Solve the following problems without using any software, do everything in digital format, explain the formulas, substitutions and result 1. A company has in its portfolio of assets 10 promissory notes of $ 200 each, with monthly maturities at the end of the month. The company needs liquidity and plans to sell them to a bank, which has accepted the transaction with an interest rate of 24% per year (2% per month). What amount will the company receive if the operation is carried out? In other words, what is the present value of these notes?
Solve the following problems without using any software, do everything in digital format, explain the formulas, substitutions and result 1. A company has in its portfolio of assets 10 promissory notes of $ 200 each, with monthly maturities at the end of the month. The company needs liquidity and plans to sell them to a bank, which has accepted the transaction with an interest rate of 24% per year (2% per month). What amount will the company receive if the operation is carried out? In other words, what is the present value of these notes?
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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Solve the following problems without using any software, do everything in digital format, explain the formulas, substitutions and result
1. A company has in its portfolio of assets 10 promissory notes of $ 200 each, with monthly maturities at the end of the month. The company needs liquidity and plans to sell them to a bank, which has accepted the transaction with an interest rate of 24% per year (2% per month). What amount will the company receive if the operation is carried out? In other words, what is the
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Present value is the worth of the asset today calculated by discounting the value of the asset by a discount factor.
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