what is present value of perpetuity if annual coupon is $1,000 and discount rate is 10%

Q: How much would1,000,000 due in 100 years with worth today if the discount rate is 20%?

A: Present Value is the current value of the future sum of money at the specific rate of return.

Q: What is the present value of a $700 perpetuity if the interest rate is 5%? If interest rates doubled…

A: The present value is the value of an asset or liability as of a specific date, adjusted for the time…

Q: What is the present value of an annuity due that promises $20,000 per year for 20 years if the…

A: The current value of the cash flow or stream of cash flow after discounting is termed as the present…

Q: If you invest at 1.59% APY, how many years will it take to turn $1 into $9?

A: The concept of time value of money will be used here. As per the concept of time value of money the…

Q: What is the present value of an annuity that pays $58 per year for 13 years and an additional $1,000…

A: We can make use of the financial calculator to obtain the present value, PV. Inputs: I/Y = rate =…

Q: An investment will pay you $80,000 in 10 years. If the appropriate discount rate is 9 percent…

A: Calculation of Present value (PV):

Q: If interest rate is 10% per year, which one of the following annuities give maximum benefit and…

A: In the given question, different set of annuities having different time periods and amounts is…

Q: What’s the present value of a perpetuity that pays $1500 per year if the appropriate  interest rate…

A: Cash flow per year is $1500 The interest rate is 15% To Find: the present value of a perpetuity

Q: s the future value (FV) of $72,000 in 25 years, assuming the interest rate is 5.5% per year?

A: The worth of a present asset at a future date based on an expected rate of growth is known as future…

Q: What is the present value of $12.200 to be received 4 years from today if the discount rate is 5…

A: Given Information: Amount to be received in future=$12.200 Number of years=4 Discount Rate=5%

Q: What is the present value of $9,500 to be received in 8 years if 7% is the proper discount rate?

A: Computation of present value: Hence, the present value is $5,529.09.

Q: What is the present value of a 3-year annutiy of $220 if the discount rate is 6%.

A: Annuity (pmt) = $220 Time Period (nper) = 3 years Discount Rate (rate) = 6%   The calculation of the…

Q: What is the present value of a stream of payments where the Year 1 payment is $120,000 and the…

A: The objective of the question is to calculate the present value of a growing annuity. A growing…

Q: An investment will pay you $83,000 in five years. Assume the appropriate discount rate is 6.75…

A: The concept of time value of money will be used to solve this question.   We need to find the…

Q: What is the present value (PV) of $1 million received 100 years from now, assuming the interest rate…

A: Future value is $1million Time period is 100 years Interest rate is 5%per year   To Find: Present…

Q: What is the present value of an offer of $15,000 one year from now if the opportunity cost of…

A: Information given in the question is as follows: Amount one year from now (Future value) = $15000…

Q: What is the future value (FV) of $20,000 in four years, assuming the interest rate is 4% per year? O…

A: Future value is that amount which will be require to paid at some specified period of time. It…

Q: If the interest rate is 5%, then the capitalized value of an investment that would be $ pays $8 per…

A: The capitalized value of an investment is the present value of the stream of income that the…

Q: An investment will pay you $100,000 in 10 years. If the appropriate discount rate is 6 percent…

A: Future value = fv = $100,000 Time = t = 10 * 365 = 3650 days discount rate = r = (1 + (0.06 / 365))…

Q: The present value of $100,000 that are expected at the end of one year, at an interest rate(discount…

A: We need to use present value formula below to calculate present value of expected future…

Q: You will recieve $4000 three years from now. The discount rate is 10 percent.  c) What is the value…

A: We need use present value formula to solve this problem. Present Value =Future value/(1+r)n Where…

Q: ay you $99,000 in 15 years. If the appropriate discount rate is 6.7 percent compounded quarterly,…

A: The given problem can be solved using PV and EFFECT function in excel. PV function computes present…

Q: a) What is the duration of a perpetuity with a yield of 8%?

A: Yield (r) = 8% Perpetuity duration is found using following formula:

Q: What is the future value of a perpetuity with annual payments of $1,000 compounding at 10%

A: Payment = p = $1000Interest Rate = r = 10%

Q: A 60-day $100,000 T-bill was bought for $99,500. What rate of return will be realized if the T-bill…

A: Given: Face  value = $100,000 Present value = $99,500 Days = 60

Q: Compute the PV of a perpetuity with monthly payments of $1,000, given an annual discount rate of 4%…

A: Present value refers to the current worth of a future sum of money or cash flow. It accounts for the…

Q: If the current rate of interest is 5%, then the future value (FV) of an investment that pays $1,000…

A: The question is based on the concept of future value calculation of annuity payment, by use of…

Q: What is the present value of aperpetuity of $50 per year if theannual interest rate is 10% andthe…

A: The objective of this question is to calculate the present value of a growing perpetuity. A…