Calculate the present value for various discounting periods. Find the present value of $1000 due in the future under each of these conditions: a. 12% nominal rate, annual compounaing, discounted back 5 years b. 12% nominal rate, semiannual compounding, discounted back 5 years 12% nominal rate, quarterly compounding, discounted back 5 years d. 12% nominal rate, quarterly compounding, discounted back 1 year e. 12% nominal rate, monthly compounding, discounted back 1 year f. What are the reasons due to which, the differences in the PVs occur? C.

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
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Calculate the present value for various discounting periods. Find the present value of $1000 due in the
future under each of these conditions:
12% nominal rate, annual compounaing, discounted back 5 years
b. 12% nominal rate, semiannual compounding, discounted back 5 years
12% nominal rate, quarterly compounding, discounted back 5 years
d. 12% nominal rate, quarterly compounding, discounted back 1 year
e. 12% nominal rate, monthly compounding, discounted back 1 year
What are the reasons due to which, the differences in the PVs occur?
а.
с.
f.
Transcribed Image Text:Calculate the present value for various discounting periods. Find the present value of $1000 due in the future under each of these conditions: 12% nominal rate, annual compounaing, discounted back 5 years b. 12% nominal rate, semiannual compounding, discounted back 5 years 12% nominal rate, quarterly compounding, discounted back 5 years d. 12% nominal rate, quarterly compounding, discounted back 1 year e. 12% nominal rate, monthly compounding, discounted back 1 year What are the reasons due to which, the differences in the PVs occur? а. с. f.
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