Questions 13-16

Verizon LTE Back AECN 452 Ho... 9:23 PM 10. (6 points) How does your answer change if you want to leave $1m to an beir? 11. (10 points) When you graduate, you plan to treat yourself by buying a new track Assuming the truck you want costs $52,000 and you have $1,000 to use as a down payment, what are your monthly payments assuming 19% interest compounded monthly or 7 years? If these payments are $100 too much for your badget, how mach extra do you have pat down (or alternatively, how much harder do you have to negotiate with the dealer)? 12, (6 paints) If your discount rate is 6%, how much is a 10-year bad offring a 6% coupon per $1,000 face value) paid semi-annually worth? 13, (4 points) If your discount rate is 4%, how much is the bond worth now? 14. (8 points) If you pay $864.10 for the boad as described, what yield can you anticipate? 15. (6 points) Suppose that 3 years after purchasing the bond, you need money and decide to sell it. That is, you'd like to sell the remaining 14 coupon payments and face value. What is a fair price if a potential buyer has a discont rate of 7.5%? 16. (8 points) If the potential buyer only offers you $830, what yield is be anticipating? Dashboard Calendar To Do Notifications Inbox