Mah Gulang has the opportunity to purchase a treasury bond that matures in eight years and has a face value of  $10,000. This means that Mah Gulang will receive $10,000 cash when the bond's maturity date is reached. Interest payments , amounting to 2% of the face value, will be made to Mah Gulang quarterly.   Mah Gulang would like to earn 10% nominal interest (compounded quarterly) per year in this investment, because interest rates in the economy has risen since the bond was issued. How much should Mah Gulang be willing to pay for the bond?

A property is expected to have NOI of $100,000 the first year. The NOI is expected to increase by 5 percent per year thereafter. The appraised value of the property is currently $1.25 million and the lender is willing to make a $1,125,000 participation loan with a contract interest rate of 5.5 percent. The loan will be amortized with monthly payments over a 20-year term. In addition to the regular mortgage payments, the lender will receive 50 percent of the NOI in excess of $100,000 each year until the loan is repaid. The lender also will receive 50 percent of any increase in the value of the property. The loan includes a substantial prepayment penalty for repayment before year 5, and the balance of the loan is due in year 10. (If the property has not been sold, the participation will be based on the appraised value of the property.) Assume that the appraiser would estimate the value in year 10 by dividing the NOI for year 11 by an 8 percent capitalization rate.   Required: Calculate…

A property is expected to have NOI of $100,000 the first year. The NOI is expected to increase by 5 percent per year thereafter. The appraised value of the property is currently $1.25 million and the lender is willing to make a $1,125,000 participation loan with a contract interest rate of 5.5 percent. The loan will be amortized with monthly payments over a 20-year term. In addition to the regular mortgage payments, the lender will receive 50 percent of the NOI in excess of $100,000 each year until the loan is repaid. The lender also will receive 50 percent of any increase in the value of the property. The loan includes a substantial prepayment penalty for repayment before year 5, and the balance of the loan is due in year 10. (If the property has not been sold, the participation will be based on the appraised value of the property.) Assume that the appraiser would estimate the value in year 10 by dividing the NOI for year 11 by an 8 percent capitalization rate.   Assume that another…

In five years you plan to use ​$10,000 for a down payment on a car. To accomplish​ this, you purchase a government bond that pays 4.5​% annual simple interest each year. What is the present value of this bond​ (having a future value of ​$10,000 in five ​years)

Ralph has an investment worth $264,289.32. The investment will make a special payment of X to Ralph in 2 years from today. The investment also will make regular, fixed annual payments of $67,000.00 to Ralph with the first of these payments made to Ralph in 1 year from today and the last of these annual payments made to Ralph in 5 years from today. The expected return for the investment is 11 percent per year. What is X, the amount of the special payment that will be made to Ralph in 2 years? O $16,664.22 (plus or minus 10 dollars) O $20,531.99 (plus or minus 10 dollars) O $12,184.74 (plus or minus 10 dollars) O $74,370.00 (plus or minus 10 dollars) O none of the answers are within 10 dollars of the correct answer

You purchase a condominium for $125,000. The bank requires a 20% down payment. You borrow the remainder as a 30-year, 6.6% mortgage with monthly payments. What portion of the payments during. the first 33 months goes toward principal?

You are working for a finance firm and a client comes to you and wants to know how much money they should put in an annuity (which earns 2.885% interest compounded quarterly) at the end of each three months for the next 36 years. Their goal is that when they retire at the end of 36 years, they would like the quarterly withdrawals from the annuity to total $68,000 per year and that the annuity is to last for the next 23 years. You are to determine the amount which your client needs to deposit into the annuity at the end of each three months for the next 36 years so that they can meet their retirement goal. Do the following: Show all your work that you used to answer this problem. Label the steps and important values as you solve the problem. Note that when you use the TVM Solver, show the all variables and the values you entered (into the variables) and solved for.  Find the total amount of interest client will earn (from the time they start contributing to the account to when they…

Anna borrows 188000 from a bank for a term of 21 years. The loan is to be repaid by level annual repayments, paid in arrears, and the interest rate is 5% per annum effective. Calculate the capital outstanding immediately after the 6th payment. Give your answer to two decimal places.

Jordan has $6000 to invest in an annuity from which he plans to make regular withdrawals over the next 3 years. he is considering tow options: Option A: Withdrawals are made every quarter and interest is earned at a rate of 8% compounded quarterly. Option B: Withdrawals are made every month and interest is earned at a rate of 7.75%, compounded monthly. (a) Determine the regular withdrawal for each option. (b) Determine the total interest earned for each option.

Asma has borrowed $1,000,000 from MQ Bank for 10 years at an interest rate of j2=4.67% p.a. She will make 10 annual repayments. According to the loan agreement, Asma's repayments will be $83,000 for the first two years followed by payments of X per year for the remaining eight years. This loan needs to be fully repaid by the end of 10 years. (b) Assume that all annual repayments will be paid at the beginning of each year (the first payment will be at the start of the first year), what is the value of Asma's annual payment amount, X (rounded to four decimal places)? Question 7Answer a. 134233.5495 b. 128177.7626 c. 127887.4496 d. 133859.7935