Question

If a security pays 55 in one year and 144 in three years, its present value...

  1. If a security pays 55 in one year and 144 in three years, its present value is 150 if the interest rate is

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
a) A security pays $100 in one year and $100 in two years. The one-year discount...
a) A security pays $100 in one year and $100 in two years. The one-year discount rate is 4%, the two-year is 4.92%. What is its price? b) What is the “common” discount rate – i.e., the same discount rate is applied to both years – such that it produces the price you calculate in a)? This is known as the security’s “yield-to-maturity” (or “yield”).
1a. If the interest rate is 10%, what is the present value of a security that...
1a. If the interest rate is 10%, what is the present value of a security that pays you $1,100 next year, $1,210 the year after, and $1,331 the year after that? 1b. Calculate the present value of a $1,000 discount bond with five years to maturity is 6%. Make sure to write down the equation you use to find the answer.
A perpetuity pays $390.26 at the start of each year. The present value of this perpetuity...
A perpetuity pays $390.26 at the start of each year. The present value of this perpetuity at an annual effective interest rate i is equal to the present value of an annuity which pays 800 at the start of the first year, 790 at the start of the second year, 780 at the start of the third year and so on for 20 years. Find i to 1 significant figure.
What is the present value of receiving $500 each year for three years at an interest...
What is the present value of receiving $500 each year for three years at an interest rate of 12 percent, compounded annually? (The first receipt is at the end of year)
An investment pays $1500 every three years with the first payment starting one year from now...
An investment pays $1500 every three years with the first payment starting one year from now (i.e., second payment is on t=4). If “effective two year” rate on this project is 10%, estimate the present value of the investment. A. $9,151 B. $9,350 C. $9,766 D. $10,742
What is the present value of a consol that pays $1000 a year, and starts immediately,...
What is the present value of a consol that pays $1000 a year, and starts immediately, if the interest rate is 12%.
Find the present value of a fifteen-year ordinary annuity that pays $1340 monthly if the interest...
Find the present value of a fifteen-year ordinary annuity that pays $1340 monthly if the interest rate is 10% compounded monthly for the first 7 years, and 6% compounded monthly thereafter.
Bond A pays annual coupons pays ins next coupon in one year, matures in 23 years...
Bond A pays annual coupons pays ins next coupon in one year, matures in 23 years and has a face value of one thousand. Bond B pays semi annual coupons pays its next coupon in six months, matures in three years and has a face value of one thousand. The two bonds have the same yield to maturity. Bond A has a coupon rate of 7.70 percent and is priced at $736.19. Bond B has a coupon rate of 6.40...
An annuity immediate pays 200 every month for 10 years. Calculate the present value at the...
An annuity immediate pays 200 every month for 10 years. Calculate the present value at the following rates of interest: Annual effective interest rate of 6% Nominal interest rate convertible monthly of 8% Nominal rate of discount convertible once every two years of 4%
Give the present value of a perpetuity that pays $1,000 at the end of every year....
Give the present value of a perpetuity that pays $1,000 at the end of every year. The first payment occurs at the end of the fifth year and the annual effective interest rate is 3%.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT