Question
1.What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $2,400 at the end of Year 3 if the
1.What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $2,400 at the end of Year 3 if the interest rate is 5%?
| a. | $10,051.60 | |
| b. | $9,952.87 | |
| c. | $12,856.59 | |
| d. | $11,076.38 | |
| e. | $10,848.63 |
2.Suppose an Exxon Corporation bond will pay $5,500 ten years from now. If the going interest rate on safe 10-year bonds is 7.00%, how much is the bond worth today?
| a. | $2795.92 | |
| b. | $2,287.57 | |
| c. | $2,562.08 | |
| d. | $2,630.71 | |
| e. | $1,921.56 |
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Financial Crisis Causes Context And Consequences
Authors: Adrian Buckley
1st Edition
1553395417, 9781553395416
