A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is u annuity that earns 7%, compounded quarterly, and pays $5000 at the end of each quarter. How long account balance is $0? (Round your answer UP to the nearest quarter.) 69.39 x quarters Suppose that a 30-year government bond has a maturity value of $1000 and a coupon rate of 4%, w semiannually. Find the market price of the bond if the yield rate is 3% compounded semiannually. (Ro the nearest cent.) $ 69.39 Is this bond selling at a discount or at a premium? discount O premium

A personal account earmarked as a retirement supplement contains $242,300. Suppose $200,000 is u annuity that earns 7%, compounded quarterly, and pays $5000 at the end of each quarter. How long account balance is $0? (Round your answer UP to the nearest quarter.) 69.39 x quarters Suppose that a 30-year government bond has a maturity value of $1000 and a coupon rate of 4%, w semiannually. Find the market price of the bond if the yield rate is 3% compounded semiannually. (Ro the nearest cent.) $ 69.39 Is this bond selling at a discount or at a premium? discount O premium

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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D3) Suppose the interest rate is 7.3% APR with monthly compounding. What is the present value of an annuity that pays $110 every six months for five years? (Note: Be careful not to round any intermediate steps less than six decimal places.)
Determine the periodic payments PMT on the given loan or mortgage. (Round your answer to the nearest cent.) $80,000 borrowed at 6% for 9 years, with monthly payments PMT = $
8- Suppose that you obtain a loan froma bank. The loan amount is 60.000 TL and has a 5 years maturity. You have to pay monthly installments and the annual interest rate is determined as 20%. Then, you put the 50.000 TL of the loan amount into a term deposit account on a monthly basis for 5 years, so that you pay your installments with the interest earned. To achieve an exact match between installments and interest income, what should be the annual interest rate on the term deposit? 38,15% 29,08% 34,23% O 25,19%
Use a bankers year: 360 T-bills (Treasury bills) are one of the instruments the U.S. Treasury Department uses to finance public debt. If you buy a 200-day T-bill with a maturity value of $17,750 for $17,564.46, what annual simple interest rate will you earn? Express your answer as a percentage.
You took out a $200,000 mortgage for 30 years. The contract rate is tied to the one-year U.S. treasury rate (index rate). The fixed risk premium for your mortgage is 9%. Your interest rate will be adjusted every year. For the first year, the index rate is 1.5%. What is the outstanding principal at the end of year 1? $95,758 $198,999 $197,769 $96,726
Please do both correctly, I'll rate the answer Question: (i) A $10,000 bond is purchased for $9600 and has a bond rate of 6% per year payable semiannually for 2 years. What is the interest rate? (ii) You borrow 35,000 for 10 years at 10% per year compounded monthly. After making 24 payments you decide to pay the loan off. What's that payoff amount?
Suppose the interest rate is 8.0% APR with monthly compunding. What is the present value of an annuity that pays $100 every six months for five years? (Be careful not to round any intermediate steps less than six decimal places.)
k. Five banks offer nominal rates of 9% on deposits, but A pays interest annually, B pays semiannually, C pays quarterly, D pays monthly, and E pays daily. Assume 365 days in a year. 1. What effective annual rate does each bank pay? If you deposit $6,000 in each bank today, how much will you have in each bank at the end of 1 year? 2 years? Round your answers to two decimal places. A E EAR % % % %24 24 FV after 1 year $ $4 2$ $4 FV after 2 years %24 2$ $ 2. If the TVM is the only consideration, what nominal rate will cause all of the banks to provide the same effective annual rate as Bank A? Round your answers to two decimal places. A-Z office Nominal rate % % % % 3. Suppose you don't have the $6,000 but need it at the end of 1 year. You plan to make a series of deposits – annually for A, semiannually for B, quarterly for C, monthly for D, and daily for E– with payments beginning today. How large must the payments be to each bank? Round your answers to the nearest cent. A D Payment $4…
question 1 In two years, a bond will start paying out an annual annuity of 20:-, after which the annuity will increase by 2% per year. The bond will pay out an annuity for 30 years. No face value has been paid in the last year. What does the bond cost today? Use a return requirement of 7%. Ignore taxes.
Please do both correctly, I'll rate the answerQuestion:(i) A $10,000 bond is purchased for $9600 and has a bond rate of 6% per year payable semiannually for 2 years. What is the interest rate?(ii) You borrow 35,000 for 10 years at 10% per year compounded monthly. After making 24 payments you decide to pay the loan off. What's that payoff amount? Note:- please dont use pen paper

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