Calculate the present value of a $1,000 zero-coupon bond with six years to maturity if the yield to maturity is 7%
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Calculate the present value of a $1,000 zero-coupon bond with six years to maturity if the yield to maturity is 7%.
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- An annuity pays $25,000 semiannually (every 6 months) for 12 years. An alternative investment’s APR is 10% with quarterly compounding. What is the value of this annuity?company wants to issue a 15-year Bond with $1,000 face value and an 8% Annual coupon. the bond can be sold to investors for $1,010 per Bond but will incur transaction cost of $15 per Bond if the company tax rate is 21%. what is the after-tax cost of debt financing to the firm?You have deposited $10,800 into an account that will earn an interest rate of 8% compounded semiannually. How much will you have in this account at the end of 10 years? $16,564.89 $27,213.75 $23,664.13 $28,396.96
- Calculate the Macaulay convexity of a 10-year 6.9% $1000 bond having annual coupons and a redemption of $1,200.00 if the yield to maturity is 6.7%What is the yield to maturity of a 20-year bond that pays a coupon rate of 9% per year, has a $1,000 par value, and is currently priced at $915? [no chatgpt]Weismann Company issued 18-year bonds a year ago at a coupon rate of 11 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 10 percent, what is the current bond price?
- Malcolm Technology issued a new series of bonds on January 1, 1985. They were sold at par ($1,000) have a coupon rate of 10% and mature in 20 years. Coupon payments are made semi-annually. What was the price of the bond on January 1, 1995, when interest rates had fallen to 8%?You deposit $6,000 in an account earning 2% interest compounded monthly. How much will you have in the account in 10 years?Anna bought a bond with a par value of $10,000 and a coupon rate of 8% at par. After a year, she was able to sell her bond for $11,000. Calculate the rate of return on Anna’s investment. What is the current yield and capital gain on her investment?
- Given an interest rate of 6.1 percentper year, what is the value at Date t = 7 of a perpetual stream of $2,500 annualpayments that begins at Date t = 15?A lathe costs $56,000 and is expected to result in net cash inflows of $20,000 at the end of each year for three years and then have a market value of $10,000 at the end of the third year. The equipment could be leased for $22,000 a year, with the first payment due immediately. If the organization does not pay income taxes and its MARR is 10%, show whether the organization should lease or purchase the equipment.A borrower bought a house for $250,000; he can obtain an 80% loan with a 30-year fully amortizing, 6% interest rate and monthly payment. Assuming the marginal tax rate for the borrower is 25%. Maintain and insurance are currently $1,200 each per year, Selling cost is 6% of sale; property tax is 2% of the value each year, property value increases 5% per year. What is the first year total tax deduction from owning? $4250.0 $4920.71 53940.0 $3729.25