Calculate the cost of trade credit when payment is made

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Reference no: EM131930218

1. Bunco Game Finanacial Planner, Inc. promises to triple your money inn 8 years. What rate of return (yield) are they promising?

2. The present value of $500 to be recevied each year for seven years with the first payment to occur in exactly five years at a discount rate of 8 percent is?

3. The present value of $500 to be received a the beginning of each year for seven years at a discount rate of 8 percent is?

4. Trade credit terms of 2/10, net 90 are avaiable. Calculate the cost of trade credit when the payment is made on the net due date using the EAR( also known as APY). Use a 360 day year.

5. A corporate bond with a $1,000 denomination and bearing a 10 percent coupon rate will mature in 10 years. The firm’s beta is 1.2. If current market rate of return is 8 percent for bonds of this nature, what is current theoretical value of the bond (assume annual interest payments)?

Reference no: EM131930218

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