What would you pay for a $100,000 debenture bond that matures in 15 years and pays $10,000 a year in interest if you wanted to earn a yield of? 8%?
Q: With $10,000 available, you have two investment options. The first option is to buy a certificate of…
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Q: The amount of the prospective investor pay for a bond if he desires an 13% return on his investment…
A: Redemption amount (R) = P 40000 Annual interest (A) = P 1200 n = 20 years r = 13%
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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: Return is the money made on an investment over a period of time.
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A: Present value refers to the current valuation for a future sum. Investors determine the present…
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A: Using excel PMT & FV Function
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A:
Q: You want to buy a 9 year bond with a maturity value of $3,000, and you wish to get a return of 5.5%…
A: Using excel PV function
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A: A study that proves that the future worth of the money is lower than its current value due to…
Q: A bond promises to you 7000 in 10 years. If you are able to earn 6 percent on securities of equal…
A: Future Value = 7000 N = 10 Rate = 6%
Q: What would you pay for a $175,000 debenture bond that matures in 15 years and pays $8,750 a year in…
A: Issue price of the debenture = Present value of principal + Present value of interest payments…
Q: A man wants to make 14% nominal interest compounded semiannually on a bond investment. how much…
A: Bonds are the debt securities which are issued by the corporations or the government to arrange the…
Q: What would you pay for a $205,000 debenture bond that matures in 15 years and pays $10,250 a year in…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
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: You plan to invest in bonds that pay 3.25%, compounded annually. If you invest $10,000 today, how…
A: Given: Interest rate is 3.25% Present value $10,000 Future value = $30,000 Number of years =?
Q: What would you pay for a $205,000 debenture bond that matures in 15 years and pays $10,250 a year in…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
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: You want to buy a 10-year bond with a maturity value of $2,000, and you wish to get a return of 5.5%…
A: Present value is the value of money today is worth more than that same amount in the future. It is…
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A: solution given Future value 5000 Number of years 20 Interest rate 7% Present…
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A: To calculate the payment at the end of each we will use below formula Annual payment = PV*r Where…
Q: You purchased a $1000 10-year bond that pays $95 annually. If current interest rates are 11.25%,…
A: Yield to maturity Years 10 coupon amount (PMT) 95 Face value (FV) 1000 Yield rate 11.25%…
Q: What would you pay for a $205,000 debenture bond that matures in 15 years and pays $10,250 a year in…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: What is the present value of a security that will pay $29,000 in 20 yearsif securities of equal risk…
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Q: Ms. Jones want to make 12% nominal interest compunded quarterly on a bond investment. She has an…
A: Bond price is present discounted value of future cash stream generated by bond. It is the sum total…
Q: You purchased a $1000 10-year bond that pays $95 annually. If the present value of the bond is…
A: Yield to maturity Years 10 coupon amount (PMT) 95 Face value (FV) 1000 Present value 1050
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A: Using excel FV and PMT function
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A: Bond Price: It is the price paid by the bondholder for investing in the bond. Bond price is…
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A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: A man wants to make 16% nominal interest compounded semiannually on a bond investment. How much (in…
A: The amount to be paid now will be the present value of the future coupon and principal payments.
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A: Calculation of monthly withdrawal amount: Answer: Monthly withdrawal amount is $3113.04
Q: You are planning to save for retirement over the next 35 years. To do this, you will inves $870 per…
A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…
Q: You are planning to save for retirement over the next 30 years. To do this, you will invest K700 a…
A: Time Period 30 Stock Return 10% Bond Return 6% Amount In Stock K 700.00 Amount In…
Q: A man wants to make 14% nominal interest compounded quarterly on a bond investment. How much should…
A: Face value = Php 10000 The bond pays quarterly interest. Hence, Coupon = (12% of 10000) / 4 = Php…
Q: You purchased a $1000 10-year bond that pays $95 annually. If current interest rates are at 9.5%,…
A: Yield to maturity Years 10 coupon amount (PMT) 95 Face value (FV) 1000 Yield rate 9.50%
Q: You are planning to save for retirement over the next 25 years. To do this, you will invest $760 per…
A: Savings Time Period = 25 years or 300 months Investment in stock per month = 760 Investment in bond…
Q: What would you pay for a $100,000 debenture bond that matures in 15 years and pays $5,000 a year in…
A: A bond is issued by the company to raise capital at a fixed interest rate on loan term agreement…
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: How much (in dollars) will you pay?
A: Price of Bond: It is the price at which the bondholder purchases the bond for holding it till…
Q: What would you pay for a $65,000 debenture bond that matures in 10 years and pays $9,100 a year in…
A: A bond is an instrument that represents the loan that is made by the investor to the company and…
Q: You are considering purchasing a 15-year bond for $2400. If the coupon rate is 5.6% APR paid…
A: Total interest during the life of bonds = Principal value * Interest rate * Years
Q: A man was offered a bond with a face value of ₱1,000,000 which has interest of 8% per year payable…
A: The term bonds refer to the debt instruments that are issued with a motive to raise debt from the…
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- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityIf you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%You plan to invest in bonds that pay 3.25%, compounded annually. If you invest $10,000 today, how many years will it take for your investment to grow to $30,000?
- 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.You are planning to save for retirement over the next 20 years. To do this, you will invest $700 a month in a stock account and $400 a month in a bond account. The return of the stock account is expected to be 9 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account with a return of 8 percent. How much can you withdraw each month from your account assuming a 15-year withdrawal period? A. $623407 B. $630939 C. $635876 D. $7480888 E. $2259917You wish to purchase a $1,000 bond from a friend who needs the money. There are 7 years remaining until the bond matures, and interest payments are quarterly. You decide to offer $750.08 for the bond because you want to earn exactly 16% per year compounded quarterly on the investment. What is the annual bond rate of interest?
- A man was offered a bond with a face value of ₱1,000,000 which has interest of 8% per year payable semi –annually and due in 10 years. If he wants to earn 6% semi –annually, how much must he pay the bond? Solve and show the solution.You plan to invest in securities that pay 6.2%, compounded annually. If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20? answer should be in figure only & in hundredths placeYou are planning to save for retirement over the next 30 years. To do this, you will invest$700 a month in a stock account and $300 a month in a bond account. The return of thestock account is expected to be 10 percent, and the bond account will pay 6 percent.When you retire, you will combine your money into an account with an 8 percent return.How much can you withdraw each month from your account assuming a 25-yearwithdrawal period?