Question
Calculate the present value of the cash flows given below Beginning in period one, you receive $100 each period for 30 years. Assume the discount
Calculate the present value of the cash flows given below
- Beginning in period one, you receive $100 each period for 30 years. Assume the discount rate is eight percent.
- Suppose you have a CONSOL bond that has the following payout, you receive $100 in the first period and for each subsequent period the cash flow increases by 4%. Assume the discount rate is eight percent.
- Suppose you hold a 30-year bond that has the following payout, you receive $100 in the first period and for each subsequent period, the cash flow increases by 4%. Assume the discount rate is eight percent.
Suppose that you hold a 30-year bond that pays you $100 every other year beginning in the second period. Assume the discount rate is eight percent
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To calculate the present value of cash flows you can use the formula for the present value of an annuity which is given by PV C 1 1 rn r Where PV Pres...Get Instant Access to Expert-Tailored Solutions
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