What is the price of an asset paying, Financial Accounting

Assignment Help:

Suppose the interest rate for a one-period bond is 4% between the current period and the next. Then the rate becomes 5% for ever.

(a) What is the price of an asset paying (1,1,1) which means 1 after 1 period, 1 after 2 periods, and 1 after 3 periods.

(b) What is the price of an asset paying (1.5,0,1.5)?

(d) What is the price of an asset paying (0,0,3,0,0,3,0,0,3)?

Related Discussions:- What is the price of an asset paying

Determine out the future value, Determine out the future value of Rs.1000 c...

Determine out the future value of Rs.1000 compounded yearly for 10 years at an interest rate of 10 percent. Solution: The future value 10 years thus would be FV = PV (1+k)

Continuous compounding, The excessive frequency of compounding is generally...

The excessive frequency of compounding is generally continuous compounding where the interest is compounded immediately. The data for continuous compounding for one year is e APR

Concepts, what is the implication of applying accounting concepts wrongly

what is the implication of applying accounting concepts wrongly

Expense during 2013 on patent, In January, 2008, Sanford Corporation purcha...

In January, 2008, Sanford Corporation purchased a patent for a new product for $1,200,000. The patent was valid for fifteen years but it was estimated to have a useful life of ten

Duties of trustees-trusts laws and accounts, DUTIES OF TRUSTEES 1) Not ...

DUTIES OF TRUSTEES 1) Not to profit from the trust : A trustee may not receive remuneration except: By order of the court, if the trust is very onerous or the services of the

Depriciation , an asset has a useful life of 4 years.If it is depriciated b...

an asset has a useful life of 4 years.If it is depriciated by diminishing balance method.Its book value at the end of 4 years is 24% of its original cost.Hence the rate of depricia

Explain about mutual fund, Q. Explain about Mutual Fund? Mutual Fund - ...

Q. Explain about Mutual Fund? Mutual Fund - Investment Companythat usually offers its shares to general public and invests the proceeds in a diversified portfolio of SECURITIES

Calculate the operating cash flow, You are evaluating a project which costs...

You are evaluating a project which costs $720,000, has a four-year life, and no salvage value. Depreciation is straight-line and the half year rule does not apply. Sales are projec

Calculate the operating cash flow, You are evaluating a project which costs...

You are evaluating a project which costs $720,000, has a four-year life, and no salvage value. Depreciation is straight-line and the half year rule does not apply. Sales are projec

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages