Question
1.you have an opportunity to make an investment today that will provide the following cash flow: year 1 $8000 . year 2 $12000 year 3
1.you have an opportunity to make an investment today that will provide the following cash flow:
year 1 $8000 .
year 2 $12000
year 3 $18000
year 4 4000
With a required rate of return of 15%, what is the maximum investment you would be willing to make in this project
2.you make an initial investment of $55000 that provided the following cash flows:
year 1 $9000
year 2 $24000
year 3 $25000
year4 $10000
what annual rate of return has you investment produced?
3.what is the present value of an annuity due that pays you $7000 per month for twenty- two years? assume a 5% discount rate?
4. a $1000 per value, 6% semi annual coupon bond with twenty years remaining to maturity is priced at $1120, this bond is callable in seventeen years at a price of $1050
What is this bond's YTC?
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