Corporate Finance: A Focused Approach (mindtap Course List)
Corporate Finance: A Focused Approach (mindtap Course List)
7th Edition
ISBN: 9781337909747
Author: Michael C. Ehrhardt, Eugene F. Brigham
Publisher: South-Western College Pub
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Chapter 4, Problem 2P
Summary Introduction

To Determine: The present value of security.

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What is the present value of a security that will pay $18,000 in 20 years if securities of equal risk pay 8% annually? Round your answer to the nearest cent.
What is the present value of a security that will pay $29,000 in 20 yearsif securities of equal risk pay 5% annually?
What is the present value of a security that will pay $10,000 in 5 years if securities of equal risk pay 3.5% annually?  What is the present value of a security that will pay $3,000 in 10 years if securities of equal risk pay 12% annually?  What is the present value of a security that will pay $10,000 in 3 years if securities of equal risk pay 5% annually?  What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?  What is the present value of a security that will pay $8,989 in 13 years if securities of equal risk pay 22% annually?  What is the present value of a security that will pay $1,989 in 22 years if securities of equal risk pay 13% annually?
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