In: Finance
15 | 1000000*30/360*1.5% | |||||||
1250 | ||||||||
Proceeds from investment = (1000000+1250) | 1001250 | $1,001,250 | ||||||
16 | 1000000*(1/(1.02^(60/360))) | |||||||
996705 | ||||||||
The present value would be $ 996705 | ||||||||
17 | Annuity factor = (1-(1+r)^-n)/r | |||||||
(1-(1+0.06)^(-10))/0.06 | ||||||||
7.3601 | ||||||||
Present value of $ 60 received for next ten years | ||||||||
$60*7.3601 | 441.606 | |||||||
Present of $ 1000 | ||||||||
1000*(1/(1.06^10)) | ||||||||
1000*0.558395 | 558.395 | |||||||
Price of Bond | $1,000 | |||||||
18 | If yield to maturity is 5% | |||||||
Annuity factor = (1-(1+r)^-n)/r | ||||||||
(1-(1+0.05)^(-20))/0.05 | ||||||||
12.4622 | ||||||||
Present value of $ (100000*5%) = $ 5000 received for next 20 years | ||||||||
$5000*12.4622 | 62311 | |||||||
Present of $ 1000 | ||||||||
100000*(1/(1.05^20)) | ||||||||
100000*0.376889 | 37688.9 | |||||||
Price of Bond | $100,000 | |||||||
If yield to maturity is 6% | ||||||||
Annuity factor = (1-(1+r)^-n)/r | ||||||||
(1-(1+0.06)^(-20))/0.06 | ||||||||
11.4699 | ||||||||
Present value of $ (100000*5%) = $ 5000 received for next 20 years | ||||||||
$5000*11.4699 | 57349.5 | |||||||
Present of $ 1000 | ||||||||
100000*(1/(1.06^20)) | ||||||||
100000*0.311805 | 31180.5 | |||||||
Price of Bond | $88,530 | |||||||
If yield to maturity is 4% | ||||||||
Annuity factor = (1-(1+r)^-n)/r | ||||||||
(1-(1+0.04)^(-20))/0.04 | ||||||||
13.5903 | ||||||||
Present value of $ (100000*5%) = $ 5000 received for next 20 years | ||||||||
$5000*12.5903 | 62951.5 | |||||||
Present of $ 1000 | ||||||||
100000*(1/(1.04^20)) | ||||||||
100000*0.456387 | 45638.7 | |||||||
Price of Bond | $108,590 | |||||||
18 | If maturity is 30 years | |||||||
Annuity factor = (1-(1+r)^-n)/r | ||||||||
(1-(1+0.05)^(-30))/0.05 | ||||||||
15.37245 | ||||||||
Present value of $ (100000*5%) = $ 5000 received for next 20 years | ||||||||
$5000*15.37245 | 76862.25 | |||||||
Present of $ 1000 | ||||||||
100000*(1/(1.05^30)) | ||||||||
100000*0.231377 | 23137.7 | |||||||
Price of Bond | $100,000 | |||||||
If yield to maturity is 6% | ||||||||
Annuity factor = (1-(1+r)^-n)/r | ||||||||
(1-(1+0.06)^(-30))/0.06 | ||||||||
13.76483 | ||||||||
Present value of $ (100000*5%) = $ 5000 received for next 20 years | ||||||||
$5000*13.76483 | 68824.15 | |||||||
Present of $ 1000 | ||||||||
100000*(1/(1.06^30)) | ||||||||
100000*0.17411 | 17411 | |||||||
Price of Bond | $86,235 | |||||||
If yield to maturity is 4% | ||||||||
Annuity factor = (1-(1+r)^-n)/r | ||||||||
(1-(1+0.04)^(-30))/0.04 | ||||||||
17.29203 | ||||||||
Present value of $ (100000*5%) = $ 5000 received for next 20 years | ||||||||
$5000*17.29203 | 86460.15 | |||||||
Present of $ 1000 | ||||||||
100000*(1/(1.04^30)) | ||||||||
100000*0.308319 | 30831.9 | |||||||
Price of Bond | $117,292 | |||||||