Assume the appropriate discount rate is 4%. You will receive a payment every year for the next 17 years, which will grow at 3% annually. The amount of the first payment will be $2,000. What is the current value of this series of payments?
In: Finance
Assume the appropriate discount rate is 7%. You will receive a payment every year for the next 14 years, which will grow at 3% annually. The amount of the first payment will be $5,000. What is the current value of this series of payments?
In: Finance
Assume the appropriate discount rate is 5%. You will receive a payment every year for the next 16 years, which will grow at 4% annually. The amount of the first payment will be $3,000. What is the current value of this series of payments?
In: Finance
Assume the appropriate discount rate is 8%. You will receive a payment every year for the next 13 years, which will grow at 4% annually. The amount of the first payment will be $6,000. What is the current value of this series of payments?
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You start saving $1,000 at the end of this year and increase your saving by 5% every year for 18 years. Your account earns 13%. How much will you have in your account in 18 years?
In: Finance
Suppose the YTM is 5% for a 20-year $1000 bond with a 7% coupon rate and annual coupon payments. Its bond price is $____.
Instruction: Type ONLY your numerical answer in the unit of dollars, NO $ sign, NO comma, and round to one decimal place. E.g., if your answer is $7,001.56, should type ONLY the number 7001.6, NEITHER 7,001.6, $7001.6, $7,001.6, NOR 7002. Otherwise, Blackboard will treat it as a wrong answer.
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The current cost of graduate school tuition is $18,093 per year. The cost of tuition is rising at 7% per year. You plan to attend graduate school for 3 years starting 2 years from now.
How much do you have to invest today if your savings account earns 3.90% APR compounded annually to just fund your tuition?
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Calculate an approximation of the yield to maturity (using the current yield) of a
20-year coupon bond with face value of 10,000$ and coupon rate of 5% per year;
assume that its price today is 3,000$.
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Smith Construction, Inc. is expected to pay a $2.78 dividend next year. The dividend is expected to grow by 4% each year for the next three years. After that the company will never pay another dividend ever again. If your required return on the stock investment is 10%, what should the stock sell for today?
Group of answer choices
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There is a 30 year bond, which pays 6% per annum at the time that required rates are10%. We buy with the intention of selling it in 4 years at which time the required rate is 6%. How much do we sell it in 4 years, and how much do we buy it now?
In: Finance