On February 1, 2023, what was the value of a P7,000, bond with 5% compounded semiannually due on January 1, 2027, if money is worth 10%, m = 2 and interest dates January 1 and July 1.
Q: The cost of capital for a firm, rWACC, in a tax-free environment is: I) equal to the market value…
A: Formula for cost of capital= Wt. of equity * Cost of equity + Wt. of debt * Cost of debt * (1- Tax…
Q: How much interest is earned at 2.5% if an amount of P10,500 was invested on October 3, 2021 and will…
A: Interest is calculated on the principal value for the time due that remains unpaid. It is a time…
Q: Regarding individual investor behaviour, which of the following is FALSE? Individual investors…
A: The answer is option 2. Individual investors are more likely to sell stocks recently covered by the…
Q: A person try to buy an apartment five years from now , assuming that the first deposit was ( $ 3000…
A: Accumulated value after 5 years = 3000*(1+i)^4 + 3300*(1+i)^3 + 3600*(1+i)^2 + 3900*(1+i)^1 + 4200…
Q: i. If Sebonia Berhad holds 600 units of shares of Eclip before the split, calculate the number of…
A: i)The Share splits is for every 3 Shares the Shareholders will get 5 Shares. If Sebonia Berhad has…
Q: D6) A bond paying a single coupon of $50 annually with 5 years to maturity and a face value of $1000…
A: Bonds are the debt security which is issued by the corporations or the government to raise the…
Q: P₁ =? 2000 U 1000 U 1 3000 U 2 3 i= 15%
A: The present value of the investment can be calculated using an appropriate discount rate. Present…
Q: D6) If the corporate tax rate in a foreign country is 20%and the tax rate in the home country is…
A: When there is a change in tax rate then it will have to be considered as it will affect the…
Q: Lyceum of Aparri purchased an asset for P 12,555.00 and plans to keep it for 19 years. If the…
A: Depreciation: A depreciation is a non-cash expenses for the company. The depreciation expenses is…
Q: Suppose that your firm's current unlevered value, V*, is $800,000, and its marginal corporate tax…
A: Answer - Value of firm = Value of unlevered firm + PV(tax shield) - PV(cost of financial…
Q: Jason invests $6000 in a savings account. The savings account pays compound interest at a rate of…
A: In case of compound interest, future value can be calculated as: = Initial Investment * ((1 + rate1)…
Q: Comment on the use of probability in investment decision process.
A: Use of probability is a very important tool when it comes to making decisions with regards to…
Q: You have been approached to buy an investment which will pay you $1,000 at the end of 4 years. The…
A: Present Value is the sum of all cashflows received during the life of the investment discounted at…
Q: 2000, an investment was opened with an initial deposit of $1800. The investment had grown to…
A: Future value of money depends on the interest rate, period and compounding per period and interest…
Q: (A) A decrease in personal income taxes (B) A decrease in government spending (C) An increase in…
A: Aggregate demand can be increased by many ways federal bank takes many initiatives to increase the…
Q: Engineer A puts PhP 500,000 and Engineer B puts PhP 0,000 into a savings account at different banks.…
A: Here we will use the concept of time value of money. As per the concept of time value of money the…
Q: A person plans to make a series of equal quarterly deposits of $1,500 each into a savings account,…
A: Equal Quaterly deposits are of $1,500 Interest rate is 6.5% compounded daily Time period is 10 years…
Q: 1. What is Private Equity? 2. What is Sovereign Wealth Funds? 3. What is Hedge Funds?
A:
Q: Upon retirement, Geraldine will receive a lump sum of 666,666 but opted to receive instead a…
A: Perpetuity means an infinite number of fixed payments made in equal intervals of time. This concept…
Q: An agricultural equipment was purchased at PhP1.75M has a resale value of PhP900000 whenever it is…
A: Payback period is the time taken by the investment to payback the cost of the investment. The…
Q: After graduation, you just got hired by an engineering company and you were planning to take a loan…
A: When loan repayments are made in equal instalments, the relationship between initial loan principal…
Q: 5. Suppose A is the market portfolio with expected return m = 5% and standard deviation of return m…
A: The following information is provided in the question: Expected return of A=5% Standard deviation…
Q: 8. Mr. Diamond expects to invest $1000 per year for each of the next 20 years in an investment plan…
A: Here we will use the concept of time value of money. As per the concept of time value of money the…
Q: The 2020 balance sheet of Osaka’s Tennis Shop, Incorporated, showed long-term debt of $2.25 million,…
A: Cashflow means movement of cash in the firm. It can be positive or negative. Positive movement means…
Q: Here are the four answer options provided for this question
A: Profitability Index: It is used in capital budgeting to measure the investment's or project's…
Q: 6. Is it possible to value the company below using the constant growth model? Why or why not?…
A: To determine the value of the company, there is a need for the cost of equity, expected dividend,…
Q: same? Lütfen birini seçin: O a. cannot be decided O b. Project B O c. Project A O d. Neither Project…
A: Net present value is the difference between the present value of cash flow and initial investment of…
Q: Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its…
A: Dividend discount model refers to a stock valuation model which is used by the company for…
Q: If a firm has preferred stock, the after-tax weighted average cost of capital (WACC) equals:…
A: The Weighted average cost of capital(WACC) refers to the financial ratio that calculates the overall…
Q: The Grant Corporation is considering permanently adding $500 million of debt to its capital…
A: Adjusted present value is the net present value (NPV) of a project or business if funded solely in…
Q: What is the present value of the following set of cash flows at an interest rate of 5%; $2000 at the…
A: Interest rate = 5% Year Cash flow 1 2000 4 6000
Q: list and explain three internal and at least three external sources of finance that are available to…
A: Sources of Finance: It refers to the places from where a firm or business can obtain money to fund…
Q: 1. You want to invest in a company that guarantees your money's interest payments and returns at the…
A: Current yield With annual interest in terms of coupon payment or annual dividend, the current yield…
Q: What is the importance of the financial literacy for elementary pupil
A: Finance is an important aspect of our daily lives. Even children and elementary pupils should have…
Q: (Related to Checkpoint 5.5) (Solving for n) Jack asked Jill to marry him, and she has accepted under…
A: Here, Given Present Value = 67,960 Future Value = 330,000 Interest rate per annum = 4.5%
Q: Lionel Company has 1,500 units of bonds outstanding. Each unit has $100 face value, 6% coupon rate…
A: Here, Units of Bond is 1,500 Face Value of Each Bond is $100 Coupon Rate is 6% Coupon Compounding…
Q: Problem 1 An adjustable interest loan was taken by David Walker for a sum of $20,000 for 10 years.…
A: An adjustable interest rate loan is a loan where based on the financial index, the interest rate of…
Q: An investor purchases a 197 days to maturity T-Bill in the secondary market. The market interest…
A: To Find: Annual effective yield for investors
Q: what should the nominal rate of interest be?
A: Nominal interest rate (NIR) refers to a interest rate which an investor is expect from his…
Q: Find the bond premium and purchase price on a P2,000 bond with interest at 2% compounded…
A: To calculate the bond price we will use below formula Bond price = [FV*(1+r)-n]+[C*{1-(1+r)-n}/r]…
Q: Degree of financial leverage of 1.5 implies that: Select one: Increase in revenues by 2.5% would…
A: Degree of financial leverage measures the change in the earnings per share or net income of the…
Q: amount at low interest rate of 1.99% per year compounded monthly for 36 m year compounded monthly…
A: Loan: It represents credit given to the borrower by the lender. The borrower makes periodic…
Q: Mr John Week borrowed $ 2,400 at 1% per month payable in 24 equal end-of-the month payments. How…
A: The loan amount which is unpaid is needed to be paid in installments. If this amount will not paid…
Q: A firm with a below industry net profit margin can improve its return on total assets by: a.…
A: Net profit margin: Net profit margin evaluates how much net profit a firm makes per dollar of…
Q: Given per number are three options for using the capital (or other parameters) of a certain project.…
A: B/C is ratio of present value of benefits to initial investment of the project and project with…
Q: years with 40 equal payme every payment? how much will she need to pay
A: Loan Payment: These represent periodic payments made to the lender by the borrower to amortize the…
Q: Find Ordinary interest on ₱15,500 for 95 days at 8.75% simple interest
A: Data given: Loan amount = ₱15,500 Interest rate = 8.75% p.a. Period= 95 days Assumed no. of days in…
Q: A boy borrows 25000 from father. His father lends him the money, on the condition that he would be…
A: Here, Borrowed Amount is 25,000 First year monthly payment is 500 Interest Rate is 5.2% Compounding…
Q: what is the card's EFF%? Select the correct answer. a. 9.33%b. 3.73%c. 6.53%d. 17.73%e. 12.13%
A: Effective Rate of Return: It is the effective annual rate on an investment or loan and takes into…
Q: You have 4 types of assets in your portfolio: Corporate bonds shares are valued at $250 and make up…
A: Share price: Share price is the current market price of the share. It is the price of the share at…
On February 1, 2023, what was the value of a P7,000, bond with 5% compounded semiannually due on January 1, 2027, if money is worth 10%, m = 2 and interest dates January 1 and July 1.
Step by step
Solved in 2 steps with 3 images
- On December 31, 2024, when the market interest rate is 14%, McMann Realty issues $800,000 of 11.25%, 10-year bonds payable. The bonds pay interest semiannually. Determine the present value of the bonds at issuance. (Round all currency amounts to the nearest whole dollar.) (Click the icon to view Present Value of Ordinary Annuity (Click the icon to view Present Value of $1 table.) of $1 table.) (Click the icon to view Future Value of $1 table.) of $1 table.) The present value of the bonds at issuance amounts to (Click the icon to view Future Value of Ordinary AnnuityA $10 000 bond bearing interest at 5% payable semi-annually is redeemable at par on August 04, 2035. The bond is sold on March 24, 2021, to yield 5.3% compounded semi-annually. How much is the bond sold for? B I 2: II !!A debt of P20, 000 is due on December 1, 2020. What was the value of this debt on December 1, 2018 at 14% converted semi-annually? A P33,500.39 B P15,257.90 O P36,548,19 D P 28, 600.21
- f. Now assume the date is October 25, 2019. Assume further that a 12%,10-year bond was issued on July 1, 2019, pays interest semiannually (onJanuary 1 and July 1), and sells for $1,100. Use your spreadsheet to findthe bond’s yield.A debt of P20, 000 is due on December 1, 2020. What was the value of this debt on December 1, 2018 at 14% converted semi-annually? P15,257.90 P33,500.39 P 28, 600.21 P36,548,19 Find the amount of an ordinary annuity of 20 semi-annual payments of P1, 000 if interest rate is 12% compounded semi-annually. P15,257.90 P33,567.21 P 38, 678.15 P36,785.59What is the maturity value of a $8,500 note dated June 17, 2020, if it matures on November 15, 2020 at 7.75%. (Banker’s Rule)
- What amount should be paid on October 5, 2022, on a loan of P100,000 made on December 13, 2021 with 4.7% simple interest?A debt of P20, 000 is due on December 1, 2020. What was the value of this debt on December 1, 2018 at 14% converted semi-annually? A P15,257.90 B P33,500.39 C P 28, 600.21 D P36,548,19$60,000, 5-year bonds, with January 1, 2021. The market rate of interest is 8%. Interest payments are made 10% stated rate of interest are issued at $64,867 on semi-annually on June 30 and December 31. What happens to the book value of the bond on the first interest payment date? Assume effective-interest amortization is used. Round your answer to the nearest dollar.
- A perpetual bond pays the owner 29,000.0O at the end of each year with the interest rate is fixed at 6.1 %. Solve for Present Value of the perpetual bond.A $10 000 bond with 5% interest payable quarterly, redeemable at par on November 15, 2034, was bought on July 2, 2018, to yield 9% compounded quarterly. If the bond sells at 92.75 on September 10, 2024, what would the gain or loss on the sale be? Show manual working.Answer the following questions regarding a four-month promissory note for $1,850 issued June 1, 2021, and bearing an interest rate of 5% p.a. a) What was the maturity date of the note? b) How much was the note worth at maturity? c) How much was the note traded for on Sep 1, 2021, if money was worth 6% p.a.?