You purchased a bond with a face value of $5,000 five years ago for $4,750. The bond pays a coupon rate of 4%, paid every 2 months (6 times a year). If you want an annual yield of 6%from the bond, how much should you sell the bond for now?Question 6 Part A: Provide values for the below-listed variables. Enter answer in the form 1234.56. For the unknown variable enter a question mark "?" symbol. For an interest rate of1.23%, enter 1.23.A0n1İ$CANVAS COURSE REFERENCE$/file ref/ga5cd5604fc09ef3b6f2e824126dbe933/download?download frd=1VariablePinFAValue

In this problem, we are given the following variables:P (Present Value): This is the price you paid…

Answered: You purchased a bond with a face value…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An investor has £13,000 in a fund generating a 5% return, with a 2.5% initial cost and an annual charge of 0.5%. What would that fund be worth after 5 years? Use the equation M = P (1+i)n to calculate the fund value.
Suppose you have an opportunity to invest in a fund that pays 11% interest compounded annually. Today, you invest $5,000 into this fund. Three years later (EOY 3), you borrow $2,500 from a local bank at 6% annual interest and invest it in the fund. Two years later (EOY 5), you withdraw enough money from the fund to repay the bank loan and all interest due on it. Three years from this withdrawal (EOY 8) you start taking $1,000 per year out of the fund. After five withdrawals of $1,000, you have withdrawn your original $5,000. The amount remaining in the fund is earned interest. How much remains? Click the icon to view the interest and annuity table for discrete compounding when i = 6% per year. Click the icon to view the interest and annuity table for discrete compounding when i= 11% per year. www
•If you deposit $100 now (n = 0) || and $200 two years from now (n = 2) in || a savings account that pays 10% interest, how much would you have at the end of year 10?
You are a Vice President of Finance for a small waste disposal company who has just been fined $500,000.00. You believe you will need the money in six years, currently money market rates are paying 2.00% . How much do you need to invest at 2.00% to each year to have the money available in six years? $83,569.69 $76,124.29 $79,262.91 $78,159.39
Stan Moneymaker has the opportunity to purchase a certain U.S. Treasury bond that matures in eight years and has a face value of $10,000. The bond stipulates a fixed nominal interest rate of 8% per year but interest payments are paid quarterly. Stan would like to earn 10% interest (compounded quarterly) on his investment. How much should Stan pay for the bond?
You sure it is 12.232 and not 14.232 for period 2?
Suppose you win a raffle held at a neighborhood elementary school fundraiser and are given the choice between two different ways to be paid. You can either accept the money in a lump sum immediately or in a series of payments over time. If you choose the lump sum payout, you receive $2,950 today. If you choose to collect payments over time, you receive three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. At an interest rate of 10% per year, the winner would be better off accepting the present value. At an interest rate of 12% per year, the winner would be better off accepting lump sum The lump sum is always better. The payments over time are always better. It will depend on the interest rate; advise her to get a calculator. O None of these answers is good advice. payments over time 7 since that choice has the greater since it has the greater present value. A couple years after you win the raffle, you and your friend are back at the same event. This…
Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A = $6000.00, r = 9.0%, t = 26 weeks (Round to the nearest cent.)
Three months ago, Jim purchased $11,000 of U.S. Treasury bonds. These bonds have a 30-year maturity period, and they pay dividends every three months at an APR of 17%. However, today's interest rates for similar securities have risen to a (17+1)%APR (compounded quarterly). In view of the interest-rate increase to (17+1)%, what is the current value of Jim's bonds today?
Please answer very soon will give rating surely
Suppose that on January, 1, 2022, you purchased a coupon bond with the following characteristics: • Face value: $1,000 • Coupon rate: 8 3/4 • Current yield: 7% • Maturity date: 2024 If the bond is selling for $900 on January 1, 2023, then the rate of return on this bond during the holding period of calendar year 2022 was Include minus sign to indicate a negative change, but do not include a plus sign for a positive change.) %. (Round your response to three decimal places.

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