11. Jared wants to invest money in a 6% savings account that compounds semiannually. Jared would like the account to have a balance of $110,000 2-years from now. How much must Jared deposit to accomplish his goal?

Q: An engineer paid P 110,000 for a P 100,000 bond that pays P 4,000 per year. In 20 years, the bond…

A: Here, Present Value of Bond or Price paid for Bond (PV) is P110,000 Face Value of Bond is P100,000…

Q: Amna has a housing loan of $50,000 over 15 years with a 6% interest rate. According to the Bank he…

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

Q: Assume that you purchased a $10,000 corporate bond. The interest rate is 7.00 percent. What is the…

A: Bond purchased amount (FV) = $10,000Interest rate = 7.00%

Q: bond with a face value of $6,000 pays quarterly interest of 3.5 percent each period. Thirty-four…

A: solution given Face value 6000 Quarterly interest rate 3.5% Number of period 34…

Q: You want to buy some bonds that will have a value of $1,000 at the end of 6 years. The bonds pay…

A: Bond after 6 years =$1,000 Years = 6 Bond Interest =7.90% Present value of Bond today =…

Q: Investor Matt has $184,000 to invest in bonds. Bond A yields an average of 5.4% and the bond B…

A: Total investment = $ 184,000 Yield of bond A = 5.4% Yield of bond B = 7.6% Ratio of bond A = 4/5…

Q: the owners choose to invest in bonds instead, they look at a $57,750.00 bond set to mature in 6…

A: Price of bond is the present value of coupon payment plus present value of the par value of the bond…

Q: Problem 3. David borrows an amount at an annual effective interest rate of 7.25% and will repay all…

A:

Q: A bond with a face value of $5,000 pays quarterly interest of 3.5 percent each period. Thirty-four…

A: The price of the bond is calculated by calculating the present value of all the future payments that…

Q: You are thinking about buying a savings bond. The bond costs $48 The bond will earn an annual rate…

A: Present Value = pv = $ 48Time = t = 12 YearsFuture Value = fv = $ 98

Q: Stacy purchases a $60,000 bond for $57,500.  The coupon rate is 6% per year payable quarterly.  The…

A: Bonds are debt securities issued by Government or other companies, who seek to raise money from…

Q: what is the payment every​ year

A: To calculate the payment at the end of each we will use below formulaAnnual payment = PV*rWherePV -…

Q: 4. An investor has P 70,000 and places part of it in bonds paying 12% interest per year and the rest…

A: We need to use simple interest formula  Simple interest =principal*rate *time

Q: You have decided to buy a perpetual bond. The bond makes one payment at the end of every year…

A: Interest Rate = r = 5%Initial Cost of Bond = ic = $3000

Q: A simple "EE US Treasury Savings Bond" pays the holder $1000 in 30 years. Given that the applicable…

A: To calculate  the bond cost we will use the below formula   Bond cost today = FV/[1+(r/m)]n*m Where…

Q: A corporation issues a bond that promises to pay you monthly coupons in the amount of $ 77.5 per…

A: Bond price refers to the market value at which a bond is traded. It represents the present value of…

Q: Arnold is planning to buy a house in 7 years. He plans to invest Rs. 425,000 in a fixed deposit with…

A: Investment period = 7 years Investment amount = 425,000 Interest rate = 12.05%

Q: You purchased a bond at a price of $800. In 15 years when the bond matures, the bond will be worth…

A: A bond reveals the debt instrument that allows the issuer to raise funds from the public. The holder…

Q: Ebony wants to invest $1000 in savings certificates that bear an interest rate of 7.5% compounded…

A: We can determine the time taken for the amount to be a certain value by rearranging the formula…

Q: Investor Matt has $152,000 to invest in bonds.  Bond A yields an average of 9.2% and the bond B…

A: Here, To Find: Maximum return =?

Q: Jon Snow purchased a bond, costing 1000, three years with a current price of 1,150. This bond paid…

A: Current price of bond is the sum of present value of cash flows from the bond.

Q: Investor Matt has $152,000 to invest in bonds. Bond A yields an average of 9.2% and the bond B…

A: A bond is a debt instrument used to raise capital for various projects. It can be traded on the…

Q: Mr. Simpson intends to buy a 4-year bond that promises to repay the face value of $2,000 in 4 years…

A: face value = $2000 Coupon rate = 2.25% Coupon Amount = 2000 * 2.25% = 45 Years(n) = 4 Interest…

Q: John purchases a $600 bond that has 6 remaining semi-annual 7% coupon payments for $510. What would…

A: The Par Value of the Bond is $600 The remaining payments are 6 The coupon rate is 7% Price of the…

Q: Please view the following video before answering this question. Click here to watch the video Ten…

A: Yield to maturity is computed as follows:-ytm = whereRV = Redemption valueNP = Net Proceedsytm =…

Q: Eren purchased a bond, costing 890, three years ago, with a current price of 925. This bond paid 100…

A: Price of bond =Present value of  value after 4 years +Present value of coupon payment.

Q: One hundred $1,000 bonds having bond rates of 8% per year payable annually are available for…

A: Bond valuation is done through the concepts of present value. The value of the bond is the present…

Q: The bond is selling at $160, maturing in 4 years with a face value of $200. the alternative choice…

A: Selling Price of Bond = 160 T = 4 years Face Value = 200   Interest Rate = 6%

Q: Greg wants to have $50 000 in five years. He has $20 000 today to invest. The bank is o ffering…

A: Amount Todays Invested = $20,000 Grag Want after 5 years = $50000 Years = 5 Let Interest Rate = r

Q: You need to borrow $206616 to buy a house today. If the bank offers you 3.14% APR per year, what is…

A: Compound = Monthly = 12Present Value = pv = $2066.16Interest Rate = r = 3.14 / 12 %Time = t = 30 *…

Q: Find the fair value of a perpetual bond which pays $100 every year forever. The discount rate for…

A: In this question we require to calculate the fair value of perpetual bond.

Q: Investor Matt has $601,000 to invest in bonds. Bond A yields an average of 8.8% and the bond B…

A: Bond A yield is 8.8% Bond B yield is 5.6% Total Investment is $601,000

Q: Bill wants to buy a bond. It has a face value of $10,000, a bond rate of 4% (nominal), payable…

A: Solution:- Bond price means the price at which the bond is currently trading in the market. We know…

Q: The bond will earn an annual rate of %. (Round to two decimal places.)

A: An investment that simulates a debt commitment is called a bond. A government, municipality,…

Q: As part of your inheritance, you received a bond that will pay interest of php$700 every 6 months…

A: The term bonds refer to the debt instruments that are issued with a motive to raise debt from the…

Q: You have decided to buy a perpetual bond. The bond makes one payment at the end of every year…

A: To calculate the payment at the end of each we will use below formula   Annual payment = PV*r Where…

Q: Gabe purchases a $700 bond that has 6 remaining semi-annual 7% coupon payments for $650. What would…

A: Par value = $ 700 Semi annual coupon rate = 7% Semi annual coupon amount = 700*0.07 = $ 49 Period in…

Q: 1. If the bond rate is 2%, will the bond be sold at a premium or a discount? Explain your answer.

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: b. John needs to pay $55,000, $60,000 and $65,000 at the end of next 3 years respectively. The…

A: i) Duration of the obligation will be,   = Σ( PV of CF*n) / Σ PV of CF    ;  PV of CF = Present…

Q: Ms. Jones want to make 12% nominal interest compunded quarterly on a bond investment. She has an…

A: Bond price is present discounted value of future cash stream generated by bond. It is the sum total…

Q: 52,000 is invested in a 5-year fixed interest bond paying 5.5% per year. If interest is reinvested…

A: Bond is a debt security which is issued by the organizations to raise funds. The investment in bonds…

Q: Suppose Roberto is considering a 12-year bond with a face value of $2,000 and a rate of 8% payable…

A: Face value = $ 2,000 Coupon rate = 8% Semi annual coupon amount = 2000*0.08/2 = $ 80 Years to…

Q: Kayla is considering an investment in either a bond or a financial instrument that has a return of…

A: Kayla has an option to either invest in bond or financial instruments that is providing a 0.5%…

Q: Avishek has an interest only loan for $100,000.00 maturing in 9 years. The interest rate on the loan…

A: Calculate the quarterly rate as follows: Quarterly rate =(1+Biweekly rate)264-1 Quarterly rate…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.