Hi this is homework of financial management.Please give me an excellent answer

Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Highlight the answer in yellow. Assume that you are nearing graduation and have applied for a job with a local bank. The bank's evaluation process requires you to take an examination that covers several financial analysis techniques. Use the following information for Questions 1 through 2: 1. What is the present value of the following uneven cash flow stream $50, $100, $75, and $50 at the end of Years 0 through 3? The appropriate interest rate is 10%, compounded annually. 2. Suppose that on January 1 you deposit $100 in an account that pays a nominal (or quoted) interest rate of 11.33463%, with interest added (compounded) daily. How much will you have in your account on October 1, or 9 months later? Use the following information for Questions 3 and 4: A firm issues a 10-year, $1,000 par value bond with a 10% annual coupon and a required rate of return is 10%. 3. What is the yield to maturity on a 10-year, 9% annual coupon, $1,000 par value bond that sells for $887.00? That sells for $1,134.20? What does a bond selling at a discount or at a premium tell you about the relationship between the and the bond's coupon rate? 4. What are the total return, the current yield, and the capital gains yield for the discount bond in Question #3 at $887.00? At $1,134.20? (Assume the bond is held to maturity and the company does not default on the bond.) Q-1 Particulars Year Present Value factor of 10% Amount Present Value Cash Flow 0 1 ($50.00) ($50.00) Cash Flow 1 0.909090909 $100.00 $90.91 Cash Flow 2 0.826446281 $75.00 $61.98 Cash Flow 3 0.751314801 $50.00 $37.57 Total Present Value $140.46 Q-2 Nominal Rate (Annual) = 11.33463% Nominal Rate (Daily) (i) = 11.33463% x 1/365 = 0.03105% Amount in account on 1st October :No of days amount invested (t) = 274 Amount in account on 1 st Oct = Amount Invested at day 0 x Future Value factor of.03105% for 274 th day = $100 x 1.088786 = $108.8786 or $108.88 Amount in account after 9 months:No of days of amount invested (t) = 273 (January to September) Amount in account after 9 months = Amount Invested at day 0 x Future Value factor of.03105% for 273rd day = $100 x 1.088449 = $108.8449 or $108.85 Q-3 (using hit and trial method) If Bond Sells at $887.00 Let YTM be 11%, At YTM, net present value of cash inflows is equal to issue price Net present value = -$887.00 + (90 x 5.91113* + 1000 x 0.355#) = -$887 + $530.03 + $35 2.18 = ($4.78) Now Let YTM be 10% Net present value = -$887.00 + (90 x 6.14457* + 1000 x 0.38554#) = -$887 + $553.01 + $3 85.54 = $51.55 Now we will interpolate between 11% & 10% YTM = 10% + 1%{51.55/(51.55-(-4.78))} = 10% + 1% (51.55/56.33) = 10% + 0.915143 = 10.91514% (Approx.) If Bond Sells at $1,134.20 Let YTM be 8% Net present value = -$1,134.20 + (90 x 6.71008* + 1000 x 0.46319#) = -$1,134.20 + $463.19 + $603.19 = ($67.10) Now Let YTM be 7% Net present value = -$1,134.20 + (90 x 7.02358* + 1000 x 0.50835#) = -$1,134.20 + $508.35 + $632.12 = $6.27 Now we will interpolate between 7% & 8 % YTM = 7% + 1%{6.27/(6.27-(-67.10))} = 7% + 1% (6.27/73.37) = 7.08546% (Approx.) From the above analysis it can be seen that in case of bond issue d at discount has a Yield higher th an the coupon rate and in case of premium bond Yield is lesser than the coupon. (* denotes cumulative present value factor for 10 years & # denotes present value factor for 10 years Q-4 If Bond Sells at $887.00 Capital Gain yield = 1000/887 - 1 = 12.74% Current Yield = $90/$887 x 100 = 10.15% Total Return = Income Return + Capital Gain Return = $90*10 + 1000-887 = $1,013 Q-1 Particulars Year Year-1 Year-2 Year-3 Year-4 Present Value 0 1 2 3 Present Value factor of 10% 1.0000 0.9090 0.8264 0.7513 Amount Present Value ($50.00) $100.00 $75.00 $50.00 ($50.00) $90.91 $61.98 $37.57 $140.46 Q-2 Nominal Rate (Annual) = 11.33463% Nominal Rate (day basis) (i) = 11.33463% x 1/365 = 0.03105% a) Amount in A/c on 1st October:Number of days amount is invested in account (t) = 274 Amount in the account on the date 1st Oct = Amount Invested at day 0 x Future Value factor of 0.03105% for 274th day = $100 x 1.088786 = $108.88 (Approximately) b) Amount in account after 9 months:Number of days amount is invested in account (t) = 273 (January to September) Amount in account after 9 months = Amount Invested at day 0 x Future Value factor of 0.03105% for 273rd day = $100 x 1.088449 = $108.8449 or $108.85 Q-3 (using hit and trial method) a) If Bond Sells at $887.00 Let YTM be 11%, At YTM, net present value of cash inflows is equal to issue price Net present value = -$887.00 + (90 x 5.91113* + 1000 x 0.355 #) = -$887 + $530.03 + $352.18 = ($4.78) Now Let YTM be 10% Net present value = -$887.00 + (90 x 6.14457* + 1000 x 0.38554 #) = -$887 + $553.01 + $385.54 = $51.55 Now through interpolating between 11% & 10% YTM = 10% + 1%{51.55/(51.55-(-4.78))} = 10% + 1% (51.55/56.33) = 10% + 0.915143 = 10.91514% (Approx.) b) If Bond Sells at $1,134.20 Let YTM be 8% Net present value = -$1,134.20 + (90 x 6.71008* + 1000 x 0.46319 #) = -$1,134.20 + $463.19 + $603.19 = ($67.10) Now Let YTM be 7% Net present value = -$1,134.20 + (90 x 7.02358* + 1000 x 0.50835 #) = -$1,134.20 + $508.35 + $632.12 = $6.27 Now through interpolating between 7% & 8% YTM = 7% + 1%{6.27/(6.27-(-67.10))} = 7% + 1% (6.27/73.37) = 7.08546% (Approx.) From the above analysis it can be seen that in case of bond issued at discount has a Yield higher than the coupon rate and in case of premium bond Yield is lesser than the coupon rate. (* denotes cumulative present value factor for 10 years & # denotes present value factor for 10 years) Q-4 a) If Bond Sells at $887.00 Capital Gain yield = 1000/887 - 1 = 12.74% Current Yield = $90/$887 x 100 = 10.15% Total Return = Income Return + Capital Gain Return = $90*10 + 1000-887 = $1,013 b) If Bond Sells at $1,134.20 Capital Gain yield = 1000/1134.20 - 1 = (11.83%) Current Yield = $90/$1134.20 x 100 = 7.94% Total Return = Income Return + Capital Gain Return = $90*10 + 1000-1134.20 = $765.80 The following 104 documents likely make use of the text that you entered: Bond valuation ...b If Bond Sells at $1...a If Bond Sells at $887...b If Bond Sells at $1...a If Bond Sells at $887...Current Yield = $90 $887 x 100 = 10...b If Bond Sells at $1...a If Bond Sells at $887...Current Yield = $90 $887 x 100 = 10...a If Bond Sells at $887...Current Yield = $90 $887 x 100 = 10...b If Bond Sells at $1... Url: http://en.wikipedia.org/wiki/Bond_valuation Rank:28% Current yield ...b If Bond Sells at $1...a If Bond Sells at $887...b If Bond Sells at $1...a If Bond Sells at $887...Current Yield = $90 $887 x 100 = 10...b If Bond Sells at $1...a If Bond Sells at $887...Current Yield = $90 $887 x 100 = 10...a If Bond Sells at $887...Current Yield = $90 $887 x 100 = 10...b If Bond Sells at $1... Url: http://en.wikipedia.org/wiki/Current_yield Rank:28% Wikipedia:Reference desk/Archives/Humanities/2010 October 11 ...b If Bond Sells at $1...a If Bond Sells at $887...b If Bond Sells at $1...a If Bond Sells at $887...b If Bond Sells at $1... Url:http://en.wikipedia.org/wiki/Wikipedia:Reference_desk/Archives/Humani ties/2010_October_11 Rank:14% 1990 in Australia ...b If Bond Sells at $1...a If Bond Sells at $887...b If Bond Sells at $1...a If Bond Sells at $887...b If Bond Sells at $1... Url: http://en.wikipedia.org/wiki/1990_in_Australia Rank:14% Penalized present value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Penalized_present_value Rank:10% Present value of new business premiums ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Present_value_of_new_business_premiums Rank:10% Profitability index ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Profitability_index Rank:9% Wikipedia:WikiProject Spam/LinkReports/financet.org ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Wikipedia:WikiProject_Spam/LinkReports/fi nancet.org Rank:9% Actuarial present value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Actuarial_present_value Rank:9% Beckstrom's law ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Beckstrom's_law Rank:8% Discounted maximum loss ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Discounted_maximum_loss Rank:8% Accretion (finance) ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Accretion_(finance) Rank:8% Value-in-use ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Value-in-use Rank:8% Net present value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Net_present_value Rank:8% Optimal rotation age ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Optimal_rotation_age Rank:8% Tax amortization benefit ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Tax_amortization_benefit Rank:8% Present value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Present_value Rank:8% Time value of money ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Time_value_of_money Rank:8% Hattendorf's theorem ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Hattendorf's_theorem Rank:8% Discounted cash flow ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Discounted_cash_flow Rank:7% Discount rate ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Discount_rate Rank:7% Perpetuity ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Perpetuity Rank:7% Loan life coverage ratio ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Loan_life_coverage_ratio Rank:7% Mortgage yield ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Mortgage_yield Rank:7% PVIFA ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/PVIFA Rank:7% RNPV ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/RNPV Rank:7% Capitalization (disambiguation) ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Capitalization_(disambiguation) Rank:7% Market value added ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Market_value_added Rank:7% 4294967295 ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/4294967295 Rank:7% Principles of Corporate Finance ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Principles_of_Corporate_Finance Rank:7% Mortgage Assumption Value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Mortgage_Assumption_Value Rank:7% Wikipedia:Reference desk/Archives/Mathematics/2009 April 30 ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url:http://en.wikipedia.org/wiki/Wikipedia:Reference_desk/Archives/Mathe matics/2009_April_30 Rank:7% Actuarial notation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Actuarial_notation Rank:7% Asset retirement obligation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Asset_retirement_obligation Rank:7% Actuarial reserves ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Actuarial_reserves Rank:7% Annuity ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Annuity Rank:7% Modified internal rate of return ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Modified_internal_rate_of_return Rank:7% Valor actualizado penalizado ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://es.wikipedia.org/wiki/Valor_actualizado_penalizado Rank:7% Fisher separation theorem ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Fisher_separation_theorem Rank:7% Intrinsic value (finance) ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Intrinsic_value_(finance) Rank:7% File:CBO - Effect of Policy options on Social Security.png ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/File:CBO__Effect_of_Policy_options_on_Social_Security.png Rank:7% Module:Infobox/Fort romain ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://fr.wikipedia.org/wiki/Module:Infobox/Fort_romain Rank:7% Entity-Methode ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://ge.wikipedia.org/wiki/Entity-Methode Rank:7% Accumulation function ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Accumulation_function Rank:7% Zillmerisation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Zillmerisation Rank:7% CLV ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/CLV Rank:7% Agrarian Bonds in Peru ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Agrarian_Bonds_in_Peru Rank:6% Fiscal gap ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Fiscal_gap Rank:6% Minimum acceptable rate of return ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Minimum_acceptable_rate_of_return Rank:6% Account (accountancy) ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Account_(accountancy) Rank:6% Betafaktor ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://ge.wikipedia.org/wiki/Betafaktor Rank:6% Single-stock futures ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Single-stock_futures Rank:6% Dividend discount model ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Dividend_discount_model Rank:6% Discounting ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Discounting Rank:6% Royalty rate assessment ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Royalty_rate_assessment Rank:6% Geometric series ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Geometric_series Rank:6% Project finance model ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Project_finance_model Rank:6% Bond convexity ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Bond_convexity Rank:6% Bond duration ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Bond_duration Rank:6% Land and Buildings Transaction Tax ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Land_and_Buildings_Transaction_Tax Rank:6% APV-Ansatz ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://ge.wikipedia.org/wiki/APV-Ansatz Rank:6% Finance lease ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Finance_lease Rank:6% Box spread ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Box_spread Rank:6% Customer lifetime value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Customer_lifetime_value Rank:6% Swap (finance) ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Swap_(finance) Rank:6% Discounted utility ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Discounted_utility Rank:6% Black's approximation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Black's_approximation Rank:6% EV ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/EV Rank:6% Fisher equation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Fisher_equation Rank:6% Till v. SCS Credit Corp. ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Till_v._SCS_Credit_Corp. Rank:6% Wikipedia:Reference desk/Archives/Mathematics/2008 September 23 ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url:http://en.wikipedia.org/wiki/Wikipedia:Reference_desk/Archives/Mathe matics/2008_September_23 Rank:6% Michigan Mile And One-Eighth Handicap ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Michigan_Mile_And_One-Eighth_Handicap Rank:6% Service release premium ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Service_release_premium Rank:6% PV ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://ge.wikipedia.org/wiki/PV Rank:6% Rentenbarwertfaktor ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://ge.wikipedia.org/wiki/Rentenbarwertfaktor Rank:6% Template:Cite OED/doc ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Template:Cite_OED/doc Rank:6% Faustmann's formula ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Faustmann's_formula Rank:6% United States v. Drescher ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/United_States_v._Drescher Rank:6% Earnings before interest, taxes, and depreciation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Earnings_before_interest,_taxes,_and_depr eciation Rank:6% Net premium valuation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Net_premium_valuation Rank:6% Annual premium equivalent ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Annual_premium_equivalent Rank:6% Brand valuation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Brand_valuation Rank:6% Pasteur point ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Pasteur_point Rank:6% Separation theorem ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Separation_theorem Rank:6% Wikipedia:Reference desk archive/Mathematics/2006 July 13 ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url:http://en.wikipedia.org/wiki/Wikipedia:Reference_desk_archive/Mathem atics/2006_July_13 Rank:6% Equivalent annual cost ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Equivalent_annual_cost Rank:6% Rozalex ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Rozalex Rank:6% Stumpage ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Stumpage Rank:6% Future value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Future_value Rank:6% Capital budgeting ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Capital_budgeting Rank:6% Terminal value (finance) ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Terminal_value_(finance) Rank:6% Amortization schedule ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Amortization_schedule Rank:6% Internal rate of return ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Internal_rate_of_return Rank:6% Benefit-cost ratio ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Benefit-cost_ratio Rank:6% Constant maturity credit default swap ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Constant_maturity_credit_default_swap Rank:6% Accretion expense ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Accretion_expense Rank:6% Intertemporal budget constraint ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Intertemporal_budget_constraint Rank:6% Tax shield ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Tax_shield Rank:6% Life-cycle cost analysis ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Life-cycle_cost_analysis Rank:6% Marginal efficiency of capital ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Marginal_efficiency_of_capital Rank:6% Embedded value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Embedded_value Rank:6% Outline of actuarial science ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Outline_of_actuarial_science Rank:6% Appraisal value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Appraisal_value Rank:6% Adjusted present value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Adjusted_present_value Rank:6% Detailed Search Report Found Queries: 11/37 Found Documents: 104 Rank: 29% Q-1 Particulars Year Present Value factor of 10% Amount Present Value Year-1 0 1.0000 ($50.00) ($50.00) Year-2 1 0.9090 $100.00 $90.91 Year-3 2 0.8264 $75.00 $61.98 Year-4 3 0.7513 $50.00 $37.57 Present Value $140.46 Q-2 Nominal Rate (Annual) = 11.33463% Nominal Rate (day basis) (i) = 11.33463% x 1/365 = 0.03105% a) Amount in A/c on 1st October:Number of days amount is invested in account (t) = 274 Amount in the account on the date 1st Oct = Amount Invested at da y 0 x Future Value factor of.03105% for 274th day = $100 x 1.088786 = $108.88 (Approximately) b) Amount in account after 9 months:Number of days amount is invested in account (t) = 273 (January to September) Amount in account after 9 months = Amount Invested at day 0 x Future Value factor of.03105% for 273rd day = $100 x 1.088449 = $108.8449 or $108.85 Q-3 (using hit and trial method) a) If Bond Sells at $887.00 Let YTM be 11%, At YTM, net present value of cash inflows is equal to issue price Net present value = -$887.00 + (90 x 5.91113* + 1000 x 0.355#) = -$887 + $530.03 + $352.18 = ($4.78) Now Let YTM be 10% Net present value = -$887.00 + (90 x 6.14457* + 1000 x 0.38554#) = -$887 + $553.01 + $385.54 = $51.55 Now through interpolating between 11% & 10% YTM = 10% + 1%{51.55/(51.55-(-4.78))} = 10% + 1% (51.55/56.33) = 10% + 0.915143 = 10.91514% (Approx.) b) If Bond Sells at $1,134.20 Let YTM be 8% Net present value = -$1,134.20 + (90 x 6.71008* + 1000 x 0.46319#) = -$1,134.20 + $463.19 + $603.19 = ($67.10) Now Let YTM be 7% Net present value = -$1,134.20 + (90 x 7.02358* + 1000 x 0.50835#) = -$1,134.20 + $508.35 + $632.12 = $6.27 Now through interpolating between 7% & 8% YTM = 7% + 1%{6.27/(6.27-(-67.10))} = 7% + 1% (6.27/73.37) = 7.08546% (Approx.) From the above analysis it can be seen that in case of bond issue d at discount has a Yield higher than the coupon rate and in case of premium bond Yield is lesser than the coupon. (* denotes cumulative present value factor for 10 years & # denotes present value factor for 10 years Q-4 a) If Bond Sells at $887.00 Capital Gain yield = 1000/887 - 1 = 12.74% Current Yield = $90/$887 x 100 = 10.15% Total Return = Income Return + Capital Gain Return = $90*10 + 1000-887 = $1,013 b) If Bond Sells at $1,134.20 Capital Gain yield = 1000/1134.20 - 1 = (11.83%) Current Yield = $90/$1134.20 x 100 = 7.94% Total Return = Income Return + Capital Gain Return = $90*10 + 1000-1134.20 = $765.80 \fQ-1 Particulars Year Year-1 Year-2 Year-3 Year-4 Total Present value 0 1 2 3 Present Value factor of 10% 1.0000 0.9090 0.8264 0.7513 Amount Present Value ($50.00) $100.00 $75.00 $50.00 ($50.00) $90.91 $61.98 $37.57 $140.46 Q-2 Nominal Rate (Annual) = 11.33463% Nominal Rate (day basis) (i) = 11.33463% x 1/365 = 0.03105% a) Amount in A/c on 1st October:Number of days amount is invested in account (t) = 274 Amount in the account on the date 1st Oct = Amount Invested at day 0 x Future Value factor of 0.03105% for 274th day = $100 x 1.088786 = $108.88 (Approximately) b) Amount in account after 9 months:Number of days amount is invested in account (t) = 273 (January to September) Amount in account after 9 months = Amount Invested at day 0 x Future Value factor of 0.03105% for 273rd day = $100 x 1.088449 = $108.8449 or $108.85 Q-3 (using hit and trial method) a) If Issued at $887.00 Let YTM be 11%, At YTM, NPV of cash inflows is equal to issue price NPV = ($887) + (90 x 5.91113* + 1000 x 0.355 #) = -$887 + $530.03 + $352.18 = ($4.78) Now Let YTM be 10% NPV = ($887) + (90 x 6.14457* + 1000 x 0.38554 #) = -$887 + $553.01 + $385.54 = $51.55 Now through interpolating between 11% & 10% YTM = 10% + 1%{51.55/(51.55-(-4.78))} = 10% + 1% (51.55/56.33) = 10% + 0.915143 = 10.91514% (Approx.) b) If Issued at $1,134.20 Let YTM be 8% NPV = -$1,134.20 + (90 x 6.71008* + 1000 x 0.46319 #) = -$1,134.20 + $463.19 + $603.19 = ($67.10) Now Let YTM be 7% NPV = -$1,134.20 + (90 x 7.02358* + 1000 x 0.50835 #) = -$1,134.20 + $508.35 + $632.12 = $6.27 Now through interpolating between 7% & 8% YTM = 7% + 1%{6.27/(6.27-(-67.10))} = 7% + 1% (6.27/73.37) = 7.08546% (Approx.) From the above analysis it can be seen that in case of bond issued at discount has a Yield higher than the coupon rate and in case of premium bond Yield is lesser than the coupon rate. (* denotes cumulative present value factor for 10 years & # denotes present value factor for 10 years) Q-4 a) If Issued at $887.00 Capital Gain yield = 1000/887 - 1 = 12.74% Curr. Yield = $90/$887 x 100 = 10.15% Total Return on bond = Income Return + Capital Gain Return = $90*10 + 1000-887 = $1,013 b) If Issued at $1,134.20 Capital Gain yield = 1000/1134.20 - 1 = (11.83%) Curr. Yield = $90/$1134.20 x 100 = 7.94% Total Return on bond = Income Return + Capital Gain Return = $90*10 + 1000-1134.20 = $765.80 Q-1 Particulars Year Present Value factor of 10% Amount Present Value Cash Flow 0 1 ($50.00) ($50.00) Cash Flow 1 0.909090909 $100.00 $90.91 Cash Flow 2 0.826446281 $75.00 $61.98 Cash Flow 3 0.751314801 $50.00 $37.57 Total Present Value $140.46 Q-2 Nominal Rate (Annual) = 11.33463% Nominal Rate (Daily) (i) = 11.33463% x 1/365 = 0.03105% Amount in account on 1st October :No of days amount invested (t) = 274 Amount in account on 1 st Oct = Amount Invested at day 0 x Future Value factor of.03105% for 274 th day = $100 x 1.088786 = $108.8786 or $108.88 Amount in account after 9 months:No of days of amount invested (t) = 273 (January to September) Amount in account after 9 months = Amount Invested at day 0 x Future Value factor of.03105% for 273rd day = $100 x 1.088449 = $108.8449 or $108.85 Q-3 (using hit and trial method) If Bond Sells at $887.00 Let YTM be 11%, At YTM, net present value of cash inflows is equal to issue price Net present value = -$887.00 + (90 x 5.91113* + 1000 x 0.355#) = -$887 + $530.03 + $35 2.18 = ($4.78) Now Let YTM be 10% Net present value = -$887.00 + (90 x 6.14457* + 1000 x 0.38554#) = -$887 + $553.01 + $3 85.54 = $51.55 Now we will interpolate between 11% & 10% YTM = 10% + 1%{51.55/(51.55-(-4.78))} = 10% + 1% (51.55/56.33) = 10% + 0.915143 = 10.91514% (Approx.) If Bond Sells at $1,134.20 Let YTM be 8% Net present value = -$1,134.20 + (90 x 6.71008* + 1000 x 0.46319#) = -$1,134.20 + $463.19 + $603.19 = ($67.10) Now Let YTM be 7% Net present value = -$1,134.20 + (90 x 7.02358* + 1000 x 0.50835#) = -$1,134.20 + $508.35 + $632.12 = $6.27 Now we will interpolate between 7% & 8 % YTM = 7% + 1%{6.27/(6.27-(-67.10))} = 7% + 1% (6.27/73.37) = 7.08546% (Approx.) From the above analysis it can be seen that in case of bond issue d at discount has a Yield higher th an the coupon rate and in case of premium bond Yield is lesser than the coupon. (* denotes cumulative present value factor for 10 years & # denotes present value factor for 10 years Q-4 If Bond Sells at $887.00 Capital Gain yield = 1000/887 - 1 = 12.74% Current Yield = $90/$887 x 100 = 10.15% Total Return = Income Return + Capital Gain Return = $90*10 + 1000-887 = $1,013 Q-1 Particulars Year Year-1 Year-2 Year-3 Year-4 Present Value 0 1 2 3 Present Value factor of 10% 1.0000 0.9090 0.8264 0.7513 Amount Present Value ($50.00) $100.00 $75.00 $50.00 ($50.00) $90.91 $61.98 $37.57 $140.46 Q-2 Nominal Rate (Annual) = 11.33463% Nominal Rate (day basis) (i) = 11.33463% x 1/365 = 0.03105% a) Amount in A/c on 1st October:Number of days amount is invested in account (t) = 274 Amount in the account on the date 1st Oct = Amount Invested at day 0 x Future Value factor of 0.03105% for 274th day = $100 x 1.088786 = $108.88 (Approximately) b) Amount in account after 9 months:Number of days amount is invested in account (t) = 273 (January to September) Amount in account after 9 months = Amount Invested at day 0 x Future Value factor of 0.03105% for 273rd day = $100 x 1.088449 = $108.8449 or $108.85 Q-3 (using hit and trial method) a) If Bond Sells at $887.00 Let YTM be 11%, At YTM, net present value of cash inflows is equal to issue price Net present value = -$887.00 + (90 x 5.91113* + 1000 x 0.355 #) = -$887 + $530.03 + $352.18 = ($4.78) Now Let YTM be 10% Net present value = -$887.00 + (90 x 6.14457* + 1000 x 0.38554 #) = -$887 + $553.01 + $385.54 = $51.55 Now through interpolating between 11% & 10% YTM = 10% + 1%{51.55/(51.55-(-4.78))} = 10% + 1% (51.55/56.33) = 10% + 0.915143 = 10.91514% (Approx.) b) If Bond Sells at $1,134.20 Let YTM be 8% Net present value = -$1,134.20 + (90 x 6.71008* + 1000 x 0.46319 #) = -$1,134.20 + $463.19 + $603.19 = ($67.10) Now Let YTM be 7% Net present value = -$1,134.20 + (90 x 7.02358* + 1000 x 0.50835 #) = -$1,134.20 + $508.35 + $632.12 = $6.27 Now through interpolating between 7% & 8% YTM = 7% + 1%{6.27/(6.27-(-67.10))} = 7% + 1% (6.27/73.37) = 7.08546% (Approx.) From the above analysis it can be seen that in case of bond issued at discount has a Yield higher than the coupon rate and in case of premium bond Yield is lesser than the coupon rate. (* denotes cumulative present value factor for 10 years & # denotes present value factor for 10 years) Q-4 a) If Bond Sells at $887.00 Capital Gain yield = 1000/887 - 1 = 12.74% Current Yield = $90/$887 x 100 = 10.15% Total Return = Income Return + Capital Gain Return = $90*10 + 1000-887 = $1,013 b) If Bond Sells at $1,134.20 Capital Gain yield = 1000/1134.20 - 1 = (11.83%) Current Yield = $90/$1134.20 x 100 = 7.94% Total Return = Income Return + Capital Gain Return = $90*10 + 1000-1134.20 = $765.80 The following 104 documents likely make use of the text that you entered: Bond valuation ...b If Bond Sells at $1...a If Bond Sells at $887...b If Bond Sells at $1...a If Bond Sells at $887...Current Yield = $90 $887 x 100 = 10...b If Bond Sells at $1...a If Bond Sells at $887...Current Yield = $90 $887 x 100 = 10...a If Bond Sells at $887...Current Yield = $90 $887 x 100 = 10...b If Bond Sells at $1... Url: http://en.wikipedia.org/wiki/Bond_valuation Rank:28% Current yield ...b If Bond Sells at $1...a If Bond Sells at $887...b If Bond Sells at $1...a If Bond Sells at $887...Current Yield = $90 $887 x 100 = 10...b If Bond Sells at $1...a If Bond Sells at $887...Current Yield = $90 $887 x 100 = 10...a If Bond Sells at $887...Current Yield = $90 $887 x 100 = 10...b If Bond Sells at $1... Url: http://en.wikipedia.org/wiki/Current_yield Rank:28% Wikipedia:Reference desk/Archives/Humanities/2010 October 11 ...b If Bond Sells at $1...a If Bond Sells at $887...b If Bond Sells at $1...a If Bond Sells at $887...b If Bond Sells at $1... Url:http://en.wikipedia.org/wiki/Wikipedia:Reference_desk/Archives/Humani ties/2010_October_11 Rank:14% 1990 in Australia ...b If Bond Sells at $1...a If Bond Sells at $887...b If Bond Sells at $1...a If Bond Sells at $887...b If Bond Sells at $1... Url: http://en.wikipedia.org/wiki/1990_in_Australia Rank:14% Penalized present value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Penalized_present_value Rank:10% Present value of new business premiums ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Present_value_of_new_business_premiums Rank:10% Profitability index ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Profitability_index Rank:9% Wikipedia:WikiProject Spam/LinkReports/financet.org ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Wikipedia:WikiProject_Spam/LinkReports/fi nancet.org Rank:9% Actuarial present value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Actuarial_present_value Rank:9% Beckstrom's law ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Beckstrom's_law Rank:8% Discounted maximum loss ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Discounted_maximum_loss Rank:8% Accretion (finance) ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Accretion_(finance) Rank:8% Value-in-use ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Value-in-use Rank:8% Net present value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Net_present_value Rank:8% Optimal rotation age ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Optimal_rotation_age Rank:8% Tax amortization benefit ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Tax_amortization_benefit Rank:8% Present value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Present_value Rank:8% Time value of money ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Time_value_of_money Rank:8% Hattendorf's theorem ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Hattendorf's_theorem Rank:8% Discounted cash flow ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Discounted_cash_flow Rank:7% Discount rate ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Discount_rate Rank:7% Perpetuity ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Perpetuity Rank:7% Loan life coverage ratio ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Loan_life_coverage_ratio Rank:7% Mortgage yield ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Mortgage_yield Rank:7% PVIFA ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/PVIFA Rank:7% RNPV ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/RNPV Rank:7% Capitalization (disambiguation) ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Capitalization_(disambiguation) Rank:7% Market value added ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Market_value_added Rank:7% 4294967295 ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/4294967295 Rank:7% Principles of Corporate Finance ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Principles_of_Corporate_Finance Rank:7% Mortgage Assumption Value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Mortgage_Assumption_Value Rank:7% Wikipedia:Reference desk/Archives/Mathematics/2009 April 30 ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url:http://en.wikipedia.org/wiki/Wikipedia:Reference_desk/Archives/Mathe matics/2009_April_30 Rank:7% Actuarial notation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Actuarial_notation Rank:7% Asset retirement obligation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Asset_retirement_obligation Rank:7% Actuarial reserves ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Actuarial_reserves Rank:7% Annuity ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Annuity Rank:7% Modified internal rate of return ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Modified_internal_rate_of_return Rank:7% Valor actualizado penalizado ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://es.wikipedia.org/wiki/Valor_actualizado_penalizado Rank:7% Fisher separation theorem ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Fisher_separation_theorem Rank:7% Intrinsic value (finance) ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Intrinsic_value_(finance) Rank:7% File:CBO - Effect of Policy options on Social Security.png ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/File:CBO__Effect_of_Policy_options_on_Social_Security.png Rank:7% Module:Infobox/Fort romain ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://fr.wikipedia.org/wiki/Module:Infobox/Fort_romain Rank:7% Entity-Methode ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://ge.wikipedia.org/wiki/Entity-Methode Rank:7% Accumulation function ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Accumulation_function Rank:7% Zillmerisation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Zillmerisation Rank:7% CLV ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/CLV Rank:7% Agrarian Bonds in Peru ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Agrarian_Bonds_in_Peru Rank:6% Fiscal gap ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Fiscal_gap Rank:6% Minimum acceptable rate of return ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Minimum_acceptable_rate_of_return Rank:6% Account (accountancy) ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Account_(accountancy) Rank:6% Betafaktor ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://ge.wikipedia.org/wiki/Betafaktor Rank:6% Single-stock futures ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Single-stock_futures Rank:6% Dividend discount model ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Dividend_discount_model Rank:6% Discounting ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Discounting Rank:6% Royalty rate assessment ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Royalty_rate_assessment Rank:6% Geometric series ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Geometric_series Rank:6% Project finance model ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Project_finance_model Rank:6% Bond convexity ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Bond_convexity Rank:6% Bond duration ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Bond_duration Rank:6% Land and Buildings Transaction Tax ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Land_and_Buildings_Transaction_Tax Rank:6% APV-Ansatz ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://ge.wikipedia.org/wiki/APV-Ansatz Rank:6% Finance lease ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Finance_lease Rank:6% Box spread ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Box_spread Rank:6% Customer lifetime value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Customer_lifetime_value Rank:6% Swap (finance) ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Swap_(finance) Rank:6% Discounted utility ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Discounted_utility Rank:6% Black's approximation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Black's_approximation Rank:6% EV ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/EV Rank:6% Fisher equation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Fisher_equation Rank:6% Till v. SCS Credit Corp. ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Till_v._SCS_Credit_Corp. Rank:6% Wikipedia:Reference desk/Archives/Mathematics/2008 September 23 ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url:http://en.wikipedia.org/wiki/Wikipedia:Reference_desk/Archives/Mathe matics/2008_September_23 Rank:6% Michigan Mile And One-Eighth Handicap ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Michigan_Mile_And_One-Eighth_Handicap Rank:6% Service release premium ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Service_release_premium Rank:6% PV ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://ge.wikipedia.org/wiki/PV Rank:6% Rentenbarwertfaktor ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://ge.wikipedia.org/wiki/Rentenbarwertfaktor Rank:6% Template:Cite OED/doc ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Template:Cite_OED/doc Rank:6% Faustmann's formula ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Faustmann's_formula Rank:6% United States v. Drescher ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/United_States_v._Drescher Rank:6% Earnings before interest, taxes, and depreciation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Earnings_before_interest,_taxes,_and_depr eciation Rank:6% Net premium valuation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Net_premium_valuation Rank:6% Annual premium equivalent ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Annual_premium_equivalent Rank:6% Brand valuation ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Brand_valuation Rank:6% Pasteur point ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Pasteur_point Rank:6% Separation theorem ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Separation_theorem Rank:6% Wikipedia:Reference desk archive/Mathematics/2006 July 13 ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url:http://en.wikipedia.org/wiki/Wikipedia:Reference_desk_archive/Mathem atics/2006_July_13 Rank:6% Equivalent annual cost ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Equivalent_annual_cost Rank:6% Rozalex ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Rozalex Rank:6% Stumpage ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Stumpage Rank:6% Future value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Future_value Rank:6% Capital budgeting ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Capital_budgeting Rank:6% Terminal value (finance) ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Terminal_value_(finance) Rank:6% Amortization schedule ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Amortization_schedule Rank:6% Internal rate of return ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Internal_rate_of_return Rank:6% Benefit-cost ratio ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Benefit-cost_ratio Rank:6% Constant maturity credit default swap ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Constant_maturity_credit_default_swap Rank:6% Accretion expense ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Accretion_expense Rank:6% Intertemporal budget constraint ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Intertemporal_budget_constraint Rank:6% Tax shield ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Tax_shield Rank:6% Life-cycle cost analysis ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Life-cycle_cost_analysis Rank:6% Marginal efficiency of capital ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Marginal_efficiency_of_capital Rank:6% Embedded value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Embedded_value Rank:6% Outline of actuarial science ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Outline_of_actuarial_science Rank:6% Appraisal value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Appraisal_value Rank:6% Adjusted present value ...Net present value = $887...Net present value = $1...Net present value = $887...Net present value = $1... Url: http://en.wikipedia.org/wiki/Adjusted_present_value Rank:6% Detailed Search Report Found Queries: 11/37 Found Documents: 104 Rank: 29% Q-1 Particulars Year Present Value factor of 10% Amount Present Value Year-1 0 1.0000 ($50.00) ($50.00) Year-2 1 0.9090 $100.00 $90.91 Year-3 2 0.8264 $75.00 $61.98 Year-4 3 0.7513 $50.00 $37.57 Present Value $140.46 Q-2 Nominal Rate (Annual) = 11.33463% Nominal Rate (day basis) (i) = 11.33463% x 1/365 = 0.03105% a) Amount in A/c on 1st October:Number of days amount is invested in account (t) = 274 Amount in the account on the date 1st Oct = Amount Invested at da y 0 x Future Value factor of.03105% for 274th day = $100 x 1.088786 = $108.88 (Approximately) b) Amount in account after 9 months:Number of days amount is invested in account (t) = 273 (January to September) Amount in account after 9 months = Amount Invested at day 0 x Future Value factor of.03105% for 273rd day = $100 x 1.088449 = $108.8449 or $108.85 Q-3 (using hit and trial method) a) If Bond Sells at $887.00 Let YTM be 11%, At YTM, net present value of cash inflows is equal to issue price Net present value = -$887.00 + (90 x 5.91113* + 1000 x 0.355#) = -$887 + $530.03 + $352.18 = ($4.78) Now Let YTM be 10% Net present value = -$887.00 + (90 x 6.14457* + 1000 x 0.38554#) = -$887 + $553.01 + $385.54 = $51.55 Now through interpolating between 11% & 10% YTM = 10% + 1%{51.55/(51.55-(-4.78))} = 10% + 1% (51.55/56.33) = 10% + 0.915143 = 10.91514% (Approx.) b) If Bond Sells at $1,134.20 Let YTM be 8% Net present value = -$1,134.20 + (90 x 6.71008* + 1000 x 0.46319#) = -$1,134.20 + $463.19 + $603.19 = ($67.10) Now Let YTM be 7% Net present value = -$1,134.20 + (90 x 7.02358* + 1000 x 0.50835#) = -$1,134.20 + $508.35 + $632.12 = $6.27 Now through interpolating between 7% & 8% YTM = 7% + 1%{6.27/(6.27-(-67.10))} = 7% + 1% (6.27/73.37) = 7.08546% (Approx.) From the above analysis it can be seen that in case of bond issue d at discount has a Yield higher than the coupon rate and in case of premium bond Yield is lesser than the coupon. (* denotes cumulative present value factor for 10 years & # denotes present value factor for 10 years Q-4 a) If Bond Sells at $887.00 Capital Gain yield = 1000/887 - 1 = 12.74% Current Yield = $90/$887 x 100 = 10.15% Total Return = Income Return + Capital Gain Return = $90*10 + 1000-887 = $1,013 b) If Bond Sells at $1,134.20 Capital Gain yield = 1000/1134.20 - 1 = (11.83%) Current Yield = $90/$1134.20 x 100 = 7.94% Total Return = Income Return + Capital Gain Return = $90*10 + 1000-1134.20 = $765.80 \fQ-1 Particulars Year Year-1 Year-2 Year-3 Year-4 Total Present value 0 1 2 3 Present Value factor of 10% 1.0000 0.9090 0.8264 0.7513 Amount Present Value ($50.00) $100.00 $75.00 $50.00 ($50.00) $90.91 $61.98 $37.57 $140.46 Q-2 Nominal Rate (Annual) = 11.33463% Nominal Rate (day basis) (i) = 11.33463% x 1/365 = 0.03105% a) Amount in A/c on 1st October:Number of days amount is invested in account (t) = 274 Amount in the account on the date 1st Oct = Amount Invested at day 0 x Future Value factor of 0.03105% for 274th day = $100 x 1.088786 = $108.88 (Approximately) b) Amount in account after 9 months:Number of days amount is invested in account (t) = 273 (January to September) Amount in account after 9 months = Amount Invested at day 0 x Future Value factor of 0.03105% for 273rd day = $100 x 1.088449 = $108.8449 or $108.85 Q-3 (using hit and trial method) a) If Issued at $887.00 Let YTM be 11%, At YTM, NPV of cash inflows is equal to issue price NPV = ($887) + (90 x 5.91113* + 1000 x 0.355 #) = -$887 + $530.03 + $352.18 = ($4.78) Now Let YTM be 10% NPV = ($887) + (90 x 6.14457* + 1000 x 0.38554 #) = -$887 + $553.01 + $385.54 = $51.55 Now through interpolating between 11% & 10% YTM = 10% + 1%{51.55/(51.55-(-4.78))} = 10% + 1% (51.55/56.33) = 10% + 0.915143 = 10.91514% (Approx.) b) If Issued at $1,134.20 Let YTM be 8% NPV = -$1,134.20 + (90 x 6.71008* + 1000 x 0.46319 #) = -$1,134.20 + $463.19 + $603.19 = ($67.10) Now Let YTM be 7% NPV = -$1,134.20 + (90 x 7.02358* + 1000 x 0.50835 #) = -$1,134.20 + $508.35 + $632.12 = $6.27 Now through interpolating between 7% & 8% YTM = 7% + 1%{6.27/(6.27-(-67.10))} = 7% + 1% (6.27/73.37) = 7.08546% (Approx.) From the above analysis it can be seen that in case of bond issued at discount has a Yield higher than the coupon rate and in case of premium bond Yield is lesser than the coupon rate. (* denotes cumulative present value factor for 10 years & # denotes present value factor for 10 years) Q-4 a) If Issued at $887.00 Capital Gain yield = 1000/887 - 1 = 12.74% Curr. Yield = $90/$887 x 100 = 10.15% Total Return on bond = Income Return + Capital Gain Return = $90*10 + 1000-887 = $1,013 b) If Issued at $1,134.20 Capital Gain yield = 1000/1134.20 - 1 = (11.83%) Curr. Yield = $90/$1134.20 x 100 = 7.94% Total Return on bond = Income Return + Capital Gain Return = $90*10 + 1000-1134.20 = $765.80