You are considering investing in a security that will pay you $1000 in 30 years. If the appropriate discount rate is 10%, what is the present value of this investment? Assume these investments sell for $365, in return for which you receive $1000 in 30 years, what is the rate of return investors earn on this investment if they buy it for $365? b What is the accumulated sum of each of the following streams of ordinary annuity payments? $35 per half-year for three and a half years at 14% p.a. compounded half- yearly. $25 a year for three years compounded annually at 2%. $500 a year for 10 years compounded annually at 5%
You are considering investing in a security that will pay you $1000 in 30 years. If the appropriate discount rate is 10%, what is the present value of this investment? Assume these investments sell for $365, in return for which you receive $1000 in 30 years, what is the rate of return investors earn on this investment if they buy it for $365? b What is the accumulated sum of each of the following streams of ordinary annuity payments? $35 per half-year for three and a half years at 14% p.a. compounded half- yearly. $25 a year for three years compounded annually at 2%. $500 a year for 10 years compounded annually at 5%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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- A You are considering investing in a security that will pay you $1000 in 30 years.
- If the appropriate discount rate is 10%, what is the
present value of this investment? - Assume these investments sell for $365, in return for which you receive $1000 in 30 years, what is the
rate of return investors earn on this investment if they buy it for $365?
- If the appropriate discount rate is 10%, what is the
- b What is the accumulated sum of each of the following streams of ordinary
annuity payments? - $35 per half-year for three and a half years at 14% p.a. compounded half- yearly.
- $25 a year for three years compounded annually at 2%.
- $500 a year for 10 years compounded annually at 5%
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