Present value interest factor for such stream of cash flows

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1. You place $800 in a savings account at 6% compounded annually. What is your account balance at the end of 3 years?

2. How can the present value interest factor for such a stream of cash flows be determined?

3. ZZ Company Ltd. wants to issue 20-year, $1,000 face value zero-coupon bonds. If each bond is to yield 7%, what is the minimum number of bonds ZZ Co. must sell if they wish to raise $5 million from the sale? (Ignore issuance costs.)

Reference no: EM131997928

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