what is present value of perpetuity if annual coupon is $1,000 and discount rate is 10%

Q: rate of return of 10%. The coupon payment per quarter would be?

A: Coupon Rate: It is the rate at which the firm makes payment to the bondholder. These are coupon…

Q: An investment will pay you $80,000 in 10 years. If the appropriate discount rate is 9 percent…

A: Calculation of Present value (PV):

Q: What is the future value (FV) of $60,000 in five years, assuming the interest rate is 5% per year?

A: A study that proves that the future worth of the money is lower than its current value due to…

Q: What is the present value of your-end-of-year investment of $1000 per year, with the first cash flow…

A:

Q: You buy a new 1000 face value 5 year treasury with annual payments of 10. Current yield to maturity…

A: Treasury Bills is generally a debt instrument that is issued by the government . They are less risky…

Q: s the future value (FV) of $72,000 in 25 years, assuming the interest rate is 5.5% per year?

A: The worth of a present asset at a future date based on an expected rate of growth is known as future…

Q: Suppose that a person invests $5,000 today at an annual interest rate of 10% for 8 years. (a) Given…

A: Purchasing power represent the value of money that can be use to buy the amount of goods. Inflation…

Q: What is the present value of $12.200 to be received 4 years from today if the discount rate is 5…

A: Given Information: Amount to be received in future=$12.200 Number of years=4 Discount Rate=5%

Q: (Present Value of an Income Stream)Suppose the market interest rate is 10 percent. Would you be…

A: The present value of future income should be higher than the lending amount at present The formula…

Q: A fixed-income security pays out a dividend of $5 at the end of each year for 9 years, and a lump…

A: Annual dividend (D) = $5 Number of annual dividends (n) = 9 Lump sum amount (MV) = $105 Lump sum…

Q: An investment currently costs $28,000. If the current inflation rate is 6% and the effective annual…

A: Present value (PV)  = $ 28000 Future value (FV) = $ 40,000 Interest rate (r) = 10% Period = n0

Q: a. Calculate the future (terminal) value of each stream at the end of year 5 with a com- pound…

A: “Since you have posted multiple questions, we will solve first question for you. If you want any…

Q: What is the present value of your end-of-year investment of $1,000 per year, with the first cash…

A: According to the time value concept, the purchasing power of a sum of money today is more than the…

Q: What is the present value of an offer of $15,000 one year from now if the opportunity cost of…

A: Information given in the question is as follows: Amount one year from now (Future value) = $15000…

Q: You investe an amount of P50,000 with a promised interest of 9% compounded quarterly. How many years…

A: Since the quoted interest rate is compounded quarterly, the effective interest rate will be used to…

Q: What is the present value of $10,000 to be received at the end of 3 years if the discount rate is…

A: present value formula: present value=future value1+discount rateyear

Q: You will recieve $4000 three years from now. The discount rate is 10 percent.  c) What is the value…

A: We need use present value formula to solve this problem. Present Value =Future value/(1+r)n Where…

Q: A 60-day $100,000 T-bill was bought for $99,500. What rate of return will be realized if the T-bill…

A: Given: Face  value = $100,000 Present value = $99,500 Days = 60

Q: If a person saves $62 a month by using coupons and doing comparison shopping, (a) what is the amount…

A: Future Value of Ordinary Annuity refers to the concept which determines the sum total of all the…

Q: Answer the following questions: TIME VALUE OF MONEY years. What is the investment's FV at rates of…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: If a RM10,000 investment will return RM25,000 to you in five years, then to the nearest percent what…

A: Investment = RM10,000 Return = RM25,000 Period = 5 Years

Q: What is the future value of a 10-year investment ef $2000 at an APR of 5% compounded monthly? (Round…

A: The future value is the value of an asset on a future date on the basis of an assumed growth rate.…

Q: What is the present value of an investment that promises to pay you $ 1, 000 in five years if you…

A: Here, The present value is PV. The future value is FV. The maturity is n. The interest rate is r.

Q: An annuity pays $1000 per year for 12 years. Inflation is 6 percent per year. The annuity costs…

A: Internal rate of return is one of the modern techniques of capital budgeting which considers the…

Q: payments with 10 years to maturity. What is the dollar amount of the annual coupon payment?

A: Information Provided: Face value = $1000 Coupon rate = 9% Maturity = 10 years

Q: Suppose that you can make an annual profit of $600 on an investment of $4000. Suppose you borrow the…

A: In this we have to calculate the rate of return earned and from that we can real rate of return.

Q: An investment will pay $10,000 eighteen months from now. What purchase price will provide a rate of…

A: Maturity amount (MV) = $10,000 Interest rate (r) = 7% Period (m) = 18 months

Q: Approximately, what is the value of PG (present worth of arithmetic gradient) if G=25, n=6 years,…

A: Arithmetic Gradient is an equal amount which gets added to each subsequent annuity. It increases…

Q: If you pay $500 for an investment that returns $600 in 1 year, whatis your annual rate of return?…

A: Future value = Present Value * (1+r)^n Where, r = rate of interest  n = no. of years

Q: A 330-day T-Bill is currently selling at a discount rate of 3.97%. What will be the price of the…

A: The below expression can be used to calculate the current price of T-bill:

Q: The present value of P 14,000.00 has a true discount of P 14,700.00 in 7 years. How much is the rate…

A: Future value of amount  is computed as sum of present value  and true  discount.

Q: An annual growing perpetuity has a present value of $363,636.36  What is the growth rate (g) of this…

A: The time value of money is considered for determining the cash flows compounded and discounted…

Q: At a point in time, the asked (discount yield) of a 10,000 T-Bill is o.9%. How much is the price of…

A: Treasury bill is just like a promissory note which is issued by government. These bills are short…

Q: What is the future value of an annuity due that promises $60,000 per year for 10 years if the…

A: Annuity is regular payment to be made to investor. There are two types of annuities 1. Ordinary…

Q: What is the future value of an investment that pays P2,500 at the beginning of each period with an…

A: In this we have to find out the future values of payments.

Q: e future value (FV) of a $5,000 investment at a 10% inte

A: In this we have to calculate the future value using formula.

Q: What is the future value of $20,000 in three years at an annual interest rate of 5%?

A: given pv = 20000 n=3 i=5%

Q: You deposit $11,000 in an account that pays 6% interest compounded quarterly. A. Find the future…

A: Deposit = 11000 Nominal Rate = 6% Compounded Quarterly Interest Rate = Annual Rate / 4 = 6%/4 = 1.5%…

Q: If $43,000 is invested now, which of the following value is closest to the equivalent future dollars…

A: Time value It tells money received today has more worth than that of receiving the same value later…

Q: what is the value of a consol which pays RM40 semi-annually when the required rate of return is 10%?

A: Given: Semi annual payment = RM40 Required return = 10%

Q: What are the PW and FW of a 20-year geometric cash-flow progression increasing at 2% per year if the…

A: Present worth is the value of money today as compared to the future time. Present worth states that…

Q: If you invest sh.100,000 at an interest rate of 15 percent, how much will you have at the end of…

A: Note: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question…

Q: What is the present value of an investment that will pay $1,000 in one year's time, and $1,000 every…

A: Calculation of Present value of perpetuity:Answer:The present value of the investment is $12,500

Q: An investment that requires $3000 initial investment will return $1000 at the end of first year,…

A: