2. You can deposit $10,000 into an account paying 9% annual interest either today or exactly 10 years from today. How much better off will you be at the end of 40 years if you decide to make the initial deposit today rather than 10 years from today?…
4. A $1,000 face value bond currently has a yield to maturity of 8.89 percent. The bond matures in 7 years and pays interest annually. The coupon rate is 9 percent. What is the current price of this bond?…
2. What is the total present value of the following cash stream, discounted at 8 percent? (5 points)…
9. Merry had $20,000 to invest. She invested part of this money in bonds paying 10% annual simple interest and the rest of the money in a savings account giving 5% annual interest. At the end of the year, she received $1,800 as extra income. How much money did merry place in the…
3. Assume that 11% is the market rate of interest in on January 1, 1975. Compute the present value at January 1, 1975 of all payments that will be made on the 5% bonds if they are not retired.…
Bonds-3. A certain bond pays a semiannual coupon rate at a 10% annual rate. The bond has a par value of $1,000. There are eight years to maturity. The yield to maturity is 9%. What is the current price of the bond?…
17. Gordon and Lisa estimate that they will need $1,875,000 in 40 yrs. For their retirement years. If they can earn 8% annually on their funds, how much do they need to save annually?…
3. (FV of annuity due) To finance your newborn daughter’s education you deposit $1,200 a year at the beginning of each of the next 18 years in an account paying 8% annual interest. How much will be in the account at the end of the 18th year?…
4. The Peace and Development Club raised $5000 for a trip to Guatemala in the future. The club invested part of the money in an account that paid 4% simple interest, and the rest in a government bond that paid 3.5% simple interest per year. After one year, the club earned a total of $190 in interest. How much was invested at each rate?…
14) Find the amount of money in an account after 7 years if $3600 is deposited at 8% annual interest compounded annually.…
4. You have an investment of $10,000 in a term deposit account where interest is paid annually at 5% per annum, compounding annually. What will be the nominal value of this investment after two years? 11025…
1. Torvald's Hardware paid a contractor $45,000 to expand the store. The investment increased annual cash inflows by $8,000 per year six years. Torvald's has a desired rate of return of 10%. The net present value of this investment is which of the following? (round to the nearest dollar)…
2.) On January 1, 2010, Haley co. issued ten-year bonds with a face amount of $2,000,000 and a stated interest rate of 8% payable annually on January 1. The bonds were priced to yield 10%. What was the total price of the bonds?…
2)Calculate the amount of your simple interest investment after 10 years. Remember to use the same rate and compounding as in #1.…
(10 points) Don has just received a cash gift of $70,000 from his rich eccentric uncle. He wants to set it aside to pay for his daughter Cynthia's college education. Cynthia will begin college in 10 years and Don's financial advisor says that she can earn 8% interest on an investment in a special college fund. How much will Don have in the fund when Cynthia begins college? (Enter just the number in dollars without the $ sign or a comma and round off decimals.)…