What is the present worth of the future payments listed

Assignment Help Business Management
Reference no: EM13721470

What is the present worth of the future payments listed below:

a. $5500, 6 years from now, at an interest rate of 10% compounded annually

b. $8500, 15 years from now, at an interest rate of 6% compounded annually

c. $30,000, 5 years from now, at an interest rate of 8% compounded annually

d. $15,000, 8 years from now, at an interest rate of 12% compounded annually

Reference no: EM13721470

Questions Cloud

What is the current market value of elites bond : Eleven years ago, Elite Elements issued a 15-year bond with $1,000 face value and a 5 percent coupon rate of interest (paid semi-annually). If investors require a return equal to 7 percent to invest in similar bonds, what is the current market value ..
What stock price should bondholders convert : Many years ago, Winding Road Maps issued a convertible bond with a conversion ratio equal to 40. The bond's face value is $1,000. (a) For how many shares of stock can a bondholder convert each bond? (b) At what stock price should bondholders convert?
Cash outflows related to call premium and underwriting cost : Dairy Corp. has a $10 million bond obligation outstanding which it is considering refunding. The bonds were issued at 10% and the interest rates on similar bonds have declined to 8%. The bonds have five years of their 20-year maturity remaining.
Calculate value of premium over and above exercise value : The exercise price on a call option is $30 and the price of the underlying stock is $35. The option will expire in 35 days. The option is currently selling for $5.75.
What is the present worth of the future payments listed : What is the present worth of the future payments listed below:
Discuss the process of a firm going through a security issue : Discuss the process of a firm going through a security issue by providing a through explanation of each stage. Be sure to address differences in the ways an issue can be brought to market, the decision making process for the issuing firm, risk factor..
Market rate of interest on similar bonds is eight percent : Ace Apparel, Inc., a manufacturer, has just issued $1,000,000 principal amount of bonds with a six percent semi annual coupon and a maturity of twenty years. The market rate of interest on similar bonds is eight percent (compounded semi annually)
Calculate the operating cash flow : Who Dat Restaurant is considering the purchase of a $27,000 soufflé maker. The soufflé maker has an economic life of six years and will be fully depreciated by the straight-line method. The machine will produce 2,300 soufflés per year, with each cost..
Debt securities include commercial paper treasury bonds : Debt Securities include commercial paper Treasury bonds and corporate bonds. The substantial decline in interest rates during the credit crisis is attributed to which of the following changes in the market for loan able funds

Reviews

Write a Review

Business Management Questions & Answers

  Acquiring leadership competencies

Acquiring leadership competencies - How are leadership competencies acquired during a development plan or program?

  What could one do to prepare themselves for competing in a

create a series of diagrams with text-based comments based on friedmans assessment and justify whether you agree or

  Tradeoffs between differentiation cost and pricing options

Explain competitive positioning and the tradeoffs between differentiation, cost, and pricing options.

  Ethics and corporate social responsiblity

Write down a brief paper (one to two pages) on source of moral authority. One often hears the expression, "let your conscience be your guide." Is conscience sufficient to decide what is right and wrong?

  Illustrate what are the industry values and norms

Illustrate what are the industry's values and norms? Where do these values and norms come from? Explain how would you characterize the industry's culture? In illustrate what way does its culture fit with its business structure or model?

  Purpose of a vision within an organizationone definition of

purpose of a vision within an organizationone definition of vision comes from burt nanus a well-known expert on the

  What is the bond market predicting about rate of inflation

Current yield on 10 year and 30 year U.S. treasury securities are 2.57% and 3.28% respectively. Using equation 5-6 on pages 206 to 207. Assume the default risk premium (DRP) and liquidity premium (LP) are zero.

  Make a business plan and a feasibility study

Make a business plan and a feasibility study for a small business in Iraq. The business is creating AV and HA products from China from some factories under the brand name "Ramazan for Electronics".

  Show step in an analysis

Describes, in great detail, exactly how things will be done -  explains why this course of action will solve the problem,

  Explain price be put on good given by world-s ecosystems

"Must the Price Be Put on Goods and Services given by World's Ecosystems". Read pro and con arguments, do your own study on web, and then present completely supported.

  Organizational design - theory and change

writer an opportunity to consolidate your thinking, new understandings and personal observations and experiences

  Major types of computer systems

Identify and explain key trends that are occurring in computer peripheral devices and how do these trends affect business uses of computers

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!

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