I need somebody to help answer these questions and break down the answers for FIN3400

1. A) How do you attain the value of a bond (theory)? B) Use a 10 percent, 10 year bond that matures in 6 years with a market rate 4% to calculate its value today. C) Please calculate the bonds FV on the issue date. D) Describe the reasons or logic of what caused the bond to change in value.

1. What is the difference between an annuity and a lump sum?

1. Mr. Peters purchased a British -style perpetuity bond (a consort) in 1997 for $1000. The bond has a coupon rate of 7%.

A )What is the current value of the bond if the current market rate is 6%? Please show math.

B) What is the current value of the bond if the current market rate is 12%? Please show math.

1. Please calculate the present value (price) of a perpetuity: $1000 face value, issued in 1988, coupon rate 4.25 %, the current market rate 6.50%.

1. Explain the logic of why perpetuity bonds are issued.

1. A) How does the present value of a principal repayment effect the price of the bond as the bond matures? B) Use a 30 year bond with a 5% coupon that matures today as the example.

1. Tim will receive $1,500,000 from her parents as part of her inheritance in 2020. It can be traded today with his brother for cash at a discount of 10%.

A) How much can he receive today

B) What is the future value of the inheritance?

1. Juan Hernandez started placing $100,000 a year in a retirement fund 20 years ago. The annual return on his investment is 8%.

A) How much will he have today?

B) What is the future value of investment fund?

C) How much did Juan Hernandez actually invest in the retirement funds?

1. John was informed that he will receive his inheritance today: in a farm investment. The original investment was $10,000 and was guaranteed to grow at 7% per year. The investment was made 200 ago. How much is the investment worth today?

1. Susan will receive $15,000 in a divorce settlement as alimony for 20 years. She can trade it for a lump sum today at a discount rate of 9 percent from the attorney.

A) How much will she get?

B) what is the future value of the settlement?