Quantitative Problem: You own a security that provides an annual dividend of $160 forever. The security’s annual return is 5%. What is the present value of this security? Round your answer to the nearest cent.

Suppose the term structure of risk-free interest rates is as shown here: a. Calculate the present value of an investment that pays $1,000 in 2 years and $4,000 in 5 years for certain. b. Calculate the present value of receiving $900 per year, with certainty, at the end of the next 5 years. To find the rates for the missing years in the table, linearly interpolate between the years for which you do know the rates. (For example, the rate in year 4 would be the average rate in year 3 and year 5.) c. Calculate the present value of receiving $2,700 per year, with certainty, for the next 20 years. Infer rates for the missing years using linear interpolation. (Hint: Use a spreadsheet.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) 2 years 3 years 5 years 7 years 1 year 2.06 2.44 2.64 3.22 3.74 Term Rate (EAR, %) Print Done 10 years 4.25 20 years 5.09 I X t cent.)

Provide step by step manula solution, formula, and diagram.  An investor have a projected surplus income of P1000 per year which he plans to place in a bank which offers an interest of 18% per annum for time deposit over 5 years. Compute how much shall the investor collect at the end of 13 years

Consider a dollar amount of $750 today, along with a nominal interest rate of 15.00%. You are interested in calculating the future value of this amount after 5 years. For all future value calculations, enter -$750 (with the negative sign) for PV and 0 for PMT. When calculating the future value of $750, compounded annually for 5 years, you would enter a value of 15 for 1/Y. Using the keystrokes you just identified on your financial calculator, the future value of $750, compounded annually for 5 at the given nominal interest rate, yields a future value of approximately $1,508.52. When calculating the future value of $750, compounded semi-annually (twice per year) for 5 years, you would enter a value of 10 for N, a value of 7.50% for I/Y. 5 for N, a value of Using the keystrokes you just identified on your financial calculator, the future value of $750, compounded semi-annually for 5 at the given nominal interest rate, yields a future value of $1,545.77. When calculating the future value…

GCB has offered to grant you GHC50,000 loan with an annual interest of 24% compounded monthly to buy a house, What would be the monthly payment on the loan if the mortgage would be fully amortized in 20 years? b) Find the future and present value of a 5 year GHC1,000.00 annuity if the rate of interest is 12% and the first monthly payment is made now. c) Dividend of a share is forecasted to grow -6% next year, grow super-normally at 30% the next 3 years, and at a constant rate of 7.5% thereafter. What is the value of the stock in question if dividend paid this year is GHC4.50share and the required return is 13%. d) Calkulate the value of a 10-year, 10% S1,00.00 semisannual coupon bond if the prevailing market interest rate is 8%.

Your friend told you about an NFT (Non-fungible Token)  that they think will be worth $856 in 6 years.  If your required return on investments of this risk is 21.75, what is the most you should be willing to pay for it today? Round to 2 decimal places.  Include a dollar sign ($) or percent (%) as appropriate. Answer: