User Account

All Pages

What is the borrower total cash outlay every 6 months

Assignment Help Finance Basics
Reference no: EM131892220

A lender providing a loan of $7.5 million requires semi-annual payment of interest at a nominal rate of 8.8% per year, and repayment of the $7.5 million principal at the end of 13 years. The borrower plans to accumulate that principal for repayment at the end of 13 years using level semi-annual deposits into a sinking fund that earns interest at a nominal rate of 4.7% per year when compounded semiannually. What is the borrower's total cash outlay every 6 months?

Reference no: EM131892220

Questions Cloud

What is the yield to maturity : what is the yield to maturity on a 4.65 percent coupon bond with 18 years left to maturity that is offered for sale at $1,025.95? Assume par value is $1000.
What is the outstanding balance : Each succeeding monthly payment will be 3% lower than the prior one. What is the outstanding balance immediately after the 30th payment is made?
Compute the cumulative incidence of stroke in the study : Compute the cumulative incidence of stroke in the study and Compute the cumulative incidence of stroke in patients classified as hypertensive at baseline
What should be annual coupon of convertible bond : What should be the annual coupon of the convertible bond assuming you want the bond to trade at par? The coupon will be paid semi-annually.
What is the borrower total cash outlay every 6 months : What is the borrower's total cash outlay every 6 months?
Prepare a list of three best practices to follow : Prepare a list of three best practices to follow in the field of managerial economics and globalization. Provide a rationale for your response.
What amount would need to be invested today to achieve goal : What amount would need to be invested today to achieve the goal, given the current interest rate?
Portion paying interest : How much of the principal is paid down by the payment made at the end of the 22nd month?
Hat actions if any should you take : You are the CFO of a U.S. firm whose wholly owned subsidiary in Mexico manufacture component parts for your US assembly. What actions, if any, should you take?

Reviews

Write a Review

Finance Basics Questions & Answers

  Create a motivational and labor-relations strategy

With the same business in mind, create a motivational and labor-relations strategy. Please be as creative as you like.

  Personal wealth outside of the stock option

If Sharon Jacobs is also a founder of the company and has retained 8 million shares of its stock, how much of a difference will the auditors' decision make in her personal wealth outside of the stock option?

  An investor receives a 15 total return by purchasing a

an investor receives a 15 total return by purchasing a stock for 40 and selling it after one year with a 5 capital

  Draw a systems flowchart

If any exception routines are described in the narrative, they should be shown on a separate page (referenced through an off-page connector), so that the exception routines will not clutter the flowcharting of normal activities.

  Determine the portfolio weights

Determine the portfolio weights  for a portfolio that has 145 shares of stock A that sells for $45 per share and 110 shares of Stock B that sells for $27 per share?

  Compute the increased retained earnings for 2003

Compute the increased retained earnings for 2003 if the company were to declare a $4.25 common stock dividend. The company has 15,000 shares of common stock outstanding.

  Compute the market value

Corporation decides to raise 500,000 for improvements to its manufacturing plant.It has decided to issue a 1000 par value bond w/14% annual coupon rate and 10 year maturity.

  Risk measurement terms

Distinguish among the following risk measurement terms: beta, r-squared, covariance, and correlation coefficient.

  Compute the missing amounts in the following table

Specifically, analyze the company's sales growth, profits, profits as a percentage of sales, and dividends declared as a percentage of net income (dollar amounts in billions)

  Identify ethical breaches that we personally commit

Why is it difficult for us to identify ethical breaches that we personally commit?

  Why is the coefficient of variation a better risk measure

why is the coefficient of variation a better risk measure to use than the standard deviation when evaluating the risk

  What is your total return in dollars on this investment

One year ago, you purchased a 5-year, $1,000 face value, 6 percent coupon bond for $1,012. Interest is paid semi-annually. Today, you sold the bond at a market rate of return of 6.27 percent. What is your total return in dollars on this investment..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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