An investment in consol bonds promises to provide an interest payment of $2.5 million a year in perpetuity. If the interest rate is 3.3%, what is the value of this investment?
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What is the value of this investment on these financial accounting question?
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- What is the value of this investment of this financial accounting question?Please provide correct answer general accountingAn investment is expected to result in equal payments of $3160.00 at the end of each of the next 5 years. (ordinary annuity) If the appropriate rate of return (discount rate) is 10%, what is the present value of the annuity stream? (annual compounding)
- Which of the following investments that pay will $18,500 in 8 years will have a higher price today? The security that earns an interest rate of 8.50%. The security that earns an interest rate of 12.75%.Classify the financial problem. Assume a 9% interest rate compounded annually. What annual deposit is necessary to give $10,000 in 6 years? A.future valueB.amortization C.sinking fundD.present valueE.ordinary annuity Answer the question. (Round your answer to the nearest cent.)YTM
- Evaluate the net present value of following streams of income: a. $1000 per year at an interest rate of 5% in perpetuity. b. $1000 per year at an interest rate of 5% in perpetuity. c. $1 million per year at an interest rate of 5% in perpetuity. |d. $1 million per year in perpetuity, but not beginning until year t=5 at an interest rate of 15%.Your firm is considering two one-year loan options for a $506,000 loan. The first carries fees of 2.4% of the loan amount and charges interest of 3.6% of the loan amount. The other carries fees of 1.8% of the loan amount and charges interest of 4.7% of the loan amount. a. What is the net amount of funds from each loan? b. Based on the net amount of funds, what is the true interest rate of each loan?what;s the present value of perpetuity that pays % 1, 563 per year if the appropriate interest rate is 6.8% ?
- Assume annual mortgage payments of $12,000 for 30 years and an interest rate of 6.168% per year. What initial principal or PW will this repay?ou can assume that all payments are made at the beginning of the period and use "1" for the "type" argument in the formula. A. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded annually? B B. Suppose you invest $ 11,400 today. What is the future value of the investment in 29 years, if interest at 7% is compounded quarterly? 4 5 6 27 28 29 C. Suppose you invest St $ 570 monthly. What is the future value of the investment in 29 years, if interest at 5% is compounded monthly? Question 1 Question 2 + Ready Accessibility: Investigate MAR 17 A W +which of the following investments that pay will $5000 in 12 years have a higher price today? A. The security that earns an interest rate it 8.25% B. The security that earns an interest rate of 5.50%?