A bond with a par value of 1,000 and with a bond rate of 10% payable annually is sold now for 1,080. If the yield is to be 12%, how much should the redemption price be at the end of 8 years?

Q: Q#1: Calculate (i) the interest rate for the given situations? 1. 8% Monthly 2. 6.4% Quarterly 3. 7%…

A: Disclaimer :- as you posted multipart questions we are supposed to solve the first 3 but third…

Q: 1. Find the interest paid on a loan of $2000 for 1 year at a simple interest rate of 7% per year.

A: Simple interest is a straightforward method of calculating how much you owe on a loan. The concept…

Q: None

A: Step 1:a.We have i = 12%, n = 12$600 (P/A, 12%,12) = 600 * 6.1944 PV = $3,716.62  Step 2:b.here we…

Q: 1) You have a goal of saving $1500 over 6 years. Assuming bank interest rates are 5%, What annual…

A: Here we calculate the annual deposit amount by the following method as follow;

Q: Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar…

A: The objective of the question is to calculate the present value of two different loans. The first…

Q: Calculate the future value (rounded to the nearest whole number) of monthly deposits of R500, made…

A: Future value can be calculated as follows. Monthly interest rate (i) is 0.0033. Time period is 360.…

Q: Write  the formula which is used to calculate the annual effective yield?

A: Effective yield refers to the return on a bond for which interest payments are reinvested by the…

Q: If a bond with a normal value (N) of £100 and a coupon of 2.5% can be bought a a market price (P) of…

A: Given bond value = 100 Euros Counpon rate = 2.5 % = 2.5 % of 100 = 2.5 Euros Market price of bond =…

Q: Generate the future value graph of $100, $500, for 1%,2%,5%, 10% interest rate for 10 years. Please…

A: Future value (FV) is a financial concept that represents the estimated value of an investment,…

Q: Cash Flow is based on the notion that a dollar paid in the future is less valuable than a dollar…

A: The objective of the question is to calculate the present value of two different loans. The present…

Q: The problem describes a debt to be amortized. (Round your answers to the nearest cent.)  A man buys…

A: The payment is made semi-annually. Thus, the time period is 24 semi-annual (12 years) period.…

Q: 1. How much must you deposit each year to have $20,000 at the end of 15 years with money worth 7%?

A: Future value = 20000 $ Time = 15 years Interest rate = 7 %

Q: Suppose that $4000 is placed in a bank account at the end of each quarter over the next 10 years.…

A: the proportion of a loan that is charged as interest to the borrower typically expressed as an…

Q: Determine the effective interest rate for the following cases a.10% compounded weekly b.10%…

A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three…

Q: QUESTION 2 1. You need $30,000 to buy a new Air-Con for your house in 4 years. What value you must…

A: The present value of a cash flow refers to its value at present based on its expected value in the…

Q: Suppose you borrow $5,000 at 7.25% interest for 14 months.  What is the maturity value?

A: Simple interest is one of the easiest method to compute the amount to be received at the end of…