You want to receive $5,000 per month in retirement. If you can earn 0.8% return per month and you expect to need the income for 28 years, how much do you need to have in your account at retirement? $582,032 $589,511 $596,123 $575,298
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You want to receive $5,000 per month in retirement. If you can earn 0.8% return per month and you expect to need the income for 28 years, how much do you need to have in your account at retirement?
|
$582,032 |
||
|
$589,511 |
||
|
$596,123 |
||
|
$575,298 |
A firm has issued a bond. The bond has a 6% coupon, paid semiannually, a current maturity of 15 years, and sell for $1,273.8. The firm’s marginal tax rate is 21%. What’s the firm’s after-tax component cost of debt?
|
3.62% |
||
|
2.86% |
||
|
6.00% |
||
|
12% |
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- $15,000 is deposited for 4 years in an account earning 8% interest. Calculate the future value of the investment if interest is compounded semiannually. ANS.$20,528.54 2.A bond with an $8000 face value has a 3.5% coupon and a 3-year maturity. What is the total of the interest payments paid to the bondholder? ANS.$840 ANSWERS ARE GIVEN. I JUST NEED TO KNOW THE SOLUTION. THANKSA few years ago, Zabar Technology issued an annual bond that has a face value equal to $1,000 and pays investors $40 interest semiannually. The bond has four years remaining until maturity. If an investor requires a 5% rate of return to invest in this bond, what is the maximum price he or she should be willing to pay to purchase the bond today? O $1,106.38 O $964.54 O $1,107.55 $935.37The ARA Corporation bonds have a coupon of 14%, pay interest semi-annually,and they will mature in 7 years. Your required rate of return for such an investmentis 10% annually.i) How much should you pay for a $1,000 ARA Corporation bond?ii) If you are given RM90,000, how many units of bond can you purchase?iii) What is the yearly interest income for this bond if I purchase it with RM90,000?iv) You plan to reinvest the coupon interest at 12% rate of return per annum. Calculate the value of the reinvestment, what is the figure will you get at the end of 7th years with your principle 2) Find the duration of the bond with the given information.Face value = RM1000Maturity = 6 yearsCoupon = 5%Bond value = RM1020 3) Recent dividend distributed RM1. Suppose a firm is expected to increase dividends by 20% in one year and by 15% in two years. After that, dividends will increase at a rate of 5% per year indefinitely. If the required return is 20%, calculate the stock. 4) Capital Bhd. just paid a…
- A company considers issuing a 5-year bond with a face value of $1,000 and annual coupon payments. The interest rate is 3% per year. If the company aims to raise $1,100 today through this bond, what should the coupon rate be? 2.15% per year 2.84% per year 3.54% per year 5.18% per yeaYou will receive a $60 interest every six months from your investment in a corporate bond. The bond will mature five years from now and it has a face value of $2,000. l11is means that if you hold the bond until its maturity, you will continue to receive $150 interest semiannually and $2,000 face value at the end of five years.(a) What is the present value of the bond in the absence of inflation if the market interest rate is 9% '?(b) What would happen 10 the value of the bond if the inflation rate over the next five years is expected to be 4%?The ARA Corporation bonds have a coupon of 14%, pay interest semi-annually, and they will mature in 7 years. Your required rate of return for such an investment is 10% annually. 1. How much should you pay for a $1,000 ARA Corporation bond? Use the bond equation formula.
- (a) The ARA Corporation bonds have a coupon of 14%, pay interest semi-annually, and they will mature in 7 years. Your required rate of return for such an investment is 10% annually. 1. How much should you pay for a $1,000 ARA Corporation bond? 2. If you are given RM90,000, how many units of bond can you purchase? 3. What is the yearly interest income for this bond if I purchase it with RM90,000? 4. You plan to reinvest the coupon interest at 12% rate of return per annum. Calculate the value of the reinvestment, what is the figure will you get at the end of 7th years with your principle (b) Find the duration of the bond using a table with the given information. Duration = Total PV of CF / current bond value Face value = RM1000 Maturity = 6 years Coupon = 5% Bond Value = RM1020A bond pays a coupon of $35 semi-annually. The bond matures in 9 years and you will receive $1,000 at that time. If the required return is 9%, how much should you be willing to pay for the bond today? Round to 2 decimal places. Include a dollar sign ($) or percent (%) as appropriate. AnswerThe ARA Corporation bonds have a coupon of 14%, pay interest semi-annually, and they will mature in 7 years. Your required rate of return for such an investment is 10% annually. 1. How much should you pay for a $1,000 ARA Corporation bond? 2. If you are given RM90,000, how many units of bond can you purchase? 3. What is the yearly interest income for this bond if I purchase it with RM90,000? 4. You plan to reinvest the coupon interest at 12% rate of return per annum. Calculate the value of the reinvestment, what is the figure will you get at the end of 7th years with your principle.
- A company issued a bond a few years ago that has a face value equal to $1,000 and pays investors $30 interest every six months. The bond has eight years remaining until maturity. If you require a 7 percent rate of return to invest in this bond, what is the maximum price you should be willing to pay to purchase the bond? * $965.63 $1,062.81 $939.53 $940.29 O $761.15Chuck's of Czechia is selling a perpetual bong that will provide the bondholder with a $50 / year forever. The first payment to the bondholder is later this afternoon and then the following payment is one year from now. Assuming an interest rate of 6%, what is the value of this bond? Choose the closest. a) $666.67 b) $833.33 c) $333.33 d) $883.33The ARA Corporation bonds have a coupon of 14%, pay interest semi-annually, and they will mature in 7 years. Your required rate of return for such an investment is 10% annually.i) How much should you pay for a $1,000 ARA Corporation bond?ii) If you are given RM90,000, how many units of bond can you purchase?iii) What is the yearly interest income for this bond if I purchase it with RM90,000?iv) You plan to reinvest the coupon interest at 12% rate of return per annum. Calculate the value of the reinvestment, what is the figure will you get at the end of 7th years with your principle.