37) You receive a perpetual cash flow of $500 every year from the University at Albany at arate of 8%. What is the value of this investment?a) Ad infinitumb) $40,125.00c) $1,000.37d) $6,250.00e) $500.0038) An interest rate is quoted at 10%, compounded semi-annually (six months). You have$110.25 at the end of the period for an interest rate of 10.25%. What is the 10.25% interestrate called?a) Stated interest rate.b) Annual Percentage Rate (APR)c) Effective Annual Rated) An Interest only loane) Simple interestFor Questions 39-41, please use the following example:Bank of America wants to issue a $1,000,000 bond. The rate on debt issued by comparable companyCitigroup is 12%. Thus, Bank of America will pay 12% per year in interest on monies borrowed for 30years. Bank of America repays the principal at the end of year 30.39) What is Bank of America's coupon payment?a) $1,000,000b) 12%c) 30 yearsd) $120,000e) Not able to calculate40) What is the par value of Bank of America's bond?a) $1,000,000b) 12%c) 30 yearsd) $120,000e) Not able to calculate

Since you have posted multiple questions, as per answering guidelines we shall be solving first…

37) You receive a perpetual cash flow of $500 every year from the University at Albany at a rate of 8%. What is the value of this investment? a) Ad infinitum b) $40,125.00 c) $1,000.37 d) $6,250.00 e) $500.00

37) You receive a perpetual cash flow of $500 every year from the University at Albany at a rate of 8%. What is the value of this investment? a) Ad infinitum b) $40,125.00 c) $1,000.37 d) $6,250.00 e) $500.00

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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1. LNU was able to earn a apply for a loan to invest for future university expansion. If the university where to choose a simple investment way of paying. If the initial 60, 000 PHP loan where to grow to 90, 000 PHP in 5 years. How high did the lender set his annual interest rate?
3. Assume that receive $2,000 a year in Years 1 through 5, $3,000 a year in Years 6 through 8, and $4,000 in Year 9, with all cash flows to be received at the end of you will the year. you require a 14 percent rate of return, what is the present value of these cash flows? If a. $ 9,851 b. $13,250 $11,714 $15,129 $17,353 C d. e.
Course Title: Principle Of Healthcare Finance Problem: Consider another set of net cash flows: Year Cash Flow 0 $2,000 1 2,000 2 0 3 1,500 4 2,500 5 4,000 What is the net present value of the stream if the opportunity cost of capital is 10 percent? What is the value of the stream at the end of Year 5 if the cash flows are invested in an account that pays 10 percent annually? What cash flow today (Year 0), in lieu of the $2,000 cash flow, would be needed to accumulate $20,000 at the end of Year 5? (Assume that the cash flows for Years 1 through 5 remain the same.)
Let the annual interest rate be 8%. Compute Enter an answer correct to 6 decimal places. 9| Enter an answer correct to 6 decimal places. A fund is to be created which pays out a scholarship of £1,000 every year in perpetuity. The first scholarship will be paid out in 4 years' time. Assuming an interest rate of 9%, how much should be paid into the fund? £ Enter an answer correct to 2 decimal places.
X school plans to establish an 'Excellent Student Fund' by giving RM 10,000 per person to 5 excellent students every year. Calculate the amount of money that needs to be kept in the X school fund so that the gift giving can start 1 year from now as a permanent annual activity. The savings interest rate is 10% per annum.
1. Let the annual interest rate be 6 %. Compute 871 Enter an answer correct to 6 decimal places. ä7 Enter an answer correct to 6 decimal places. 2. A fund is to be created which pays out a scholarship of £8,000 every year in perpetuity. The first scholarship will be paid out in 9 years' time. Assuming an interest rate of 2%, how much should be paid into the fund? £ Enter an answer correct to 2 decimal places.
How much would you invest today in order to receive $30,000 in each of the following? (for further instructions on present value in Excel, see the Suggested Resources in the textbook: https://cnx.org/contents/kg0cimBs@14.13:bDQCmuJO@6/Suggested-Resources) a. 10 years at 9% b. 8 years at 12% c. 14 years at 15% d. 19 years at 18%
Consider a Cash Flow Stream of equal amounts of 1500 dollars for 8 years and a discount rate of 10%. a. Calculate the PVOA and the FVOA, by using the Annuity Formulae that you have learned in your class. b. Calculate the PVAD and the FVAD. c. Show that the PVAD exceeds PVOA. d. Show that the FVAD exceeds FVOA.
a) In order to create an endowment, which pays Rs 500,000 per year, forever, how much money must be set aside today in the rate of interest is 10%? If the first payment of Rs 500,000 will be received after 3 years, what will be present value of such cash payment? b) Which deal is better, 8.4% compounded annually or 8.6% compounded quarterly or 8.7% compounded monthly? c) What is real interest rate if Rs. 500,000 is invest at 10% per annum for 5 years and inflation rate is 7%?
You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would increase the calculated value of the investment? Group of answer choices The cash flows are in the form of a deferred annuity, and they total to $100,000. You learn that the annuity lasts for 10 years rather than 5 years, hence that each payment is for $10,000 rather than for $20,000. The discount rate decreases. The riskiness of the investment's cash flows increases. The total amount of cash flows remains the same, but more of the cash flows are received in the later years and less are received in the earlier years. The discount rate increases.
Nala Inc. purchased a plot of land on which a $60,000 payment will be due each year for the next five years. What is the present value of these cash payments when the discount rate is 12%?
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