A P30,000, 10% bond with quarterly coupons is redeemed at 98% at the end of 15 years. Find the redemption value. (Note: Don't us
1 answer:
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Answer:
present value = $12811.98
present value = $11428.17
present value = $9964.92
Explanation:
given data
injury settlement = $14,000
time = 3 year
opportunity cost = 3%
opportunity cost = 7%
opportunity cost = 12%
solution
we will apply here Present value formula that is
present value = ..............................1
put here value of opportunity cost rate we get
present value =
present value = $12811.98
and
present value =
present value = $11428.17
and
present value =
present value = $9964.92
Answer:
11.057 years
Explanation:
For computing the number of years we need to apply the NPER formula i.e to be represented in the attachment below:
Given that,
Present value = $1,000 × 8% ÷ 7.55% = $1,059.60
Assuming Future value = $1,000
Rate of interest = 7.2%
PMT = $1,000 × 8% = $80
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the number of years is 11.057 years
