Find the yield rate minglu earned on her investment

Assignment Help Financial Management

Reference no: EM13881901

Stephen borrows $1000 at 5% for 20 years from Minglu. After 10 years, Minglu sells the rights to future payments to Aipeng for $P.

a) Find P, if Aipeng plans to accumulate a sinking fund at 4% to replace P and desires a yield of 6%.

b) Find the yield rate Minglu earned on her investment.

Reference no: EM13881901

Questions Cloud

What are some of key impacts of the industrial revolution : What are some of the key impacts of the Industrial Revolution? You may discuss not only ones which came about within the time-span attributed to the Industrial Revolution, but also those which stretched long past the end of that particular historical..

What are your put options worth and whats your net profit : Suppose you purchase five put contracts on Test burger Co. The strike price is $45, and the premium is $3. If, at expiration, the stock is selling for $39 per share, what are your put options worth? What's your net profit?

Find the breakeven point : Find the Breakeven point (NPV=O) using the following information....

Wet corp has investment project that will reduce expenses : The wet corp has an investment project that will reduce expenses by $25,000 per year for three years. The project's cost is $55,000. If the asset is part of the three-year MACRS category (33% first year depreciation) and the company's tax rate is 34%..

Find the yield rate minglu earned on her investment : Stephen borrows $1000 at 5% for 20 years from Minglu. After 10 years, Minglu sells the rights to future payments to Aipeng for $P. Find P, if Aipeng plans to accumulate a sinking fund at 4% to replace P and desires a yield of 6%. Find the yield rate ..

What are the benefits of such restrictions : In foreign countries it is quite common for banks to own nonfinancial companies and vice versa. Do the U.S. laws restricting banking and commerce because U.S. banks to be at a competitive disadvantage internationally? What are the benefits of such re..

Current dividend yield-required rate of return on stock : The current dividend yield on CJ’s common stock is 1.89 percent. The company just paid a $1.23 annual dividend and announced plans to pay $1.27 next year. The dividend growth rate is expected to remain constant at the current level. What is the requi..

Annual dividend on its common stock : Southern Markets recently paid a $2.80 annual dividend on its common stock. This dividend increases at an average rate of 3.8 percent per year. The stock is currently selling for $26.91 a share. What is the market rate of return?

Calculate weighted average cost of capital for stone corp : Given an optimal capital structure that is 50% debt and 50% common stock, calculate the weighted average cost of capital for stone corp.

User Account

All Pages