What is the present value of a security that will pay 5, 000 in 20 years if securities of equal risk pay 7% annually?
Q: What is the present value of a security that will pay $32,000 in 20 years if securities of equal…
A: Future value is the ultimate value of an asset that an investor expects to receive from his…
Q: What is the present value of a security that will pay $7,000 in 20 years if securities of equal risk…
A: Given: Future value (FV) = 7000 Number of years (n) = 20 Interest rate (r) = 7% = 0.07
Q: What is the present value of a security that promises to pay you $15,000 in 10 years? Assume that…
A: The objective of this question is to calculate the present value of a future cash flow. In this…
Q: PRESENT VALUE What is the present value of a security that will pay $5,000 in 20 years if securities…
A: Given: Future value (FV) = $5000 Rate of interest (r) = 7% = 0.07 Time period (n) = 20 Years
Q: What is the present value of a security that will pay $40,000 in 20 years if securities of equal…
A: Calculate the present value as follows: Present value = Future value / (1+rate)^years
Q: What is the price of a perpetuity that has a coupon of$70 per year and a yield to maturity of 1.5%?…
A: A security that pays a return for an infinite time period is term as the perpetuity. It also…
Q: What is the present value of a security that will pay $2,000 at the end of each year for 6 years if…
A: The present value can be calculated as follows if the payments are made at the end : Calculations…
Q: What is the present value of a security that will pay $10,000 in 5 years if securities of equal risk…
A: Present value (PV) is a financial concept used to determine the current worth or value of a sum of…
Q: What is the present value of a security that will pay $18,000 in 20 years if securities of equal…
A: The objective of this question is to calculate the present value of a security that will pay $18,000…
Q: What is the present value of a security that will pay $11200 in 16 years if securities of equal risk…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: What is the present value of a security that will pay $13,000 in 20 years if securities of equal…
A: Present Value refers to a concept that states the discounted value or say value at today's time of…
Q: What is the present value of a security that will pay $29,000 in 20 yearsif securities of equal risk…
A: Present Value is a current value of a future payment. Future cash flows are discounted at the…
Q: Which of the following investments that pay will $9,500 in 14 years will have a lower price today?…
A: The objective of the question is to determine which of the two investments, one earning an interest…
Q: What is the present value of a security that will pay $10,000 in 20 years if securities of equal…
A: The formula used as follows: Present value=Future value1+rt
Q: What is the present value of a security that will pay $32,000 in 20 years if securities of equal…
A: We need to use the concept of time value of money to solve the question. According to the concept of…
Q: What is the present value of a security that will pay $6,000 in 20 years if securities of equal risk…
A: Present value (PV) is the current value of a future sum of money or stream of cash flows given a…
Q: What is the present value of a security that will pay $18,000 in 20 years if securities of equal…
A: Present value is the value of the money in current time that is expected to be received in future…
Q: What is the present value of a security that will pay $8,000 in 20 years if securities of equal risk…
A: The PV of an investment refers to the combined value of the cash flows of the investment assuming…
Q: What is the present value of a security that will pay $3,000 in 20 years if securities of equal risk…
A: Present Value: It is the present worth of the future amount and is estimated by discounting the…
Q: What is the present value of a security that will pay $17,000 in 20 years if securities of equal…
A: Present value is an estimate of the present value of future cash values that may be received at a…
Q: What is the present value of a security that will pay $10,000 in 20 years if securities of equal…
A: Future Value = fv = $10,000Time = t = 20 yearsInterest rate = r = 5%
Q: idering investing in a four year security which pays 6,000 in one year. 6,000 in two years, 6,000 in…
A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…
Q: What is the present value of a security that will pay $22,000 in 20 years if securities of equal…
A: The present value is the value of an asset or liability as of a specific date, adjusted for the time…
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- What is the present value of a security that will pay $18,000 in 20 years if securities of equal risk pay 8% annually? Round your answer to the nearest cent.What is the present value of a security that will pay $10,000 in 5 years if securities of equal risk pay 3.5% annually? What is the present value of a security that will pay $3,000 in 10 years if securities of equal risk pay 12% annually? What is the present value of a security that will pay $10,000 in 3 years if securities of equal risk pay 5% annually? What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually? What is the present value of a security that will pay $8,989 in 13 years if securities of equal risk pay 22% annually? What is the present value of a security that will pay $1,989 in 22 years if securities of equal risk pay 13% annually?What is the price of a perpetuity that has a coupon of$70 per year and a yield to maturity of 1.5%? If theyield to maturity doubles, what will happen to the perpetuity’s price?
- PRESENT VALUE What is the present value of a security that will pay $5,000 in 20 years if securities of equal risk pay 7% annually?Which of the following investments that pay will $9,500 in 14 years will have a lower price today? The security that earns an interest rate of 5.50%. The security that earns an interest rate of 8.25%.you are considering investing in a four year security which pays 6,000 in one year. 6,000 in two years, 6,000 in 3 years and 17,500 in 4 years. the security currently trades at a price of of 18,483.77. What is the yield to maturity of the security? What is duration?
- Which of the following investments that pay will $18,500 in 8 years will have a higher price today? The security that earns an interest rate of 8.50%. The security that earns an interest rate of 12.75%.Suppose on can invest in a money market instrument that matures in 70 days that offers 8% nominal annual interest rate, what is the effective annual interest return on this security? Effective Annual ReturnSuppose on can invest in a money market instrument that matures in 70 days that offers 9% nominal annual interest rate, what is the effective annual interest return on this security?
- You are considering investing in a security that will pay you RM1,000 in 'n' years. Required: How long do you have to invest if you start the investment of RM250 today with the appropriate discount rate of 10 percent quarterly? i. ii. Assume these securities sell for RM365, in return for which you receive RM1,000 in 30 years. What is the rate of return investors earn on this security if they buy it for RM365?Suppose that the constant and perpetual cash flow is $1,000 and the discount rate is 10%. What is the value of this perpetuity? 5-year bond with a coupon rate of 4% has a face value of $1000. What is the annual interest payment?A 2-year Treasury security currently earns 1.94 percent. Over the next two years, the real risk-free rate is expected to be 1.00 percent per year and the inflation premium is expected to be 0.50 percent per year. Calculate the maturity risk premium on the 2-year Treasury security.
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