Question
Question 1 (1 point) A $5000 bond that pays 6% semi-annually is redeemable at par in 14 years. Calculate the purchase price if it is
Question 1 (1 point) A $5000 bond that pays 6% semi-annually is redeemable at par in 14 years. Calculate the purchase price if it is sold to yield 8% compounded semi-annually
Question 4 (1 point) Waterton Motel made semi-annual payments into a sinking fund for 11 years. If the fund had a balance of $100 000.00 after 11 years and interest is 5.4% compounded semi-annually, what was the accumulated balance in the fund after seven years?
You win a lottery and have a choice of taking $200 000.00 immediately or taking payments of $8000.00 at the end of every three months for ten years. Which offer is preferable if interest is compounded at 8% compounded quarterly? Question 5 options: A) The annual quarterly payments of $8000.00 B) The $200 000.00 immediately C) Neither A or B D) Either A or B since they are equal E) None of the above
Question 6 (1 point) An obligation can be settled by making a payment of $7500.00 now and a final payment of $10 000.00 in five years. Alternatively the obligation can be settled by payments of $750.00 at the end of every three months for five years. If interest rate is 10% compounded quarterly, determine the preferred alternative. Question 6 options: A) Alternative #1 B) Alternative #2 C) Neither Alternative D) Inconclusive based on the information provided
Sean and Jessica want to sell their interest in a small business. They have received two offers. If they accept Offer A they will receive $40 000 immediately and $30 000 in two years. If the accept Offer B they will receive $50000 now and $2000 at the end of every six months for 5 years. If interest is 8%, which offer is preferable? Question 7 options: A) Alternative #1 Alternative #2 B) C) Neither A or B D) Either A or B since they are equal E) None of the above
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