5% annually? Do not round intermediate calculations. Round your answer to the nearest cent.
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A: Given: Future value (FV) = 7000 Number of years (n) = 20 Interest rate (r) = 7% = 0.07
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A: Calculate the present value as follows: Present value = Future value / (1+rate)^years
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A: Calculation of Present Value:The present value is $1,292.10. Excel Spreadsheet:
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Q: a. What is the present value of a security that will pay $4,000 in 20 years if securities of equal…
A: a) Present value = Future value /(1+rate)^years
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…
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A: solution given Future value 5000 Number of years 20 Interest rate 7% Present…
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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…
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Q: present value of a security
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A: The formula used as follows: Present value=Future value1+rt
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A: Given: Interest rate = 1.9% Periods = 1 Face value = $10,000
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A: We need to use excel PV function to calculate price of bond
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…
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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 7% annually? Do not round intermediate calculations. 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. ___________ years2. It is now January 1, 2x16, and you will need P100,000 on January 1, 2x20. Your bank compounds interest at an 8% annual rate. How much must you deposit today to have a balance of P100,000 on January 1, 2x20? 4. What is the present value of a security that will pay P290,000 in 20 years if securities of equal risk pay 5% annually? 5. What is the future value of a 5%, 5-year ordinary annuity that pays P8,000 each year? If this was an annuity due, what would be its future value?
- B. J. Gautney Enterprises is evaluating a security. One-year Treasury bills are currently paying 2.9 percent. Calculate the investment's expected return and its standard deviation. Should Gautney invest in this security? Probability Return0.15 -3%0.30 2%0.40 4%0.15 6% The investment's standard deviation is _______ % . round to two decimal placesSuppose tnat ABC bank decides to purchase a T-note and convert it into a STRIP. The T-note has a maturity of 6 years, pays a 6% coupon rate (semiannual) and a face value of $10,000. How many separate securities can be created? O 6O7O 12O13Only typed answer Suppose that the current 4-year treasury security rate is 5.5 percent and the 1-year treasury rate is 3.75 percent. According to the unbiased expectations theory, what should be the 3-year expected rate 1-year from now? Group of answer choices 6.09% 6.39% 5.88% 4.74%
- Assume investors are indifferent among security maturities. Today, the annualized 2-year interest rate is 2.20 percent, and the 1-year interest rate is 2 percent. What is the forward rate according to the pure expectations theory? Group of answer choices 2.25% 2.20% 2.00% 2.40%Calculate with Financial Calculator: Semiannual compounding, zero coupon bond with 15 years, maturity paying $1,000 at maturity if the: YTM is 7%, what is the price? = $362.45 YTM is 11%, what is the price (PV)? = $209.00 YTM is 15%, what is the price (PV)? = $141.33 My answers are incorrect. I need to understand what I am doing incorrectly on the FC.Consider two securities that pay risk-free cash flows over the next two years and that have the current market prices shown here: Security Price Today Cash Flow in One Year Cash Flow in Two Years B1 $192 $200 0 B2 $176 0 $200 What is the no-arbitrage price of a security that pays cash flows of $200 in one year and $200 in two years? What is the no-arbitrage price of a security that pays cash flows of $200 in one year and $1600 in two years? Suppose a security with cash flows of $100 in one year and $200 in two years is trading for a price of $260. What arbitrage opportunity is available?