Question

1. If you require a rate of return of 16.5%, how much would the future value...

1.

If you require a rate of return of 16.5%, how much would the future value be at the end of the last year from the following cash flow stream?

Answer just the dollar amount without the + or - sign. Round to the nearest dollar.

Years:

0

1

2

3

4

CFs:

$0

$75

$225

$0

$300

​2.

What annual payment must you receive in order to earn a 6.5% rate of return on a perpetuity that has a cost of $1,000?

Answer just the dollar amount without the + or - sign. Round to the nearest dollar.

3. Suppose a bond will pay $4,500 ten years from now. If the going interest rate is 5.70% for this bond's risk class, how much is the bond worth today?

Answer just the dollar amount without the + or - sign. Round to the nearest dollar.

4. You want to commercialize your innovation 4 years from now, and you plan to save $5,900 per year, beginning immediately. You will make a total of 4 such deposits in an account that pays 5.7% interest. How much will you have 4 years from today?

Answer just the dollar amount without the + or - sign. Round to the nearest dollar.

Homework Answers

Answer #1

1)

2)annuity= perputity*ROI

=$1000*6.5%

=$65

3)bond price = maturity vlaue/(1+ytm)n

=$4500/(1.057)10

=4500/1.7408

=$2485.01

4)

plz leave positive rating tnak you

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