I 16. JR Industries has a bond outstanding with 30 years to maturity, an 6.0% nominal coupon, semiannual payments, and a $1,000 par value. The bond has a 5.50% nominal yield to maturity, but it can be called in 5 years at a price of $1,050. What is the bond's nominal yield to call (YTC)?
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- What should be the price of a 8year zero-coupon bond with a face value of $1000 where zero-coupond bonds yield 6% interest?a 100000, 10% bond, pays a dividend every quarter for 8 years. the bond is priced at par and is redeemable at 110% of the par value. find the yield to maturity. I need an answer asap.100,000 invested today in a fund that pays 25% interest compounded annually. 3 yrs later, you borrow 50,000 with interest of 20% annually in a bank and invest to the fund. 2 yrs later, you withdraw enough money from the fund to repay the bank loan and all interest due on it. 3 yrs from this withdraw you start taking 20,000 per year in the fund. After 5 withdrawals, you withdraw the balance in the fund. How much was withdrawn? a. 1.9 Million b. 1.3 Million c. 1.6 Million d. 1 Million
- 2. A loan of $25,000 was repaid at the end of 9 months with $28,500. What annual rate of interest wascharged?3. If an investment company pays 16% compounded quarterly, how much should you deposit to have $5,000two years from now?Aerotron Electronics has just bought a used delivery truck for $15,000. The small business paid $1,000 down and financed the rest, with the agreement to pay nothing for the entire first year and then to pay $546.83 at the end of each month over years 2, 3, and 4 (first payment is in 13th month). a. What nominal interest rate is Aerotron paying on the loan? % b. What effective interest rate are they paying? % Round your answer to 4 decimal places for a and b. The tolerance is £0.0005. c. How much of the 14th month's payment is interest? How much is principal? payment interest = $ , and principal = $ d. How much of the 18th month's payment is interest? How much is principal? payment interest = $ and principal = $ e. How much of the 22nd month's payment is interest? How much is principal? payment interest = $ , and principal = $ Round your answers to the nearest whole dollar for c-e. The tolerance is ± 5. 400.07QUESTION 1 Muhammad takes out a loan of $ 2,130, at 8% simple interest, for 8 years. How much will he pay back at the end of year 8? QUESTION 2 Calculate the amount of interest on an investment of AED 103,971 at 8% simple interest for 5 years. QUESTION 3 If you deposit today $7,335 in an account for 6 years and at the end accumulate $10,885, how much compound interest rate (rate of return) you earned on this investment ? QUESTION 4 You will deposit 12,025 at 10% simple interest rate for 9 years, and then move the amount you would receive to an investment account at 12 % compound rate for another 3 years. How much money would you have at the end of the entire period ?
- Bond Valuation with Annual Payments Jackson Corporation's bonds have 5 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8.5%. The bonds have a yield to maturity of 11%. What is the current market price of these bonds? Round your answer to the nearest cent.?Edward wants to take a long trip around Europe 7 years from now. He estimates that he will need $12,000 to finance the trip. Edward has found a stock portfolio that generates a 8% yearly rate of return. How much does Edward need to invest today to afford the trip? Round to the nearest dollar, do not enter a dollar sign.3.4 A California bank, Berkeley Savings and Loan, advertised the following infor mation: 7% interest and effective annual yield 7.22%. No mention is made of the interest period in the advertisement. Can you figure out the compounding scheme used by the bank?
- 7. Samson entered into an agreement with "Lovey A & Handsome B Bank" whereby the former shall pay the latter double the amount after a period of n years. If the agreed interest rate is 14% compounded yearly, how much is the accurate value of n?A grocery store sells for $181,500 and a 20% down payment is made. A 35-year mortgage at 6% is obtained. Compute an amortization schedule for the first 3 months. Round your answers to two decimal places, if necessary. The value of the mortgage is $145,200 and the monthly payment is $827.64. Part 1 of 3 Payment number Interest Payment on Principal Balance of Loan 1 $ $ $ Part 2 of 3 Payment number Interest Payment on Principal Balance of Loan 2 $ $ $ Part 3 of 3 Payment number Interest Payment on Principal Balance of Loan 3 $ $ $Do as you are told. 1. Daniil makes deposits of 150 today and 280 13 years from now into an account. Interest is credited at an annual nominal rate of 7% compounded quarterly for the first 13 years. For the next 7 years, the account earns at a force of interest 8. If the accumulated value at the end of 20 years is 907, find S.