Answer:
11.89%
Explanation:
You can use a financial calculator to find the yield to maturity of the 2 year -zero coupon bond. Input the following;
Time to maturity; N= 2
Face value of the bond ; FV = 100
Annual coupon payments; PMT = 0 (since it's a zero-coupon bond)
Present value or price of the bond; PV = -79.88
Next, compute the annual interest rate; CPT I/Y = 11.89%
Therefore, the yield to maturity of the 2-year zero-coupon bond is 11.89%
Answer:
The anticipated collections for August are $1024800
Explanation:
Based on the past experience part, the cash inflows for August will include 8% of June's sales collection, 20% of July's sales collection and 70% of August's sales collection.
Thus, the anticipated collection for August will be:
- 8% of June' sales = 854000 * 0.08 = 68320
- 20% of July's sales = 1195600 * 0.2 = 239120
- 70% of August sales = 1024800 * 0.7 = 717360
Total anticipated collection-August = 68320 + 239120 + 717360 = $1024800
Answer:
FV= $94,108.42
Explanation:
<u>First, we need to calculate the future value of the 12 annual deposits:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {3,500*[(1.06^12) - 1]} / 0.06
FV= $59,044.79
<u>Now, the future value at the end of the 20 years (8 years more):</u>
FV= PV*(1 + i)^n
FV= 59,044.79*(1.06^8)
FV= $94,108.42
