You have been offered a bond that will pay you $10,000 on the last day of everyquarter for the next six years in exchange for a fixed payment today. What is thatfixed payment equal to if the appropriate annual interest rate on the investment is8%? compounded on a quarterly basis?$240,000$189,139.26$30,000O $46,228.80

To calculate the present value of a bond that pays $10,000 every quarter for six years at an annual…

Answered: You have been offered a bond that will…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Similar questions

You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
Assume that you can invest to earn a stated annual rate of return of 12 percent, but where interest is compounded semiannually. If you make 20 consecutive semiannual deposits of $500 each, with the first deposit being made today, what will your balance be at the end of Year 20? Group of answer choices $52,821.19 $57,900.83 $58,988.19 $62,527.47 $64,131.50
You invest $6780 in a floating rate guaranteed investment certificate. For the first 30 months you earn 4.9% compounded semi-annually. For the next 8 months you earn 4.32% compounded monthly. What is the approximate maturity value of the certificate? A. 7857 B. 7775 C. 7875 D. 7785
You invest $6780 in a floating rate guaranteed investment certificate. For the first 30 months you earn 4.9% compounded semi-annually. For the next 8 months you earn 4.32% compounded monthly. What is the maturity value of the certificate? a $7775.44 b $7785.44 c $7857.44 d $7875.44 e $7888.44
You have an opportunity to purchase a bond that will pay out $815 in 10 months. If you would like to earn at least a 2.2% annual rate of simple interest on your investment, what is the largest amount the you should pay for the bond? Round your answer to the nearest cent.
Assume you can obtain an annual interest rate of 12% compounding monthly. You are going to invest $1,000 for two years. What interest rate will be compounded? O 12% O 24% O 6% O 1%
You are considering borrowing $100,000 for 30 years at a compound annual interest rate of 9%. The loan agreement calls for 30 equal annual payments, to be paid at the end of each of the next 30 years. What is the annual payment that will fully amortize the loan? Select one: O a. $3,333.33 O b. $6,400.30 O c. $12,333.33 O d. $9,733.63 e. $8,423.33 You recently received a letter from Chase National Bank that offers you a new credit card that ?
A simple "EE US Treasury Savings Bond" pays the holder $1000 in 30 years. Given that the applicable interest rate on the bond is 2.5% APR compounded monthly, how much does the bond cost today? (The purchase date is always time t=0 for each transaction).
show the step by step solutions and what required it is
what is the annual interest that you would warn on a $1200 Treasury Bond with a current yield of 1.5% that is quoted at 98 points ?
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A bond with a face value of $4,000 pays quarterly interest of 1.5 percent each period. Twenty-two interest payments remain before the bond matures. How much would you be willing to pay for this bond today if the next interest payment is due now and you want to earn 8 percent compounded quarterly on your money?

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