1. A security pays you an annual amount of $900 for 10 years. The seller of the security requiresthe first payment to be made today and the last payment to be made 9 years from today.Interest rate on this security is 5.75 percent per annum. Calculate the present value rounded to2 decimal places.2. An investment promises to pay into an account that pays you 6 percent annually, $150 permonth for the next twenty-two years. Suppose the first deposit into the account is made onemonth from today what is the value of the amount which will be in the account at the end ofthirty years? Rounded to 2 decimal places.3. What will be the present value, if $5,400 is discounted back 4 years at an interest rate of 3%compounded semi-annually?

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1. A security pays you an annual amount of $900 for 10 years. The seller of the security requires the first payment to be made today and the last payment to be made 9 years from today. Interest rate on this security is 5.75 percent per annum. Calculate the present value rounded to 2 decimal places.

1. A security pays you an annual amount of $900 for 10 years. The seller of the security requires the first payment to be made today and the last payment to be made 9 years from today. Interest rate on this security is 5.75 percent per annum. Calculate the present value rounded to 2 decimal places.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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