Calculating present and future value

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Present Values. Compute the present value of a $100 cash flow for the following combinations of discount rates and times:
r = 8 percent. t = 10 years.
r = 8 percent. t = 20 years.
r = 4 percent. t = 10 years.
r = 4 percent. t = 20 years.
Future Values. Compute the future value of a $100 cash flow for the same combinations of rates and times as in problem 1.

Number of Periods. How long will it take for $400 to grow to $1,000 at the interest rate specified?
4 percent
8 percent
16 percent

Annuity Values.
What is the present value of a 3-year annuity of $100 if the discount rate is 6 percent?
What is the present value of the annuity in (a) if you have to wait 2 years instead of 1 year for the payment stream to start?

Annuity Value. You've borrowed $4,248.68 and agreed to pay back the loan with monthly payments of $200. If the interest rate is 12 percent stated as an APR, how long will it take you to pay back the loan? What is the effective annual rate on the loan?

Bond Yields. An AT&T bond has 10 years until maturity, a coupon rate of 8 percent, and sells for $1,100.
What is the current yield on the bond?
What is the yield to maturity?

 

Reference no: EM1364842

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