Use excel to determine its promised yield to maturity

Reference no: EM13304540

1. Use Excel to determine the present value of $5 a year for 20 years and $100 in year 20 given the interest rate is 6%. Assume semi-annual coupon payments.

2. To fulfill a sinking fund payment of $1,000,000 in 10 years, how much is needed to be set aside each year given the interest rate of 8%? Use Excel.

3. For a loan of $500,000 with a fixed monthly payment for 20 years, what will be the monthly payment given the interest rate of 4.5%? Use Excel.

4. A bond has a coupon rate of 4%, a 10-year maturity, a $100 face value, and a price of $87.25. Use Excel to determine its promised yield to maturity.

5. How soon will a loan with the amount of $330,000 be paid off if you make a monthly payment of $1750 and the borrowing rate is 4.85%?

6. A stock is expected to pay a dividend of $2, $2.25, $3, $3.75, and $4 each year for the next five years, respectively, and it is expected to have a value of $25 in five years. Determine its current value given a return of 10%.

7. An investment that requires an initial capital outlay of $10 million is expected to generate cash flows of $2 million, $4 million, $6 million and $3 million in the next four years. Determine the internal rate of return of the investment. If the cost of capital is 10%, is this a good investment? If the cost of capital is 10%, determine the net present value of the investment.

Reference no: EM13304540

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