Determine what is the approximate market value of the bond

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If average daily remittances are $6 million, and "extended disbursement float" adds 2 days to the disbursement schedule, how much should the firm be willing to pay for a cash management system if the firm earns 7% on excess funds.

A 15-year zero-coupon bond was issued with a $1000 par value to yield 8%. What is the approximate market value of the bond?

Sharon Smith will receive $1 million in 50 years. The discount rate is 14%. As an alternative, she can receive $1,000 today. Which should she choose?

Reference no: EM13334678

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