Week 4 Quiz

Topics: Bond, Stock, Finance Pages: 5 (497 words) Published: September 15, 2014
future Value of 10,000 for 30 years at 7%

$76,122.55 paying 10,0000 enter it as a negative

Develop Model
inputsQuiz
rate7%12%
nper306
pmt0-3500
pv-100000
output
fv$76,122.55 $28,403.16
Quiz

pv= fv1591.01654851145510048.245615000045045.04505 Find the present value of 30 payments of $1000 assuming a discount rate of 7%pv=fv2581.23613281637612600.800257500060871.68249

pv=fv3591.91168281981213372.5356812500091398.92266
639.6884114764336021.58154250000164682.7435
$12,409.04 Quiz2403.852775500000361998.3937

rate7%15%
nper305
pmt-1000-37250
pv00
output
PV$12,409.04 $124,867.78

If you invested $2400 per year for 30 years, and your employer matched your contribution, what rate would you need to earn to accumulate $1,000,000?

11.24%

nper30
pmt-4800
pv0
FV1000000
Rate11.24%

Suppose you plan to save for a new home for 10 years. If your goal is to have $50,000 at the end of 10 years and you can earn 8% how much do you need to save each year?

inputs
rate8%
nper10years
pv0
fv50000
outputs
pmt($3,451.47)

Assume you invest $2400 per year and your employer matches your contribution. If you can earn a return of 7%, how many years would you need to invest to accumulate $1,000,000

inputs
rate7%
pmt-4800
pv0
fv1000000
outputs
nper 40.6
Find the Value of a $1000 par value bond with a coupon rate of 7.5% annual interest and 4 years to maturity if the current yield to maturity is 7.25%

inputsQuiz
par value =fv1000par value =fv1000
coupon rate7.5%coupon rate7.0%
nper4periodsnper10periods
ytm7.25%yeild to maturityytm9.00%yeild to maturity calc
pmt75pmt70
output
price = ov($1,008.42)price = ov($871.65)

Find the yield to maturity of a $1000 par value bond with a coupon rate of 9.5%, annual interest 10 years to maturity and current price of $1035

inputs
par value =fv1000
coupon rate9.5%
nper10
price = pv $(1,035.00)
calc
pmt $95.00
output
ytm8.956%

Now suppose that today is March 1, 2009 and you are contemplating the purchase of a $1000 par value bond that will mature on Dec 31, 2018.(Exact dates) The coupon rate on the bond is 6.5% and interest is paid semi-annually. Find the current price, assuming the current yield is 6.1%

inputs...
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