A $1,000 bond was issued at 107.26. The 107.26 isMultiple choice question.the price and means the bond sold for $107.26a percent and means the bond sold for $1, 072.60the bond price plus 7.26% interest

When a bond is issued, it's often quoted as a percentage of its face value (also known as the par…

Answered: A $1,000 bond was issued at 107.26. The…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Down payment Annual payments Years Discount rate plan A 1.297.19 5.342.38 20 12% What is the present value of plan B? plan 8 2.869.46 7.761.18 20 12% $278.29 9.449.95 20 12%
Phyllis invested 50000 dollars, a portion earning a simple interest rate of 4 percent per year and the rest earning a rate of 7 percent per year. After one year the total interest earned on these investments was 2900 dollars. How much money did she invest at each rate? At rate 4 percent : At rate 7 percent :
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Kevin invested part of his $5000 bonus in a certificate of deposit (CD) that paid 2% annual simple interest, and the remainder in a mutual fund that paid 4% annual simple interest. If his total interest for that year was $140.00, how much did Kevin invest in the mutual fund? Group of answer choices Kevin invested $4986.00 in the mutal fund. Kevin invested $4846.00 in the mutal fund. Kevin invested $2000.00 in the mutal fund. Kevin invested $2140.00 in the mutal fund.
Question 2. Based on the following cash flow diagram, calculate the value of X with the interest rate of 10%. 150$ 150$ 15o$ 150$ 150$ 150$ 150$ 75$ 10 11 X= ?
6% n 1 2 3 4 5 6 7 8 9 10 Single Payments Compound Present Amount Worth P/F F/P 1.0600 1.1236 1.1910 1.2625 1.3382 TABLE 11 Discrete Cash Flow: Compound Interest Factors Uniform Series Payments Compound Amount F/A Capital Recovery A/P 1.4185 1.5036 1.5938 1.6895 1.7908 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 Sinking Fund A/F 1.00000 0.48544 0.31411 0.22859 0.17740 0.14336 0.11914 0.10104 0.08702 0.07587 1.0000 2.0600 3.1836 4.3746 5.6371 6.9753 8.3938 9.8975 11.4913 13.1808 1.06000 0.54544 0.37411 0.28859 0.23740 0.20336 0.17914 0.16104 0.14702 0.13587 Present Worth P/A 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 6.8017 7.3601 Arithmetic Gradients Gradient Present Worth P/G 0.8900 2.5692 4.9455 7.9345 11.4594 15.4497 19.8416 24.5768 29.6023 Gradient Uniform Series A/G 0.4854 0.9612 1.4272 1.8836 2.3304 2.7676 3.1952 6% 3.6133 4.0220 A family that won a $100,000 prize on America's Funniest Home Videos decided to put one-half of the money in a…
A joint former cost $65,000 to purchase and $115,000 to install seven years ago. The market value now is $35,000, and this will decline by 12 percent of current value each year for the next three years. Operating and maintenance costs are estimated to be $3,600 this year and are expected to increase by $500 per year. Click the icon to view the table of compound interest factors for discrete compounding periods when i= 10%. a. How much should the EAC of a new joint former be over its economic life to justify replacing the old one sometime in the next three years? The MARR is 10 percent. The EAC would have to be less than $ (Round to the nearest cent as needed.) b. The EAC for a new joint former turns out to be $10,300 for a 10-year life. Should the old joint former be replaced within the next three years? If so, when? A. Replace the old joint former in two years. B. Do not replace the old joint former. C. Replace the old joint former immediately. D. Replace the old joint former in one…
Ab 4 Economics Nabil is considering buying a house while he is at university. The house costs $200 000 today. Renting out part of the house and living in the rest over his five years at school will net, after expenses, $2000 per month. He estimates that he will sell the house after five years for $210 000. If Nabil’s MARR is 6 percent compounded monthly, should he buy the house? Use annual worth.
The following table lists several corporate bonds issued during the second quarter of 2015. Company AT&T Bank of America General Electric Goldman Sachs Verizon Wells Fargo Time to Maturity (years) 10 10 2 3 8. 7 Annual 3.40 4.00 5.25 6.15 5.15 3.50 Rate (%) If you spent $40,000 on Bank of America bonds, how much interest would you earn every 6 months? HINT [See Example 3.] $ How much interest would you earn over the life of the bonds? $
Determine the future value of $580 in 3 years from today at a steady interest rate of 7.5 percent.
A company has two independent investment opportunities. The initial capital occurs at the beginning of the first year. The company's required rate of return is 8 percent. The first option (A) requires an initial investment of 1500 million Fts with an expected life of 8 years. At the end of the 8th year company earns a yield of 4588.56 million Fts. The second option (B) requires an initial investment of 1400 million Fts with an expected life of 4 years. At the end of the 4th year company earns a yield of 2903.059 million Fts. The real profitability of the investments is between 5 and 25 percent. Calculate the Profitability Index of the project B! Give the result and choose the unit of the result. Answer:

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A $1,000 bond was issued at 107.26. The 107.26 is Multiple choice question. the price and means the bond sold for $107.26 a percent and means the bond sold for $1, 072.60 the bond price plus 7.26% interest