Q1) Mike is expecting an inheritance of $5 million in four years. If he had the money
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Q1) Mike is expecting an inheritance of $5 million in four years. If he had the money today, he could earn interest at an annual rate of 5.25 percent. What is the present value of this inheritance?
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Q2) Mid Corp. is expecting annual cash flows of $100,000, $200,000, $250,000, and $300,000 over the next four years. If it uses a discount rate of 6.25 percent, what is the present value of this cash flow stream?
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Q3) You bought a corporate bond for $850 today. In five years the bond will mature and you will receive $1,000. What is the rate of return on this bond?
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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