A bond issue of P200,000 in 10-years, in P1,000 units paying 10% interest per annum payments, must be retired by the use of sinking fund that earns 8 % pa compounded monthly. What is the total annual expense? O P47,161.81 O P33,806 O P33,610.46 O P41,054

A bond issue of P200,000 in 10-years, in P1,000 units paying 10% interest per annum payments, must be retired by the use of sinking fund that earns 8 % pa compounded monthly. What is the total annual expense? O P47,161.81 O P33,806 O P33,610.46 O P41,054

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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Question

A bond issue of P200,000 in 10-years, in
P1,000 units paying 10% interest per annum
payments, must be retired by the use of
sinking fund that earns 8 % pa compounded
monthly. What is the total annual expense?
O P47,161.81
O P33,806
O P33,610.46
O P41,054

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What's the present value of $15,000 discounted back 5 years if the appropriate interest rate is 4.3%, compounded semiannually? Oa. $18,555.60 Ob. $9,845.74 Oc. $12,152.61 Od. $12,125.72 Oe. $13,486.50
9. A company borrows 1,000,000 at an annual effective discount rate of 4%. The loan is to be repaid with n annual payments of 100,000 plus a drop payment one year after the nth payment. The first payment is due two years after the loan is taken out. Calculate the amount of the drop payment. A 87.072.14 B 90,700.14 C 94,479.31 D 98,415.95 E 99,999.99
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