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A B C Amount of current deposit $20,00,000.00 Annual interest rate 6% Number of periods (years) 5 Future value of investment $26,76,451.16 2 Amount received

A B C Amount of current deposit $20,00,000.00 Annual interest rate 6% Number of periods (years) 5 Future value of investment $26,76,451.16 2 Amount received in 20 years 29,000.00 Annual interest rate 5% 8 Number of periods (years) 20 9 Present value of investment S 10,929.80 10 11 3 Amount of current savings $ 3,50,000.00 12 Expected value at retirement $ 8,00,000.00 13 Number of periods (years) 19 14 Annual interest rate 4.45% 15 16 Future Value 17 $500 per year for 8 years at 14% S 6,616.38 18 $250 per year for 4 years at 7% 1,109.99 19 $700 per year for 4 years at 0% S 2,800.00 20 21 5 Present Value 22 $600 per year for 12 years at 8% S 4,521.65 23 $300 per year for 6 years at 4% S 1,572.64 24 $500 per year for 6 years at 0% S 3,000.00G H 6 Bond C Bond Z Face value of each bond 1,000.00 $ 1,000.00 Years to maturity 4 4 4 Annual yield to maturity 8.20% 8.20% UT Annual coupon rate 11.50% 0% Annual coupon payment 115.00 $ 8 Years to Maturity Price of Bond C Price of Bond Z LO S 1,108.82 S 729.61 10 S 1,084.74 S 789.44 11 - NWA S 1,058.69 S 854.17 12 1,030.50 S 924.21 13 S 1,000.00 S 1,000.00F G H 1 6 Bond C Bond Z 2 Face value of each bond 1000 1000 3 Years to maturity 4 4 4 Annual yield to maturity 0.082 0.082 5 Annual coupon rate 0.115 O Annual coupon payment -H2*H5 =12*15 8 Years to Maturity Price of Bond C Price of Bond Z 9 4 =PV(H4,G9,-H6,-H2,0) =PV(14,G9,-16,-12,0) 10 3 =PV(H4,G10,-H6,-H2,0) =PV(14,G10,-16,-12,0) 11 -PV(H4,G11,-H6,-H2,0) =PV(14,G11,-16,-12,0) 12 =PV(H4,G12,-H6,-H2,0) =PV(14,G12,-16,-12,0) 13 =PV(H4,G13,-H6,-H2,0) =PV(14,G13,-16,-12,0)A B C 1 1 Amount of current deposit 2000000 2 Annual interest rate 0.06 Number of periods (years) 5 4 Future value of investment =FV(C2,C3,0,-C1,0) 6 Amount received in 20 years 29000 7 Annual interest rate 0.05 8 Number of periods (years) 20 9 Present value of investment =PV(C7,C8,0,-C6,0) 10 11 3 Amount of current savings 350000 12 Expected value at retirement 800000 13 Number of periods (years) 19 14 Annual interest rate -RATE(C13,0,-C11,C12,0) 15 16 4 Future Value 17 $500 per year for 8 years at 14% =FV(14%, 8,-500,0,0) 18 $250 per year for 4 years at 7% =FV(7%,4,-250,0,0) 19 $700 per year for 4 years at 0% =FV(0%,4,-700,0,0) 20 21 5 Present Value 22 $600 per year for 12 years at 8% =PV(8%,12,-600,0,0) 23 $300 per year for 6 years at 4% =PV(4%,6,-300,0,0) 24 $500 per year for 6 years at 0% =PV(0%,6,-500,0,0)K M N O 1 7 Bond A Bond B Bond C 2 Face value of bond 1000 1000 1000 3 Number of periods (years) 12 12 12 4 Annual coupon rate 0.07 0.09 0.11 5 Annual coupon payment =M2*M4 =N2*N4 =02*04 6 Annual yield to maturity 0.09 0.09 0.09 7 A. Bond is trading at? Discount Par Premium 8 B. Price of the bonds -PV(M6,M3,-M5,-M2,0) =PV(N6,N3,-N5,-N2,0) =PV(06,03,-05,-02,0) 9 C. Current yield of the bonds =M5/M8 -N5/N8 =05/08K F M N O 7 Bond A Bond B Bond C 2 Face value of bond $ 1,000.00 $ 1,000.00 1,000.00 Number of periods (years) 12 12 12 4 Annual coupon rate 7% 9% 11% 5 Annual coupon payment S 70.00 $ 90.00 $ 110.00 Annual yield to maturity 9% 9% 9% 7 A. Bond is trading at? Discount Par Premium 8 B. Price of the bonds S 856.79 $ 1,000.00 1,143.21 LO C. Current yield of the bonds 8.17% 9.00% 9.62%

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