Answer:
The correct answer to the following question will be "8%".
Explanation:
The given values are:
Number of years of maturity = 5 years
Interest rate of coupon = 10%
= 10%×1000
= 100
Yield to maturity, YTM = 8%
As we know,
Price of Bond = PV of Coupons + PV of Per Value
On putting the values in the above formula, we get
⇒ = 
⇒ = 
After 1 years, we get
Price of Bond = PV of Coupons + PV of Per Value
On putting the values in the above formula, we get
⇒ = 
⇒ = 
Now,
The total return rate = 
= 
= 
A. Bid/no bid decision
A "bid" is what contractors call their proposals, and in some cases it will not be worth it to even submit a proposal on a job. The stage where contractors decide if it is worth it is called bid/no-bid.
Answer:
Greetings, fellow companions. Today I want to talk to you about preparing for the future, for retirement, or anything else in your lives. Please listen carefully as we might save money, but not plan our life. The first factor that makes planning our future so important is that we all have things we want to do in our lives, but not having a strategy separate us from reaching our goals. The second factor that makes me talk about this is that majority of us are not prepared for what the future might have for us. Therefore we need to reduce our risks and our exposure to the events that are most likely going to be part of our life, like paying for our children's college or building a family business. Therefore, I invite you to plan your future, because if we don't do it. We are not going to be able to accomplish our goals.
Explanation:
The reasons backing my answer are that in the first place planning for the future is not very common, even though when we have savings accounts or retirement funds accounts. However, that is only a part of the whole process. Because we might not have seen the full picture to know exactly what are our requires steps to accomplish our goals. For example, if we want a strawberry farm that could provide money for our family, and their children we need to have the land, the knowledge, and the plans to develop our goal. Because if we only save and leave the planning for later. We might overwait, and when never take the first step. What would be the case if a strawberry farm would cost only fifty thousand dollars, and we keep working until we have five hundred thousand. We might have more money but we would have no plan, and we might have time past so far that we might help the children with the farm.
Answer:
It should cost $605,183.13 today.
Explanation:
Giving the following information:
Cash flow= $50,000
Number of years= 30
Interest rate= 7.25%
To calculate the present value, first, we need to calculate the final value using the following formula:
FV= {A*[(1+i)^n-1]}/i
A= cash flow
FV= {50,000*[(1.0725^30)-1]} / 0.0725
FV= $4,940,897.47
Now, we can calculate the present value:
PV= FV/(1+i)^n
PV= 4,940,897.47/ (1.0725^20)
PV= $605,183.13
