Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Lucas borrows $4300 for 11 years. He can repay the loan using the following two methods:
(i) amortization method with equal annual payments of R at an annual effective interest of 6%.
(ii) sinking fund method in which the lender receives an annual effective rate of 7.12% and the sinking fund earns an annual effective rate of jj.
If both methods require the same total annual payment R to be made at the end of each year for 11 years, calculate jj.
st: Under the amortization method, the annual payment is R=
2nd: Under the SF method, the annual interest payment is I=
3rd: The sinking fund deposit is D=
4th: The sinking fund annual effective rate is j=
Allison Jones of Jonesboro, Arkansas, is considering paying $150 a year for an extended warranty on several of her major appiances. If the appliances are expected to last for five years and she can earn 2 percent on her savings, what would be the fut..
What impact, if any, would the fact that the firm could stretch its accounts payable (net period only) by 20 days from supplier A have on your answer in part (b) relative to this supplier?
Billy Bobs, Inc has a $1000 par value bond that is currently selling for $911.It has an annual coupon rate of 11.70%, paid semi-annually, and has 28-years remaining until maturity What would the annual yield to maturity be on the bond if you purchase..
What is the bonds nominal annual coupon interest rate - What is the liquidity premium (LP) on Niendorf's bonds - what is the present value of the cash flow stream
Assume that you contribute $280 per month to a retirement plan for 25 years. Then you are able to increase the contribution to $480 per month for the next 25 years. Given an 7 percent interest rate. What is the value of your retirement plan after the..
The current price of a non-dividend-paying stock is $30. Over the next six months it is expected to rise to $37 or fall to $25. Assume the risk-free rate is zero. An investor sells a call option with a strike price of $31 per share. How would the inv..
Consider the choice between $25,000 today or $1,000 per year for 30 years, with investors caring only about the time value of money. Which of the following is true?
What is true of Arbitrage pricing theory? 1) it is a single factor model 2) it is a multifactor model 3) it is frequently used by practitioners 4) It specifies the factors that influence stock returns
Bond valuation relationship: a bond of Telink Corp. pays $100 in annual interest, with a $1,000 pay value. The bonds mature in 10 years. The market's required yield to maturity on a comparable risk bond is 9%. what is the value of the bond if the mar..
The company wants to reserve the right to choose the exact delivery date to fit in with its own cash flows. Put yourself in the position of the bank. How would you price the product that the company wants?
You have just purchased a five- year maturity bond for $ 10,000 par value that pays $ 610 in coupon interest annually ($ 305 every six months). You expect to hold the bond until maturity. Calculate your expected total return if you can reinvest all c..
Henry is trying to determine Franco Inc’s cost of debt. The firm has a debt issue outstanding with 17 years to maturity that is quoted at 90 percent of face value. The issue makes semiannual payments and has a coupon rate of 6 percent annually. What ..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd