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1) Please solve for the question marks (round to the nearest whole number where applicable): P.V. Years Interest Rate Compounding F.V. ? 5 14% Monthly
1) Please solve for the question marks (round to the nearest whole number where applicable): P.V. Years Interest Rate Compounding F.V. ? 5 14% Monthly $3,725.00 $235.00 2 ? Semiannual $935.00 $6,250.00 8 6 3/4% Simple ? $3,750.00 ? 3 1/2% Annual $8,315.00 E) $1,075.00 3 19% Weekly ? F) Explain the differences between simple and compounded interest rates in light of the results you attained. 2) Please solve for the value of the following bonds and briefly explain your results: A) A U.S. Government Treasury Strip is quoted in the Wall Street Journal at a market price of 87:19 (87 and 19/32). If the strip is scheduled to mature in November 2026, what is the annual interest rate for this bond? B) Xenor Corporation introduced a bond in 2001 that offered a coupon rate of 8 1/2%, resulting in coupon payments of $8.50. The bond is scheduled to mature in 2031. If the current going interest rate in the market is 6 3/4%, what is the market price (please calculate the interest and the principal due to get this value) of this bond today? What is the bond selling for in the market relative to its initial value at the time the bond was introduced and what is the common term used to describe a bond that is selling at this price
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