Solution-How much interest will be paid annually on these

How much interest will be paid annually on these bonds

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Reference no: EM132979432

Question 1 - Calculate the present value for the following: (use the appropriate values from the tables provided. Round your PV factor to 4 decimal places and the final answers to the nearest whole dollar)

a) A car down payment of $20.000 that will be required in eight years, assuming an interest rate of 14%.

b) A lottery prize of $6million to be paid at the rate of $300.000 per year for 20 years, assuming an interest rate of 4%.

c) The same annual amount as in part B, but assuming an interest rate of 6%.

d) A financial lease obligation that calls for the payment of $8.000 per year for 10 years, assuming a discount rate of 8%.

Question 2 - On July1, 2019, 9.0 million face amount of 8%, 12-year bond were issued. The bonds pay interest on an annual basis on June 30 each year. The market interest rates were slightly higher than 8% when the bonds were sold. How much interest will be paid annually on these bonds?

Reference no: EM132979432

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How much interest will be paid annually on these bonds

Reference no: EM132979432

Reference no: EM132979432

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