Der. 11% PRESENT VALUE OF $1.00 4% 6% 1 0.9615 0.9434 2 0.9246 0.89 3 0.889 0.8396 4 0.8548 0.7921 5 0.8219 0.7473 8% 0.9259 0.8573 0.7938 0.735 0.6806 9% 0.9174 0.8417 0.7722 0.7084 0.6499 10% 0.9091 0.8264 0.7513 0.683 0.6209 11% 0.9009 0.8116 0.7312 0.6587 0.5935 PRESENT VALUE OF A SERIES OF $1.00 CASH FLOWS 12% 15% Per. 4% 6% 8% 9% 10% 0.8929 0.87 1 0.9615 0.9434 0.9259 0.9174 0.9091 0.7972 0.76 2 1.8861 1.8334 1.7833 1.7591 1.7355 0.7118 0.66 3 2.7751 2.673 2.5771 2.5313 2.4869 0.6355 0.57 4 3.6299 3.4651 3.3121 3.2397 3.1699 0.5674 0.5 5 4.4518 4.2124 3.9927 3.8897 3.7908 0.9009 1.7125 2.4437 3.1024 3.6959 12% 0.8929 1.6901 2.4018 3.0373 3.6048 15% 0.8696 1.6257 2.2832 2.855 3.3522 0 1 2 PV=??? 60 60 60 1000 Disc't Rate=4% A Bond Problem 5. Dave is considering the purchase of a bond. The bond has a $1,000 face value and a contractual interest rate of 6%. How much should Dave pay for this bond, assuming that the market rate of return is 4%? Round your answer to the nearest whole dollar. Result Your answer: $ 0 0 1 2 PV=??? 5000 5000 5000 Disc't Rate=10% 6. Tanya is considering an investment that generates cash flows of $5,000 in year 1, $5,000 in year 2 and $5,000 in year 3, as shown in the cash flow sketch above. How much should Tanya pay for this series of cash flows today, assuming that she demands a rate of return of 10%? Round your answer to the nearest whole dollar. Result Your answer: $