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ASSIGNMENTS 1) Explain why future values will be greater if we use more frequent compounding periods? 2) What is an opportunity cost? How is this

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ASSIGNMENTS 1) Explain why future values will be greater if we use more frequent compounding periods? 2) What is an opportunity cost? How is this concept used in TVM analysis, and where is it shown on a time line? Is single number used in all situations? Explain 3) Explain whether the following statement is that or falas: $100 a year for 10 years is an annuity, but 5100 in Year 1, $200 in Year 2, and 5400 in Years 3 through 10 does not constitute an annuity. However, the second scries contains an annuity 4) Sally would like to use a 3-year mortgage loan to purchase a $35000 cost house. The payments will be made at the end of each year. The banks charge 8% on similar loans. Considering this information, complete the following are these show you calculations in detail a. Determine the annual payments that Sally is going to make to the bank b. Construct an amortization schedule showing the interest expense, payments, repayments, debt u the beginning and end of each car e. Calculate the percentage of the payments that represent and repayments for every year. d. Discuss why the interest/repayments composition in every year change. 5) Find the PV of an ordinary annuity that pays 5600 each of the next 5 years if the interest rate is 8% What is the annuity's TV? Please show your calculations in detail Assume Shark Co. is selling bonds that have a 25-year maturity with a coupon rate of 7% and 13005 par value. Moreover, the investors require minimum 10% from similar bonds. Calculate the sales price of Shark bonds. Please show yotsallation in 7) Last week Susu Company paid a dividend of 83.20. As a prospective firm, it is expected to grow 20% in the following 2 years Sorting from second year, the growth of the company would decline to 6%. Due to strong financial position and relatively lower risk, investors require 1256 from firm stock Calculate the stock price today. Please show your calculations in detail 3) Explain why a bond would sell at a premium or at a discount. In other words, discuss which factors would cause a premium of discount sale. Also, please explain in which direction bond prices change over time. Why? REQUIRED FORMULAS INT Pos Dps k Po- DI k DI Po- kg Pos PV-FV*PVIF FV-PVFVIFC. PVA-PmPVIFACS FVA-Pm"FVIFAG) Po-INT. PVIFAX) + FV PVIF, kr (1+ km)

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