What is the present value of a security

Assignment Help Financial Management
Reference no: EM131313283

Present and Future Value

a. If you deposit $9,000 in a bank account that pays 8% interest annually, how much will be in your account after 5 years? Round your answer to the nearest cent. _________

b. What is the present value of a security that will pay $35,000 in 20 years if securities of equal risk pay 3% annually? Round your answer to the nearest cent. _________

Reference no: EM131313283

Questions Cloud

Discuss advantages and disadvantages of job order costing : Discuss the advantages and disadvantages of Job Order Costing. Be sure to include specific examples of the advantages/disadvantages that you discuss. 150 words.
Why must firms adopt the identified roles : In general, identify senior management's specific role in these large-scale strategic quality programs? Cheerleader? Role model? Decision maker? Resource provider? What else?Why must firms adopt the identified roles? What is the risk of not using t..
What is an alternative name for structured insurance : What is meant by "structured insurance"?- What is an alternative name for structured insurance? -  Give two examples of structured insurance.
Design and implement a toarray method : Design and implement a ToArray method for the LinkedList class that takes a linked-list instance and returns an array.
What is the present value of a security : If you deposit $9,000 in a bank account that pays 8% interest annually, how much will be in your account after 5 years? What is the present value of a security that will pay $35,000 in 20 years if securities of equal risk pay 3% annually?
Function of an insurance linked note for risk management : What is the function of an insurance-linked note for risk management? What methods can a company use to transfer risk?
Patient protection and affordable care act : The 2010 Patient Protection and Affordable Care Act (ACA) was implemented primarily to provide access to health insurance for those who would not otherwise be insured. The ACA is not designed as a single-payer healthcare system although some of it..
Identify the tangible parts of this product andits service : What is De Mar's product? Identify the tangible parts of this product andits service components.How should other areas of De Mar (marketing, finance, personnel)support its product strategy?Even though De Mar's product is primarily a service product, ..
Display a list of each of the integers : Write a program that generates 10,000 random integers in the range of 0-9 and stores them in a binary search tree. Using one of the algorithms discussed in this chapter, display a list of each of the integers and the number of times each appears i..

Reviews

Write a Review

Financial Management Questions & Answers

  Cash flow budget for the next 12 months

Suppose you are asked to do a cash flow budget for the next 12 months for a newly opened baby health clinic. The budget must be done on a month-by-month basis. As the clinic has just opened you have no historical accounting data. The clinic is allowe..

  Compound return earned per year over a multiyear period

Which one of the following is defined as the average compound return earned per year over a multiyear period? Normal distribution of returns Variance of returns Geometric average returns Arithmetic average return Standard deviation of returns

  Calculated using variable costing and absorption costing

Badlands, Inc. reports the following information for the year ended December 31: Units sold 640 units Sales price $120 per unit Direct materials $28 per unit Direct labor $9 per unit Variable manufacturing overhead $15 per unit. The operating income ..

  Find the duration of the remaining half of the portfolio

The duration of the portfolio is 8.75 years. A quarter of that portfolio is invested in a bond with a 5 year duration. Another quarter of the portfolio is invested in a bond with 10 year duration. Find the duration of the remaining half of the portfo..

  What is the present value of the annuity

A 10-year annuity pays $1,850 per month, and payments are made at the end of each month. If the interest rate is 12 percent compounded monthly for the first five years, and 8 percent compounded monthly thereafter, what is the present value of the ann..

  The equity for a development deal

A developer puts in 5% equity and a fund puts in 95% of the equity for a development deal. Cash flow is to be distributed with the following order of priorities (e.g., "the waterfall"): What are the returns to the developer and the fund? What if the ..

  During which time it receives an annual dividend

A common stock is held for two years, during which time it receives an annual dividend of $10. The stock was sold for $100 and generated an average annual return of 16%. What price was paid for the stock?

  What is the dollar-denominated return in percentage

Suppose a U.S. investor wishes to invest in a British firm currently selling for 50 pounds per share by buying 200 shares of the British firm. The current exchange rate is $1.40 per pound. After one year, the exchange rate is $1.60 per pound and the ..

  The value of firm under each of the two proposed plans

Gael Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a levered plan (Plan II). Under Plan I, the company would have 185,000 shares of stock outstanding. What is the value of the firm under each of the two pr..

  What happens over time to the real interest rate and output

In 2023, a new Fed chair is appointed and resolves to return inflation to the level before 2020. Show with graphs what happens over time to the real interest rate, output, and inflation.

  What is the project operating cash flow for the first year

Operating Cash Flow The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales $25 million Operating costs (not including depreciation) 8 millio..

  Two different bonds currently outstanding

The McKeegan Corporation has two different bonds currently outstanding. Bond M has a face value of $13,500 and matures in 17 years. The bond makes no payments for the first 5 years, then pays $700 every six months over the subsequent 7 years, and fin..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd