File Insert Home Cut Page Layout Forms Data WW) - TVM and tested Review View Tell me what you want to do Copy Calibri - 10-AAE - A - Wat Format Painter Clipboard Merge a Normal - $ 7 Normal 11 Condial Format Forming Table Good Neutral et De Form Assume Shafer Corporation borrowed $100,000 for six years with stated interest of terest is not compounded leser W e b site PV0.7% 15.50000 S60 2.96 A note from Faust Corp. will mature and pay $ in 15 years. The note pays no interest. The current market interest rate for similar bond 10 10.7%. What price is this note selling for today? 11 The calculations above bichlicht the relationship between discounting interest rate and present value Face Hate vs. Market Rate A note from Exhau Corp. will mature and pay $100,000 in years. The note pays 2.3% interest in the end of every year. The current market 13 interest rate for similar bond is 1.%What price is this note selling for today? Use the Method 2 on Pate to answer this question A note from Exhau Corps will mature and pay $100,000 in 8 years. The note pays 28 Interest in the end of every year. The current market 14 interest rate for similar bond is 2.8%. What price is this note selling for today the Method on Pace 2 to answer the question A note from Exhau Corp. will mature and pay $100,000 in 8 years. The note pays 2.8interest in the end of every year. The current market 15 Interest rate for similar bond is 3.8%. What price is this note selling for today? Use the Methoden 2 to answer this question. 16 wy> The calculations above highlight the relationship between face rate and market rate. -Gven the same amount of time 17 Lower market interest rates lead to (higher/lower) selling price of a bond 18 When market rate face rate, selling price face value issuance at Premium Par Discount) 19 When market rate face rate, selling price face value - Issance at (Premium Par/ Discount 20 When market rate face rate, selling price valueIssuance at Applications 24 Shafer has a choice, which alternative is better? Christina decides to invest $352,480 today in a fund that will en annual interest compounde Kenney decides to invest $40.000 today because he would like to build a guitar factory for $100.000 in 17 years in 20 Interest rate the receive to reach the required amount 27 lason needs $40,000 in six years. What amount must she i s today ither investment earns 12 annual interest compounded water The Morgan Company plans to borrow money to purchase an office building for its headquarters. The building tha t has a price of $10 on the company will make a down payment of $2 million and take a first mortege on the balance of million. The lender agrees to provide a marmoreonthe principal of 5 million at an annual interest rate of 10, compounded monthly, with money payments at the end of each month. How much will 28 monthly on the more If the Morgan Company pays off its million more by monthly payments 570,205.73 at the end of each month for years, TVM Tesla Type here to search