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Liverpool pic is a growing company which wishes to take out a loan of 300,000 from a local bank. It would like to repay the
Liverpool pic is a growing company which wishes to take out a loan of 300,000 from a local bank. It would like to repay the loan in 10 increasing annual instalments, each one paid at the end of the year. The bank charges an interest rate of 8%. As it is a growing company, it would like its payments to increase at a rate of 3% every year. How much would Liverpool pic need to pay to the bank at the end of the first year? O A. 38,173 OB. 37,876 OC. 39,734 OD. 36,361 Assume that there is a freshly-issued coupon-bearing bond with a face value of 10,000, which has four years to maturity and pays an annual coupon rate of 10%. The market prices of zero-coupon bonds with a face value of 100 and different years to maturity are shown below: Time-to-Maturity (in years) Market Price 97.56 E94.26 90.19 85.48 The market price of the coupon-bearing bond (rounded to two digits) should be equal to: O A 12.222.99 OB. 12,512.78 OC. 11,472.30 OD. E11,861.71
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