Please help solve these 3 ?'s. Thanks!
Treasury securities are issued and backed by the U.S. government and therefore, are considered to be the lowest-risk securities on the market. As an investor looking for protection against inflation, you are considering the purchase of inflation-adjusted bonds known as U.S. Treasury Inflation Protected Securities (TIPS). With these securities, the face value (which is paid at maturity) is regularly adjusted to account for inflation; however, the semiannual interest payment (called the bond dividend) remains the same. You purchased a 10-year $10,000 TIPS bond with dividend of 4% per year payable semiannually (e., $200 every 6 months). Assume there is no inflation adjustment for the first 5 years, but in years 6 through 10, the bond face value increases by $1250 each year. You use an expected investment return of 15% per year compounded semiannually. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. What will be the equivalent future worth of the total money received with dividend reinvestment included? The future worth of all the income received would be $ Metalfab Pump and Filter expects the cost of steel bodies for 6-inch valves to increase by $1.5 every 3 months. If the cost for the first quarter is expected to be $80, what is the present worth of the costs for a 3-year time period at an MARR of 7% per year compounded quarterly? The present worth is $ 163 The cost to manufacture a firing system component used in a rapid deployment missile defense system was $40,000 the first year: however, the company expects the cost to increase by 2% each year. Calculate the present worth of this cost over a 5-year period at an interest rate of 10% per year compounded quarterly. The present worth of the cost is $ 65,160 Treasury securities are issued and backed by the U.S. government and therefore, are considered to be the lowest-risk securities on the market. As an investor looking for protection against inflation, you are considering the purchase of inflation-adjusted bonds known as U.S. Treasury Inflation Protected Securities (TIPS). With these securities, the face value (which is paid at maturity) is regularly adjusted to account for inflation; however, the semiannual interest payment (called the bond dividend) remains the same. You purchased a 10-year $10,000 TIPS bond with dividend of 4% per year payable semiannually (e., $200 every 6 months). Assume there is no inflation adjustment for the first 5 years, but in years 6 through 10, the bond face value increases by $1250 each year. You use an expected investment return of 15% per year compounded semiannually. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. What will be the equivalent future worth of the total money received with dividend reinvestment included? The future worth of all the income received would be $ Metalfab Pump and Filter expects the cost of steel bodies for 6-inch valves to increase by $1.5 every 3 months. If the cost for the first quarter is expected to be $80, what is the present worth of the costs for a 3-year time period at an MARR of 7% per year compounded quarterly? The present worth is $ 163 The cost to manufacture a firing system component used in a rapid deployment missile defense system was $40,000 the first year: however, the company expects the cost to increase by 2% each year. Calculate the present worth of this cost over a 5-year period at an interest rate of 10% per year compounded quarterly. The present worth of the cost is $ 65,160
