Question
1. Al-Israa Company issued financial bonds in the amount of 500,000 dinars for a period of ten years, at an interest rate of 10%, where
1. Al-Israa Company issued financial bonds in the amount of 500,000 dinars for a period of ten years, at an interest rate of 10%, where the interest is payable semi-annually. The market rate of return (market price) was 12%. Determine the market price for the exported years?
2. A telecom company is planning to purchase equipment and to cover its cost, it deposits annual savings of 20,000 dinars for a period of 10 years and obtains a resale value of 50,000 dinars at the end of that period. Assume that the interest rate is 9% and that savings are realized at the end of the year. Determine the present value of an investment in equipment (cost)?
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