Full Question :
If the interest rate is 10%, what is the present value of a security that pays you $1100 next year, $1230 the year after, and $1331 the year after?
Answer:
The Present Value is $3,016.53
Explanation:
Kindly find attached for details.
Answer:. The redemption amount is 4438.18
Explanation:
Given:
F= 2000,
r= 5.5%,
Fr= 110,
j= 2.6%, 20 payments.
Then,
P=C-83.28 P= 110a20|2.6%+C(1 + 2.6%)-20, then,
C= 4438.18.
Therefore,
The redemption amount is 4438.18
Total revenue minus the costs of production, which are the explicit and implicit together, is profit. The answer is profit.
Answer:
6%
Explanation:
Given the following :
Amount of bond issued = $10,000,000
Cash paid = $300,000
Term of bond = 10years
Semiannual interest pay
The stated annual rate of interest on the bond can be calculated thus :
Rate of interest ;
Cash paid / Amount of bond issued
$300,000 / $10,000,000
= 0.03
0.03 * 100%
= 3% (semiannual interest)
Therefore, annual rate of interest :
Semiannual rate * 2
3% * 2 = 6%
