Determine the present value of the debt

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Q1) From 1969 to 2083, the earnings per share of common stock of a company increased from $6.8 to $23.6. What was (within one basis point) the compound annual rate of increase in earnings per share? (Indicate your answer as a percentage without the % symbol; for instance, if your answer is 10%/year, then simply write 10.)

Q2) Using the exact method, how much money will be required on July 6, 2016, to repay a loan of $5000 made on September 6, 2007, if interest on the loan is earned at 8.5%/year compounded quarterly?

Q3) A debt of $10,000 is carrying interest at 9.8%/year compounded semi-annually and is due in 22 years. The market interest rates on such a debt are currently of 9.3%/year compounded monthly. Determine the present value of the debt.

Reference no: EM132956223

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