You have opened a savings account that pays a 13 annual rate and put in $2,500 How much will you have in 11 years In five years, you need to pay $50,000 for the education You have $35,000 on your savings account now How much should be an interest rate so that you accumulate the needed amount in five years You identify an investment project with the following cash flows If the discount rate is 10 , what is the present value of these cash flows Y1 $500 Y2 $550 Y3 $800 Y4 $450 You received three offers from the local banks Bank A charges 9 compounded quarterly Bank B charges 8 8 compounded monthly Bank C charges 9 5 compounded semi annually Which bank would you prefer if you need to borrow money You have just leased a car with monthly payments of $395 for the next 60 months, with the first payment due today If the APR is 7 56 compounded monthly, what is the value of the payments today Golden Smith Co issued 15 year bonds three years ago at a coupon rate of 5 3 percent The bonds make semiannual payments and have a par value of $1,000 What is the current bond price if the YTM on these bonds is 6 75 percent You find a zero coupon bond with a par value of $10,000 and 5 years to maturity If YTM is 5 5 , how much will you pay for this bond Assume semiannual compounding periods JP Co wants to issue new 10 year semiannual bonds for much needed expansion projects The company currently has 3 5 coupon bonds that sell for $920 95 (with a par value of $1,000), make semiannual payments, and mature in 8 years What coupon rate should the company set on its new bonds to sell them at par You have in your savings account $5,500 today and plan to contribute there $150 at the end of each month If your account pays you 4 5 annual interest compounded monthly, how much will you have after ten years please explain each step

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Posted on Sep 08, 2024

You have opened a savings account that pays a 13% annual rate and put in $2,500. How much will you have in 11 years?

In five years, you need to pay $50,000 for the education. You have $35,000 on your savings account now. How much should be an interest rate so that you accumulate the needed amount in five years?

You identify an investment project with the following cash flows. If the discount rate is 10%, what is the present value of these cash flows?

Y1- $500

Y2- $550

Y3- $800

Y4- $450

Bank A charges 9% compounded quarterly.

Bank B charges 8.8% compounded monthly.

Bank C charges 9.5% compounded semi-annually.

Which bank would you prefer if you need to borrow money?

You have just leased a car with monthly payments of $395 for the next 60 months, with the first payment due today. If the APR is 7.56% compounded monthly, what is the value of the payments today?

Golden Smith Co. issued 15-year bonds three years ago at a coupon rate of 5.3 percent. The bonds make semiannual payments and have a par value of $1,000. What is the current bond price if the YTM on these bonds is 6.75 percent?

You find a zero-coupon bond with a par value of $10,000 and 5 years to maturity. If YTM is 5.5%, how much will you pay for this bond? Assume semiannual compounding periods.

JP Co. wants to issue new 10-year semiannual bonds for much-needed expansion projects. The company currently has 3.5% coupon bonds that sell for $920.95 (with a par value of $1,000), make semiannual payments, and mature in 8 years. What coupon rate should the company set on its new bonds to sell them at par?

You have in your savings account $5,500 today and plan to contribute there $150 at the end of each month. If your account pays you 4.5% annual interest compounded monthly, how much will you have after ten years?

please explain each step