What is the present value of a perpetuity of $100 if the appropriate discount rate is 7%? If interest rates in general were to double and the appropriate discount rate rose to 14%, what would happen to the present value of the perpetuity?

Q: 1. Lottie wants to have a fund that would pay annual payments to her son of Php200,000 a year…

A: 200000 / 0.05 = 4,000,000 so answer is $4000000

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A: The formula for calculating the Future Value is: FV= PV(1+r)nwhere,FV= Future ValuePV= Present…

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A: * SOLUTION :-  * 3) The monthly payment is computed as shown below: * Present value = Monthly…

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A: Given: Time=4 years Bond %=3 Duration=3.5 year Original yield=9% New yield=9.15%

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A: The current interest rate is 3%.  The coupon rate is 5%.  The face value of a bond is $1000.  Number…

Q: A local bank advertises the following deal: "Pay us $100 at the end of each year for 10 years and…

A: Using a proper discount rate, a measure known as the present value (PV) can be used to determine…

Q: T3

A: Given: The original price of a bond is = $1,000 The fixed annual interest payment is = $150 The…

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A: An interest rate is defined as the amount charged on the principal amount by the lender to a…

Q: Consider a bond with a three-year remaining maturity. A. If somehow the face value of the coupon is…

A: Given,    Worth of the bond's coupon FV =$10000voucher payment (C)= $500 per yearproduce to maturity…

Q: H6. a. what is the present value of a two year income stream $10,000 in year 1 and $10,000 in year 2…

A: Present Value refers to the value of a series of income streams or series of cash payments…

Q: Suppose Ford Motor Company issues bonds with a face value of $500 and an annual coupon payment of…

A: Face value is the actual value of a digit in a number. To get the place value of a number, we…

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A: Case 1 : Compound yearly interest Principal (P) = $1,000 Interest rate (r) = 1% Time period (t) = 2…

Q: The future value of an annuity will increase if the interest rate goes up , but the present value of…

A: To find out the present value, we discount the future values with respect to the interest rate.

Q: 10. Suppose the interest rate is 5% and that you are to receive three annual payments of $10,000,…

A: The present value is an important financial concept popularly used by business firms and individuals…

Q: 3. What is the yield to maturity of a 15% coupon bond selling for $900 that has a face value of…

A: Yield to maturity (YTM) refers to the internal rate of return (IRR) an investor will receive on a…

Q: Hi! Can you help me with the question below? Matt has the choice between receiving $100 now or…

A: Matt has the choice between receiving $100 now or receiving $140 in two years. Simple interest…

Q: he future value and present value equations also help in finding the interest rate and the number of…

A: FV (Future value) means the present assets at a date in future depended on a presumed growth rate.…

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A: Since you have posted multiple questions, as per the guidelines we can solve only one question( with…

Q: minutes please with

A: Given Constant monthly payment = 3000 $ Time = 15 years Interest rate = 8 % Monthly rate = 8 / 12 =…

Q: 10. Lawrence has just won $6,250 from the 50/50 at the Sea Dog's game and decides to invest all of…

A: Given that, Principal = $6250 Interest = 6.5% Interest = $1480 (Compounded or Simple Interest) Time…

Q: You will need $100,000 in seven years to buy a new car. How much money do you need to deposit in the…

A: Present value is the value of investment in today's dollar.   Future value is the value of…

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A: Bonds are tradable assets that are securitized versions of corporate debt issued by businesses.…

Q: A man has a simple discount note for $6,100, at an ordinary bank discount rate of 8.61%, for 60…

A: Lets saydiscount note (M) = 6100discount rate (D) = 8.61%Time (T) = 60/365

Q: 61: Suppose you are thinking about getting some United States Depository Bonds, say a $, long term…

A: No.

Q: 1. Consider a coupon bond that has a $1,000 par value and a coupon rate of 9%. The bond is currently…

A:

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A: Given, Future amount, F= $15, 000 interest rate, i= 10% time period, n= 5 years

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A: Interest rate is the rate at which the money is traded . Money is like a normal goods an interest…

Q: Please show work

A: The Future value of lottery amount is $500,000 in 35 years.Interest rate is 5%.

Q: f a coupon bond has two years to​ maturity, a coupon rate of 8​%, a par value of ​$1000​, and a…

A: Answer: Given, Coupon rate = 8% Par value = $1000 Yield to maturity = 12% Calculation:…

Q: Annuity Suppose that you are thinking of buying a car that yields a rental of $5,000 each year for 3…

A: To determine how much you should be willing to pay for the car, we can calculate the present value…

Q: Gail has won a lottery that pays her $100,000 at the end of this year and increases by 15 percent…

A: Present worth is the sum of money that must be invested to achieve a particular future goal. Future…

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A: Question 6: Should You Invest?Initial Cost: −$1,000 (you pay this amount)Total Income: $100 annually…

Q: 11. Problem 11 Bond A pays $4,000 in 20 years. Bond B pays $4,000 in 10 years. (To keep things…

A: n = 70/interest rate

Q: In 54 months time you expect a cash flow of $3 million. Calculate it’s present value (PV) given the…

A: Present value is the amount of a normal revenue source or income limited at the current pace of…

Q: the interest rate is 10 percent, the present value of an annual payment of $100,000 to be received…

A: The present value of perpetuity depends on the rate of interest or the discount rate.

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A: A person saves money for his retirement in order to be able to sustain himself when he is unable to…

Q: Suppose that you are considering an investment, which would require you to pay $1,000 up front…

A: Net present value is the difference between the present value of benefits and the present value of…