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Need help with question 14 please! An asset promises to pay $50,000 in five years and $100,000 in ten years. What is its price if

image text in transcribedNeed help with question 14 please!
An asset promises to pay $50,000 in five years and $100,000 in ten years. What is its price if the 5 year rate of discount is 10% and the 10-year rate of discount is 5%? An asset promises to pay $1,000 in each of the next two years. a) What is its present value assuming the one-year rate of discount is 1.5% and the two-year is 2.2%? b) what is its present value assuming both discount rates are 1.85% An asset promises to pay $60 in each of the next three years. Assume the rate of discount is 5% for each of the years. a) Calculate its price the "long" way: i.e, just as you have been doing for #11 and #12, by discounting each future cash flow and summing. b) Calculate its price using the annuity formula. For the annuity in #12, what happens to it price if the rate of discount increase to 6%? For the annuity in #12, what happens to it price if: a) its maturity is raised to four years? b) it never matures (a "perpetuity')? what are the proceeds of $1,000,000 deposited in a bank today (Sept 9) for 1 month at 1.5%? Take care to apply "money market" rules and use the proper "day count". What is the present value of $1MM to be paid March 9 2018 at a (discount) rate of 2%, Same instructions as in 15.) An asset promises to pay the following: $60 each year for the next ten years: and $1,000 in ten years Assume all the cash flows are discounted by 6%. Use the annuity formula to get the price of the first part. Use the standard discounting formula to get the price of the second part. Add them together, and you have the price of a bond This is a bond with a coupon rate of 60/1,000 = 6% and a maturity of ten years. Its yield-to-maturity is 6%

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