How much do the contest sponsors have to deposit

Assignment Help Financial Management

Reference no: EM132001817

The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 20 years.

If the prize money is guaranteed by AAA bonds yielding 6% and is placed into an escrow account when the contest is announced 1 year before the first payment, how much do the contest sponsors have to deposit in the escrow account? (Round your answer to the nearest cent.)

Reference no: EM132001817

Questions Cloud

Discovered species of monkeys in the south pacific : The task is testing the color-perception abilities of a newly discovered species of monkeys in the South Pacific. What are the steps?

Levels of the malts hierarchy of sexual interaction : What are the six levels of the Malts Hierarchy of Sexual interaction? How can it useful? How can parents teach adolescents do develop intimacy in relationships.

What is the nal of the lease : The company can issue bonds at an interest rate of 9 percent. The corporate tax rate is 30 percent.What is the NAL of the lease?

How does autonomy factor into kant moral theory : How does AUTONOMY factor into Kant's moral theory, and what role does it play in his ethical theory?

How much do the contest sponsors have to deposit : The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 20 years.

What is amount of interest expense sunland will show : What is amount of Interest expense sunland will show with relation to these bonds for the year ended December 31st 2017.

What is multicultural competence : What is multicultural competence? What are three things a person can do to increase his/her personal level of multicultural competence?

Explain the differences between stereotyping-prejudice : Explain the differences between stereotyping, prejudice, discrimination and institutional racism.

Calculate the approximate bond price change : Calculate the approximate bond price change for a 50-basis-point increase in the yield, based on the modified duration you calculated in part (a).

User Account

All Pages