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b) Write the equation for the PV of 200.000t to be received two years later when the market interest rate is forecast as 17%.

b) Write the equation for the PV of 200.000t to be received two years later when the market interest rate is forecast as 17%.

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
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QUESTION 4. Answer briefly the following questions: a) Write the formula of the Price-Earnings ratio and explain howa result of 11 should be interpreted. b) Write the equation for the PV of 200.000t to be received two years later when the market interest rate is forecast as 17%. c) Define the yield to maturity of a 4-year maturity bond whose face value will be repaid at the end of the maturity. d) Define the intrinsic value of a 2-year maturity bond whose face value will be repaid in equal installments.
Transcribed Image Text:QUESTION 4. Answer briefly the following questions: a) Write the formula of the Price-Earnings ratio and explain howa result of 11 should be interpreted. b) Write the equation for the PV of 200.000t to be received two years later when the market interest rate is forecast as 17%. c) Define the yield to maturity of a 4-year maturity bond whose face value will be repaid at the end of the maturity. d) Define the intrinsic value of a 2-year maturity bond whose face value will be repaid in equal installments.
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