What is the present value of a security that promises to pay you $15,000 in 10 years? Assume that you earn 5% compounded quarterly if you were to invest in other securities of equal risk. Question 6Answer a. $ 11, 325.10 b. $1,262.86 c. $1,533.00 d. $9, 126
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- If a security currently worth $12,800 will be worth $15,573.16 five years in the future, what is the implied interest rate the investor will earn on the security—assuming that no additional deposits or withdrawals are made? 3.20% 0.24% 1.22% 4.00%6. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $9,200 will be worth $15,767.18 seven years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? 5.83% O6.40% 8.00% O 1.71 % If an investment of $50,000 is earning an interest rate of 8.00%, compounded annually, then it will take a value of $89,052.92-assuming that no additional deposits or withdrawals are made during this time. for this investment to reach Which of the following statements is true-assuming that no additional deposits or withdrawals are made? An investment of $25 at an annual rate of 10% will return a higher value in five years than $50 invested at an annual rate of 5% in the same time. An investment of $50 at an annual rate of…3. Finding the interest rate and the number of years Aa Aa E The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations If a security currently worth $9,200 will be worth $12,106.57 seven years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? 7.60% 0 0.19% О 4.00% О 1.32% If an investment of $35,000 is earning an interest rate of 4.00%, compounded annually, then it will take for this investment to reach a value of $41,755.92-assuming that no additional deposits or withdrawals are made during this time. Which of the following statements is true-assuming that no additional deposits or withdrawals are made? It takes 10.50 years for $500 to double if invested at an annual rate of 5%. 0 It takes 14.21 years for $500 to double if invested at an annual rate of 5%.
- 4. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $5,600 will be worth $12,379.82 seven years in the future, what is the implied interest rate the investor will earn on the security—assuming that no additional deposits or withdrawals are made? 12.00% 4.52% 9.60% 0.32% If an investment of $35,000 is earning an interest rate of 4.00%, compounded annually, then it will take for this investment to reach a value of $44,286.17—assuming that no additional deposits or withdrawals are made during this time. Which of the following statements is true—assuming that no additional deposits or withdrawals are made? If you invest $1 today at 15% annual compound interest for 82.3753 years, you’ll end up with $100,000. If you invest $5 today at…15 The promised cash flows of three securities are listed below. If the cash flows are risk-free, and the risk-free interest rate is 4%, determine the no-arbitrage price of each security before the first cash flow is paid. Security Cash Flow Today ($) Cash Flow in One Year ($) A 600 600 В 1200 C 12005. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $9,200 will be worth $15,767.18 seven years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? O 8.00% O 5.83% 1.71% O 0.24% If an investment of $50,000 is earning an interest rate of 8.00%, compounded annually, then it will take a value of $89,052.92-assuming that no additional deposits or withdrawals are made during this time. Which of the following statements is true-assuming that no additional deposits or withdrawals are made? O If you invest $1 today at 15% annual compound interest for 82.3753 years, you'll end up with $100,000. O If you invest $5 today at 15% annual compound interest for 82.3753 years, you'll end up with $100,000. for…
- 5. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $2,000 will be worth $3,524.68 five years in the future, what is the implied interest rate the investor will earn on the security-assuming that no additional deposits or withdrawals are made? O 12.00% O 1.76% O 0.35% O 5.67% If an investment of $40,000 is earning an interest rate of 8.00%, compounded annually, then it will take for this investment to reach a value of $56,554.46-assuming that no aditional deposits or withdrawals are made during this time. Which of the following statements is true-assuming that no additional deposits or withdrawals are made? O If you invest $1 today at 15% annual compound interest for 82.3753 years, you'll end up with $100,000. O If you invest $5 today at 15% annual compound interest for 82.3753 years, you'll…5. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security currently worth $12,800 will be worth $16,843.93 seven years in the future, what is the implied interest rate the investor will earn on the security—assuming that no additional deposits or withdrawals are made? 7.60% 0.19% 4.00% 1.32% If an investment of $40,000 is earning an interest rate of 4.00%, compounded annually, then it will take for this investment to reach a value of $53,679.69—assuming that no additional deposits or withdrawals are made during this time. Which of the following statements is true—assuming that no additional deposits or withdrawals are made? It takes 14.21 years for $500 to double if invested at an annual rate of 5%. It takes 10.50 years for $500 to double if invested…which of the following investments that pay will $5000 in 12 years have a higher price today? A. The security that earns an interest rate it 8.25% B. The security that earns an interest rate of 5.50%?
- 10. Findingthe interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security of $12,000 will be worth $14,292.19 three years in the future, assuming that no additional deposits or withdrawals are made, what is the implied interest rate the investor will earn on the security? 4.50% 4.80% 6.00% 7.20% If an investment of $45,000 is earning an interest rate of 8.50% compounded annually, it will take for this investment to grow to a value of $79,656.40—assuming that no additional deposits or withdrawals are made during this time. Which of the following statements is true, assuming that no additional deposits or withdrawals are made? If you invest $5 today at 15% annual compound interest for 82.3753 years, you’ll end up with approximately $100,000. If you invest $1 today at 15%…What is the present value of a security that promises to pay you $5,000 in 20 years? Assume that you earn 7% if you were to invest in other securities of equal risk.Q24 A bond OMR 100 face value, 10 years to maturity, 4% annual coupon rate, and a annual required rate of return of 8%. What is the coupon payment amount of the Bond; assume that coupons are compounded monthly? a. OMR 2.000 b. OMR 1.000 c. OMR 0.333 d. OMR 4.000