How much money, Ap, should you invest at the present in such a bond if you would like to receive perpetual monthly payments in the amount of R = $1200, assuming the monthly interest rate is i = 0.25%. You may assume the first payment is due in 1 month.

Q: tated face value? savings bond cost when you initially purchase it? Assuming 2.69 percent annually,…

A: NPER" stands for the "Number of Periods" in financial and investment calculations. It is a function…

Q: Consider a mortgage loan where the periodic payment is 1 and the per period mortgage interest is 5%.…

A: Perpetuity can be defined as a cash flow of equal amount at equal intervals of time with out an end.…

Q: How much of a mortgage could you afford? a.) $224,787.34 b.) $227,478.34 c.) $227,847.25 d.)…

A: PV = P x [1 - {1 / (1 + r)^n}] / r Here, PV = Present Value P = Monthly Payment i.e. $1500 r =…

Q: Assume the monthly payment of a loan amount of $400,000 is $1450. How long will it take to retire…

A: The loans are paid by the monthly payments and these are fixed and equal types of payments and they…

Q: Suppose a bank offers you an 6 25% interest rate on a 30-year mortgage to be paid back with monthly…

A: Monthly payment (C) = $1700 Monthly interest rate (r) = 0.00520833333333333 (i.e. 0.0625 / 12)…

Q: A 1000 bond bearing interest at 5.4% payable semi-annually is due in three years. If money is worth…

A: Purchase price of bond can be calculated by determining the present value of bond plus present…

Q: 3. You have the option of investing money in a bond that will help to grow your money. Bond A offers…

A: Effective annual rate is the interest actually earned on the investment or paid on the loan, as a…

Q: what is the payment every​ year

A: To calculate the payment at the end of each we will use below formulaAnnual payment = PV*rWherePV -…

Q: You have decided to buy a perpetual bond. The bond makes one payment at the end of every year…

A: Interest Rate = r = 5%Initial Cost of Bond = ic = $3000

Q: If you had two investments to choose from, one a perpetuity that pays $100/year forever, or the…

A: Alternative 1: Perpetuity that pays $100/year forever Alternative 2: Bond that pays interest of…

Q: Consider a 30-year, fixed-rate mortgage for $100,000 at a nominal annual rate of 9%. If the borrower…

A: GIVEN, N=30 P=$100,000 R=9% PAYMENT=12

Q: The bond will pay you $100 at the end of each year for three years. At the end of the third year,…

A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…

Q: A zera coupon bond with promised payment of $100 to be paid in 5 years has price equal to$80. What…

A: A bond refers to an instrument used by the issuing organization to raise debt capital from…

Q: Chuck's of Czechia is selling a perpetual bong that will provide the bondholder with a $50 / year…

A: Perpetual Bond is a bond with no maturity period of the bond and hence no redemption value. In such…

Q: 1. You have just obtained a commercial mortgage for $6.25M with a 5-year term, 25-year amortization…

A: We are required to calculate an amortization table, therefore, we have to use excel and the excel…

Q: If the interest rate is 15%, what is the present valueLOADING... of a security that pays you $1100…

A: Interest Rate = r = 15%Payment for year 1 = p1 = $1100Payment for year 2 = p2 = $1230Payment for…

Q: Quinn purchases a bond for $29,000 when the market interest rate is 13% per year, compounded…

A: Bond is a debt security that is issued by organizations to raise debt funds from investors in…

Q: a 20-year a

A: Years of amortization = 20 in months =20*12= 240 The per month discount rate = 4.25% /12=0.3542%=…

Q: ppose in the question above, the tuition obligations have a Macaulay duration of 4.35 in years, and…

A: Duration of the bond shows the weighted period of the bond required to recover the all cash flow…

Q: You have an opportunity to purchase a bond that will pay out $815 in 10 months. If you would like…

A: Payout in 10 months = $ 815 Interest rate = 2.2% Period = 10 months

Q: A borrower is making a choice between a mortgage with monthly payments or biweekly payments. The…

A: Mortgages are loan which are amortized over the period of the loan.It can be repaid in monthly or…

Q: You intend to purchase a 9-year, $1,000 face value bond that pays interest of $65 every 6 months. If…

A: A bond refers to an instrument issued by companies to raise debt capital from their investors. A…

Q: Many locations require that recent be paid interest on their security deposits. If you have a…

A: Present Value = $1,800 Time = 1 year Rate = 3%

Q: Use an amortization table (Use Spreadsheet application such as Excel) that determines the monthly…

A: Loans are paid by the same fixed monthly payments that carry the interest and loan payments.In this…

Q: What is the Macaulay duration of a $1 per year annuity-immediate payable for 10 years based on an…

A: Step 1:This is calculated as (1*1 / (1+0.05) + 2*1 / (1+0.05)^2 + ... + 10*1 / (1+0.05)^10) /…

Q: A borrower is making a choice between a mortgage with monthly payments or biweekly payments. The…

A: The rate of return, often abbreviated as ROR or RoR, is a measure used to evaluate the profitability…

Q: You are considering a savings bond that will pay $100 in 8 years. If the interest rate is 2.2%, what…

A: The objective of this question is to find out the present value of a savings bond that will pay $100…

Q: Suppose the government decides to issue a new savings bond that is guaranteed to double in value if…

A: Present value of annuity is the current value of the future payments that are calculated using the…