A financial instrument provides three future cash flows:1. $1,406.01 at the end of 2 years2. $2,596.43 at the end of 8 years3. $1,172.62 at the end of 13 yearsCalculate the duration (D) of the financial instrument at a yield of 7% pa compounded yearly. Give your answer in years to 2 decimal places.Dyears

Step 1:We have to calculate the duration of the financial instrument.We will use the excel for…

Answered: A financial instrument provides three…

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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Similar questions

What is the future value of four cash flows of $500 to be received at the end of each of 4 years with interest compounded annually at 6% (rounded to nearest dollar)? $2,030 $2,171 $2,187 $2,819
a. The future value of $15,000 invested at 5 percent for 9 years. Future value b. The future value of eight annual payments of $1,400 at 6 percent interest. Future value c. The amount that must be deposited today (present value) at 6 percent to accumulate $32,000 in five years. Present value d. The annual payment on a 11-year, 8 percent, $30,000 note payable. Annual payment
A series of equal semi-annual payments of $1,000 for 3 years is equivalent to what present amount at an interest rate of 12% compounded annually A.$2,402 B.$4,944 C.$4,804 D.$4,111
If the rate of earnings is 12% and the cash to be received in two years is $20,000, determine the present value amount, using the following partial table of present value of $1 at compound interest. Year 6% 10% 12% 1 0.943 0.909 0.893 2 0.890 0.826 0.797 3 0.840 0.751 0.712 4 0.792 0.683 0.636
An initial amount of $10,000 is deposited into a high-yield savings account with an 8.6% APR. Complete the table below, assuming that no additional deposits will be made. Round each answer to 2 decimal places. accumulated amount after 8 years effective rate years required for balance to be $100,000 interest compounded semiannually 1 $ 3 % per year 5 years interest compounded continuously 2 $ 4 % per year 6 years
need complete answer with working
Using the appropriate PV table, compute the present value of the following amounts: a. $24,000 payable at the end of each year for 5 years with 12% interest compounded annually.b. $16,000 receivable at the beginning of each semiannual period for 20 years with 10% interest compounded semiannually.c. $3,000 payable at the beginning of the seventh, eighth, and ninth years at 3% compounded annually.
For the cash flow revenues shown below, find the value of G that makes the equivalent annual worth in years 1 through 7 equal to $500. The interest rate is 6.00% per year. (Round the final answer to three decimal places.) Cash flow, $ Year 0 1 2 3 The value of G is $ 225.0 225.0+ G 225.0+2G Year 4 5 16 Cash flow, $ 225.0+36 225.0+4G 225.0+5G 225.0+66
Find the future value of $2500 deposited at the end of every 6 months for 10 years if interest is 6% compounded quarterly? a $67 329.89 b $62 368.65 c $57 809.17 d $50 000.00
Calculate the present value of the following single amounts. Future Value Annual Rate Interest Compounded Period Invested 1. $10,000 6% Annually 5 years 2. 7,000 8 Semiannually 8 years 3. 6,000 12 Quarterly 4 years
Determine the present worth of the following cash flows based on an interest rate of 7.46% per year, compounded annually. Round off to two decimal places. End of Year 0 = Php 5944 End of Year 1 = Php 5552 End of Year 2 = Php 5460 End of Year 3 = Php 5731 End of Year 4 = Php 5119 End of Year 5 = Php 5665
1. Calculate the present value of $8,000 receive five years from today if your investment pay a. 6 percent compound annually b. 8 percent compound annually c. 10 percent compound annually d. 10 percent compound semiannually e. 10 percent compound quarterly

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