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An annuity is set up that will pay $1,500 per year for ten years. What is the present Value (P that the discount rate is 9%? OA. $9,626 OB. $11,551 OC. $5,776 OD. $13,476

An annuity is set up that will pay $1,500 per year for ten years. What is the present Value (P that the discount rate is 9%? OA. $9,626 OB. $11,551 OC. $5,776 OD. $13,476

Essentials Of Investments
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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K An annuity is set up that will pay $1,500 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 9%? OA. $9,626 O B. $11,551 O C. $5,776 OD. $13,476
Transcribed Image Text:K An annuity is set up that will pay $1,500 per year for ten years. What is the present value (PV) of this annuity given that the discount rate is 9%? OA. $9,626 O B. $11,551 O C. $5,776 OD. $13,476
← The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8.6% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 9.7%, then the price that this bond trades for will be closest to: OA. $1,097 OB. $731 OC. $1,280 OD. $914 F
Transcribed Image Text:← The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8.6% and that the coupon payments are to be made semiannually. Assuming the appropriate YTM on the Sisyphean bond is 9.7%, then the price that this bond trades for will be closest to: OA. $1,097 OB. $731 OC. $1,280 OD. $914 F
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