. A man borrows P2,000.00 from his friend on October 1, 2001 and promises to pay the principal and exact simple interest at 5% to discharge the debt on June 28, 2002 a. How many days will be charged with interest? b. How much does the man pay back his friend?

Q: An amortization of a debt is in a form of a gradient series of P20,000 on the first year, P19,500 on…

A: We have given  Year  cash flow ( end of the year) 1 20,000 2 19500 3 19000 4 18500 We…

Q: Calculate the annual interest (in $) and current yield (as a %) of the bond. (Round your percentage…

A: An interest rate is the amount of interest due per period, as an extent of the amount lent,…

Q: 1. P 1.00 is the principal which is invested at a nominal rate of 8% semi- annually. After one year…

A:

Q: The new iPhone 14 was released last week. You need a P12,000 immediately as a down payment on this…

A: Amount required = 12,000 r = 7% compounding continuously n = 8 years

Q: wery year you pay your neighbor $150 to clean the gutters at your house. You saw ad on late night TV…

A: Cash flow:The sum of the total money is represented in the diagram. It represents the magnitude and…

Q: QUESTION S What is the price of a three-year zero-coupon bond with a face value of $3000 when the…

A: The objective of the question is to calculate the price of a three-year zero-coupon bond with a face…

Q: Suppose a 10-year, $1,000 bond with a(n) 11% coupon rate and semiannual coupons is trading for a…

A: To calculate the bond's yield to maturity (YTM) and its price when the YTM changes, we can use the…

Q: Maya would like to borrow $4500. Her bank offered her a two-year personal loan with monthly…

A: Hi! thanks for the question but as per the guidelines, we answer only one question at one time.…

Q: • A man saves R200 at the end of each year and  lends the money at 5% compound interest. How much…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: In simple interest, the interest for the current period is computed based on the amount (principal…

A: When some amount is deposited in the bank as a principal, the bank pays interest to the savers…

Q: 1. You have borrowed $40,000 at an interest rate of 11%. Equal payments will be made over a…

A: We can use the following formula to calculate the annual payment:Annual payment = [principal * (1 +…

Q: An annuity-due has 26 payments of $200 per period. The effective rate of interest per period is 8%…

A: Annuity payment = 200 n = 26 effective rate for 12 years = 8% effective rate for 14 years = 4%

Q: 1. A person invest $10,000 into an account that earns 6% in interest over 20 years. 1. How much will…

A: here we calculate the amount by simple and compound interest , and observe which one gives extra…

Q: Peter Scents has been given two competing offers for short-term financing. Both offers are for…

A: A loan can be taken as either a discount loan or an interest-payment loan where discount loan…

Q: 1. The repair costs for some handheld equipment is estimated to be $120 the first year, increasing…

A: Present value is the value of investment in today's dollar.  Future value is the value of investment…

Q: Plan A: $50,000 down payment (time zero) and equal payments of $25,000 for 20 years. Plan B: $0…

A: An interest rate is the amount of interest due per period, as a proportion of the amount lent,…

Q: In how many years will $1,500 yield an interest of $200 at 2% simple interest?

A: given that, The principal sum is $1500 simple interest is $200 rate of interest is 2%

Q: 1- The six-month and one-year zero rates are both 10% per annum. For a bond that has a life of 18…

A: The current market interest rate determines the price of bonds. Bond prices are determined by…

Q: 3. What is the yield to maturity of a 15% coupon bond selling for $900 that has a face value of…

A: Yield to maturity (YTM) refers to the internal rate of return (IRR) an investor will receive on a…

Q: A state lottery gives a winner the choice of receiving the winning amount in equal monthly payments…

A: Present Value Of Annuity: An annuity is a regular cash inflow that happens at the end of each period…

Q: 8. Consider a 10 year 6.50% annual coupon bond whose duration is 7.50 years when required rate of…

A: Let the par value be 100 Purchase price of bond = 6.5/0.065*(1-1/1.065^10)+100/1.065^10 = 96.94 Let…

Q: Assume a bond with a remaining maturity of 3 years a. If the face value is $10,000 and coupon…

A: Given  Face value of coupon bond FV =$10000 Coupon payment (C)= $500 per year yield to maturity…

Q: 11) Devin purchased a $3500 bond paying 4.5% annual simple interest after graduating from college.…

A: Simple Interest:Simple interest is a method of calculating the interest rate on a loan or investment…

Q: A.Interest rate that adjusts if rates go down.   B.Has a balloon payment due at the end of the…

A: The fixed rate and adjustable rate mortgages are two primary form of mortgages. Fixed rate mortgages…

Q: A baseball player is offered a 5-year contract that pays him the following amounts: Year 1: $1.08…

A: The current worth of a sum of money to be received or paid in the future, adjusted for the time…

Q: Calculate the accrued interest (in $) and the total purchase price (in $) of the bond purchase.…

A: Given : Coupon rate=9.7% market price=79.75 Time period=23 days Commission per bond=$9.55 Bonds…

Q: Q2: If the present value of my investment $7000 and the rate of interest 5% what wil the value be in…

A: Present value of investment = $7000 Rate of interest =5%  Time =8 years

Q: Tom Evers an attorney is planning for retirement. He earns $126,000 a year and estimates that he…

A: Given,  Tom earns $126,000 and estimates that he will need 80% of his salary for retirement in 10…

Q: 18. Suppose your city is building a new park, and issues bonds to raise the money to build it. You…

A: Simple interest is used for calculating the charged interest on the loan.

Q: 3. Suppose you make an annual contribution of $2,000 to your savings account at the beginning of…

A: Future value (FV) is a term used to describe how much, at some future point and with a particular…

Q: 1. Consider a coupon bond that has a $1,000 par value and a coupon rate of 9%. The bond is currently…

A:

Q: Showing your working out, compute the price of all four bonds:     Face Value Maturity (years)…

A: The bond price is the present value of the future cash flow of the bond.  Bond price = present value…

Q: Maturity (years) Zero-coupon YTM 1 4.00% 2 4.30% 3 5 4.50% 4.70% 4.80% Consider a five-year,…

A: An investor who made a loan to the borrower as a fixed-income security is referred to as a bond. If…

Q: The yield to maturity is%. (Round your response to one decimal place.)

A: Yield to maturity (YTM) is the total rate of return that will have been earned by a bond when it…

Q: You invest $5,850 a year for 10 years. Use i from above. i=10% a. How much will you have after 10…

A: Hi! thanks for the questions but as per the guidelines, we can answer only 3 sub-parts at one time.…

Q: 1. A 3-year 10% coupon bond has $1000 face value. What is the duration of this bond? (Assume this…

A: A type of debt instrument used by governments or corporations to raise finance from the public is…

Q: 2. You have been hired as a financial advisor to Kansas City Chiefs quarterback, Patrick Mahomes. He…

A: Present value refers to the value of a future some on money in present. It is basically computed by…

Q: In 54 months time you expect a cash flow of $3 million. Calculate it’s present value (PV) given the…

A: Present value is the amount of a normal revenue source or income limited at the current pace of…

Q: 3. You just inherited P1,000,000. While you plan to squander some of it away, how much should you…

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Q: Question 1 :- (a) What is meant by an amortizing security? (b) What are the three components of…

A: Answer to the three sub parts are as follows:

Q: Gustav Co. is planning to issue new 30-year bonds. The current plan is to make the bonds…

A: Callable bonds are the bonds in which the issuer of the bonds has the right to call back or redeem…

Q: A twenty year bond with a $1000 face value was issued with a yield to maturity of 4.5% and pays…

A: Given Data,PV = 960.09FV = 1000

Q: Situation 2: Moondeath offers John Carlo a new insurance package with a premium fee of $3,500 per…

A: Insurance premium=  3500 per month Interest rate = 2.7%  compounding monthly So , we need to find…