What is the present value of a $1000 bond paying $50 at the end of each year for the next 7 years when the market interest rate is 5%, please show the graph.
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What is the present value of a $1000 bond paying $50 at the end of each year for the next 7 years when the market interest rate is 5%, please show the graph.
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- Show the complete solution and diagram. A bond with a par value of 1,000 and with a bond rate of 10% payable annually is sold now for 1,080. If the yield is to be 12%, how much should the redemption price be at the end of 8 years?Generate the future value graph of $100, $500, for 1%,2%,5%, 10% interest rate for 10 years. Please use excelPlease use excel and explain how you solved it step by step thank you What is the present value of an investment of $5,000 per year for 8 years with 10% interest?
- Find the amount needs to be invested if the investors want to receive an annual net income worth 5,400,000 for 7 years. Use the Hoskold's Formula to compute the priceif the money is worth 8% on sinking fund and the yield of interest is 5%. Price =2. An investment will provide $10,000 at the end of 3 years. The investment receives interest at 12% compounded annually. a. What is the present value of the investment?7. Leon and Heidi decided to invest $3,000 annually for only the first eight years of their marriage. The first payment was made at age 20. If the annual interest rate is 12%, how much accumulated interest and principal will they have at age $65?
- Mr. Prudent has purchased a discount bond, that matures in 7 years with a payout of exactly $14,440. Assume that Mr. Prudent holds this bond for 3 years and then sells it in a secondary market. If the interest rate is 9.3%, then what price does he sell it for?8. What is the future value of a 7%, 5-year ordinary annuity that pays $300 each year?QUESTION 1 A student has inherited $5,000. If it is placed in a savings account that earns 4% interest, how much is in the account in 30 years? Assume that the unit for your answer is in $. Only state the numeric value of your calculation.
- Question 1: If you borrowed 18000$ at 4% annual interest. You agreed to repay the loan with five equal annual payments. How much of the total amount repaid is interest? How much of the third annual payment is interest, and how much principal is there? If you decided to pay off your loan after the third payment, how much will you pay?7. Consider a cash flow series of 40 payments. The first 20 payments are $1,000 per year and the last 20 payments are $2,000 per year. At 6% interest what is the present value of the cash flow series?Economics: • A man saves R200 at the end of each year and lends the money at 5% compound interest. How much will it become at the end of 3 years.