Question
a- What is the present value of a perpetuity that pays you annual, end-of-year payments of $ 845? Use a nominal rate of 7.13 %.
a- What is the present value of a perpetuity that pays you annual, end-of-year payments of $ 845? Use a nominal rate of 7.13 %.
SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN ROUND TO THE NEAREST WHOLE NUMBER AT THE END. DO NOT ENTER THE $ SIGN SYMBOL..i.e. if your answer is 1,000 enter it as 1000.
b- What is the value of zero-coupon bond with a par value of $1,000 and a yield to maturity of 7.60%? The bond has 2 years to maturity. SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT THE NUMBER ROUNDING TO 2 DECIMALS i.e. if your answer is 1.2455, enter it as 1.25 ONLY
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