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I need help on number 8 (a-e). 2. Timeline: What are you calculating if you move a cash flow from left to right on FV.2)
I need help on number 8 (a-e).
2. Timeline: What are you calculating if you move a cash flow from left to right on FV.2) What do you use in your calculation? (Compounding interest? Single inter Maturity? Or others?) What is annuity cash flows? What are the characteristics of the annuity? 4. What is annuity due? How to calculate present value and future value of an annuity aue. 5. What is perpetuity? What are the characteristics of perpetuity? 6. What are EAR and APR? What's the difference between them? 7. What is bond? What are the different kinds of bonds? Is U.S. Treasury's return the risk-free return? Why? 8. Bond's Characteristics: (Drawing a timeline for a bond will help you on all following questions) a. What is the face value of a bond? What are other names of face value? b. What is coupon payment? How to calculate the coupon payment of a bond? c. What is time to maturity? How to calculate the time to maturity of a bond? d. What is yield to maturity (YTM)? How to calculate yield to maturity? e. Typical cash flow of a bond (Single C.F.? Annuity? Or both?)Step by Step Solution
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