For an optional redemption dates investment that pays 4% p.a payable half yearly payable at 110% of par, given that the net annual yield is 6% and the investor is not liable to tax the investment is likely to be paid at Select one: O a. Earliest possible date. O o. Latest possible date. O c. The date that the invesior specilies. O d. No real affect of the date.

For an optional redemption dates investment that pays 4% p.a payable half yearly payable at 110% of par, given that the net annual yield is 6% and the investor is not liable to tax the investment is likely to be paid at Select one: O a. Earliest possible date. O o. Latest possible date. O c. The date that the invesior specilies. O d. No real affect of the date.

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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Notes Payable Premiums Short Term Obligations Expected to be Refinanced Unearned Revenues Choose ] [Choose ] The cost of an item that is given away in return for boxtops, certificates, coupons, labels, or wrappers. Short term debts that are expected to mature within one year after the balance sheet date that will NOT require the use of working capital during the next year. Should be recorded only if it is probable that a liability has been incurred and the amount can be reasonably estimated. Obligations whose liquidation is reasonably expected to require use of a current asset, or the creation of other current liabilities. A liability that depends on the occurrence of one or more future events to confirm an existing condition, situation, or set of circumstances. A promise mde by a seller to a buyer to make good on a decifiency of quantity, quality, or performance in a product. A written promise to pay a certain amount of money with interest. The claim or right to receive assets, or…
No.2 only
(Annual percentage yield) Compute the cost of the following trade credit terms using the compounding formula, or effective annual rate. Note: Assume a 30-day month and 360-day year. a. 2/5, net 60 b. 4/15, net 30 c. 3/10, net 75 d. 4/15, net 60. BETER a. When payment is made on the net due date, the APR of the credit terms of 2/5, net 60 is%. (Round to two decimal places.)
Calculate the annual change in interest expense that would occur for a drop in interest rates from 6% to 4% for a borrower with $5,000,000 in variable-rate debt. a. -$100,000 Ob. $200,000 O c. $300,000 d. $100,000
The value of annual(A) uniform payments over years 1-5 is equivalent to a payment schedule of 200, 200, 240, 240, 240 for years 1-5 respectively at an interest rate of 10% .equals $340 True False
using formulas, no tables, correct answers are a) = 0.275454% pa, b) i^12 = 3.310009% pa. C)d^12 = 3.3009% Pa
Kk.205.
correct answer are PV= 2,276.55 and A = 4,724.73 No tables, only formulas, please Find the present value and the accumulation at the end of 10 years of a series of payments that are made up by: £200 annually in arrears during the first 3 years, £35 monthly in arrears thereafter, given that the following interest rates apply: 9% per annum effective for the first 5 years, 6% per annum nominal convertible monthly thereafter.
O FV = PV + (PV XIXN) O FV = PV x IXN O FV = PV / (PV XIX N) Identify whether the following statements about the simple and compound interest methods are true or false. Statement The process of earning compound interest allows a depositor or investor to earn interest on any interest earned in prior periods. After the end of the second year and all other factors remaining equal, a future value based on compound interest will never exceed the future value based on simple interest. All other factors being equal, both the simple interest and the compound interest methods will accrue the same amount of earned interest by the end of the first year. Investment A B C True Interest Rate and Method 8% simple interest 3% compound interest 5% compound interest O Expected Future Value Make this investment? $ $ $ O False Nicholai is willing to invest $30,000 for six years, and is an economically rational investor. He has identified three investment alternatives (A, B, and C) that vary in their…
6.
Using formulas, no tables, correct answers are i) s20 = £2,614.4 and ii) s20 = £1,715.12 and iii) s20 = £2,844.28
(2) a. At an effective rate of interest of 8% per annum, the present value of P 100,000 due in x years is P 65,322. Determine x. b. What deposit made today will provide for a payment of P 1,000 in 1 year and P 2,000 in 3 years, if the effective rate of interest is 7.5%? Total PV-PV of 1,000 at time 1 + PV of 2,000 at time 3. c. Ian will receive P50,000 at the end of each year for the next 4 years. Using an effective annual interest rate of 6%, find today's present value of all the amount Ian will receive.

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