User Account

All Pages

What would be your percentage return on investment

Assignment Help Finance Basics
Reference no: EM131140695

Calculating the Time Value of Money

I need the answers to these 4 questions.

1. What is the present value of:

A. $7,900 in 10 years at 11 percent?
B. $16,600 in 5 years at 9 percent?
C. $26,000 in 14 years at 6 percent?

2. What is the present value of:

A. $7,900 in 10 years at 11 percent?
B. $16,600 in 5 years at 9 percent?
C. $26,000 in 14 years at 6 percent?

3. Exodus Limousine Company has $1,000 par value bonds outstanding at 10 per- cent interest. The bonds will mature in 50 years. Compute the current price of the bonds if the percent yield to maturity is:

A. 5 percent.
B. 15 percent

4. Based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) decline from 11 percent to 8 percent:

a. What is the bond price at 11 percent?
b. What is the bond price at 8 percent?
c. What would be your percentage return on investment if you bought when rates were 11 percent and sold when rates were 8 percent?

Reference no: EM131140695

Questions Cloud

Explain the finance concepts found in the given readings : Write a paper explaining the finance concepts found in the readings and how they relate to the context of the scenario.;Post your assignment as a Microsoft? Word attachment.
What inference can you draw from the numbers collected : Note that the fiscal year for the federal government is October 1 - September 31. What inference can you draw from the numbers collected?
Provide explanation as why you selecte particular investment : Select the highly marketable investment that you wish to research. Provide a brief (one paragraph) explanation as to why you selected that particular investment.
Discuss the importance of cash on hand : Discuss the importance of cash on hand and how it affects the strength of the business. Would you agree that the amount of cash on hand is a factor when comparing like businesses?
What would be your percentage return on investment : What is the bond price at 11 percent? What is the bond price at 8 percent? What would be your percentage return on investment if you bought when rates were 11 percent and sold when rates were 8 percent?
What is the required rate of return on a stock : What is the required rate of return on a stock with a $2.50 expected dividend and a $19 price with 6% growth? What is the growth rate of the stock with a $3.00 expected dividend and a $20.60 price with 15% required return?
What is tootsie rolls profit margin on net earnings : What is Tootsie Roll's profit margin on net earnings?On rent and royalty sales? On total sales? What would happen to Tootsie Roll's total gross margin if rent and royalty sales increased by 20%? Please show your work.
What was your annual rate of return on the stock : If you purchased a share of Mico.com stock on March 1, 1993 for $45 and you sold the stock at $168 on February 28, 1998, what was your annual rate of return on the stock?
Discuss types importance and usage as a risk management tool : In your paper you will need to discuss types, importance, typical users, usage as a risk management tool, pricing, effects of regulations, as well as disclosure requirements of the instrument as required by the Securities Exchange Commission.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is your investment worth in one year

Suppose you invest $1,000 today, compounded quarterly, with the annual interest rate of 5.00%. What is your investment worth in one year?

  Discuss the lower bound for option prices

Discuss the lower bound for option prices and the put-call parity with and without dividend yields; and explain why.

  Multiple choice - price elasticity

If P1 = $5, Q1 = 10,000, P2 = $6 and Q2 = 5,000, then at point P1 the point price elasticity equals, An imposition of a new tax on employer for public services coverage would lead to a reduce in the

  Cj computer disks stocks and sells recordable cds the

cj computer disks stocks and sells recordable cds. the monthly demand for these cds is closely approximated by a normal

  Eplain both estimates of initial investments and annual

every company has capital projects.nbsp the company you have selected must need somethingnbsp be it a new wing to the

  Explain why and how a firms cost of capital may decrease

explain why and how a firms cost of capital may decrease when the firms stock is cross-listed on foreign stock

  Discuss the pros and cons of stock options

Discuss the pros and cons of stock options. Do you consider them to be an effective equity incentive? Respond to at least two of your classmates' postings.

  Explain the no arbitrage and risk neutral valuation

Explain the no arbitrage and risk neutral valuation approaches to valuing a european option using a one-step binomial tree

  Computation of roi

A corporation decides to buy new equipment for $10,000 with an expected useful life of four years. At the end of each of the four years, the cash flow from this equipment is expected to be $4000.

  Determine the highest expected payoff for project

Zymase is a biotechnology start-up company. Researchers at Zymase must choose one of 3 different research strategies. The payoffs and their likelihood for each strategy are given below.

  Corporation versus liability of the individual employee

Liability of the corporation versus liability of the individual employee through commission of torts orcrimes using the internet at work

  Determining the future and present values

Write down the advantages and limitations of financial management of future and present values of money, annuities, interest rates, uneven cash flow, and amortization?

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