Assume the appropriate discount rate

Assignment Help Financial Management

Reference no: EM131300093

An investment will pay you $87,000 in five years. Assume the appropriate discount rate is 7.75 percent compounded daily.

What is the present value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Use 365 days in a year.)

Reference no: EM131300093

Questions Cloud

What is the current bond price : Lycan, Inc., has 8.4 percent coupon bonds on the market that have 6 years left to maturity. The bonds make annual payments and have a par value of $1,000. If the YTM on these bonds is 10.4 percent, what is the current bond price?

What is the current dollar price : Harrison Co. issued 13-year bonds one year ago at a coupon rate of 8 percent. The bonds make semiannual payments. If the YTM on these bonds is 5.7 percent, what is the current dollar price assuming a $1,000 par value?

What rate of return will you earn over the last ten years : With a Series EE bond, you pay a particular amount today of, say, $25, and the bond accrues interest over the time you hold it. In early 2012, the U.S. In 2022, instead of cashing the bond in for its then current value, you decide to hold the bond un..

What percentage of the payment represents interest : Set up and amortization for a $25,000 loan to be repaid in equal installments at the end of the next 3 years. The interest rate is 10% compounded annually. What percentage of the payment represents interest and what percentage represents principal fo..

Assume the appropriate discount rate : An investment will pay you $87,000 in five years. Assume the appropriate discount rate is 7.75 percent compounded daily. What is the present value?

Annual deposits into a retirement account : You make $9,900 annual deposits into a retirement account that pays an APR of 9.7 percent compounded monthly. How large will your account balance be in 32 years?

How much interest in total does he pay on credit card debt : Simon recently received a credit card with an 18% nominal interest rate. With the card, he purchased an iPad for $350. The minimum payment on the card is only $10 per month. How much interest in total does he pay on his credit card debt?

The presence of taxes and bankruptcy costs : RFC Corp. has announced $1 dividend. If RFC's price last price cum-dividend is $50, what should its first ex-dividend price be (assuming perfect capital markets)? Why? Does your answer change in imperfect markets i.e. in the presence of taxes and ban..

What nominal rate will you charge your customers : As a jewelry store manager, you want to offer credit sales to your customers, with interest on outstanding balances paid monthly. However, to finance your working capital, you must borrow funds from your bank at a nominal 6%, monthly compounding. For..

User Account

All Pages