Determine the effect on percentage yield

Assignment Help Finance Basics
Reference no: EM132500876

1) Mr Anderson, a pharmacist and the owner of a block of flats located at Twabidi, a first class residential area in Accra anticipates that he will need to provide a new stair case in 8 years' time at an estimated cost of ¢7,500,000. If capital can be invested at 9.52% per annum, what amount should be invested to meet the future liability?

2) A speculator purchased Barclays Bank Ghana Limited corporate bond for ¢500,000. The bond is expected to yield a coupon payment of ¢50,000 per annum for the next 25 years. At the end of this period, it will be necessary to buy a new bond at cost of ¢700,000 at the same coupon rate so that the speculator can still meet his expenditures. Assuming that the coupon rate is the same as the interest, how should the purchaser provide for this future expenditure and what will be the effect on his percentage yield?

Reference no: EM132500876

Questions Cloud

What is the cost to blossom in us dollars : What is the cost to Blossom in U.S. dollars? (Round answer to 2 decimal places, e.g. 15.25.)
What is the significance of the oaa : First, what is the Older American's Act (OAA)? What is the significance of the OAA? How are funds distributed? What kinds of services are offered? Who benefits?
What will be the number of shares that you hold : Suppose that you own 1,800 shares of Nocash Corp. and the company is about to pay a 25% stock dividend. The stock currently sells at $115 per share.
Find the firms market size variance for the period is : Find The firms market size variance for the period is. Total industry volume for both products X and Y was estimated to be 130,000 units at the time
Determine the effect on percentage yield : Assuming that the coupon rate is the same as the interest, how should the purchaser provide for this future expenditure
What is the project payback period of investment : An investment project provides cash inflows of $710 per year for 8 years.
Divided between dividends and capital gains : The expected pretax return on three stocks is divided between dividends and capital gains in the following way:
Describe the current problem or opportunity for change : Describe the current problem or opportunity for change. Include in this description the circumstances surrounding the need for change, the scope of the issue.
Determining the anticipated cash outflow : The company can earn 5 percent on these funds. How much must the company set aside each year for this purpose?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the total compensation of each pcp

Last year, Mountain's capitation payment to the PCPs was $20 PMPM, Calculate the total compensation of each PCP at the end of the year

  What would be the investment NPV

The company has an opportunity cost of 6%. Using this information, what would be the investment's NPV

  What types of leases are used by the PepsiCo Inc

Company Subject is: PepsiCo Inc - What types of leases are used by the company? What amount of capital leases was reported by the company in total

  Search the internet for an image from a used as part of an

search the internet for an image from a used as part of an advertisement or published with a written work. post a link

  What countries were the original homes for global retailers

Think of your top-five favorite retailers. Are they regional, national, or global companies? Could any of the regional or national companies have success.

  How you would use the integration features of ms office

Explain how you will visually represent the data for the total sales of the individual inventory categories for each location for the time periods shown.

  Accrues four liability items

Sanderson Metals Inc. accrues four liability items: payroll, employee vacation that has been earned but not used, property taxes, and inventory that arrives at its factory dock before an invoice is received from the vendor.

  What is the npv-kinky copies

Kinky Copies may buy a high-volume copier. The machine costs $160,000 and this cost can be fully depreciated immediately.

  Ski tries to match the maturity of its assets and

ski tries to match the maturity of its assets and liabilities. describe how ski could adopt a more aggressive or a

  What are two factors to be considered in time value of money

Explain the phrase "a dollar today is worth more than a dollar tomorrow." What are the two factors to be considered in the time value of money?

  Business management for a persuasive essay

What would be a good topic to cover in business management for a persuasive essay?

  Role of colonization-path to independence

Study the development process of Jamaica by addressing the main themes covered in the textbook: role of colonization/path to independence/nation formation; early development policies;

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd