Reference no: EM13883786
Present value, multiple payments, annual discounting:
I want to have $1,000,000 at the end of 1 year, $1,000,000 at the end of 2 years, and $1,000,000 at the end of 3 years. If the interest rate is 5.2%, I need to invest $ now to achieve these payouts.
(Note: Isn't this like having three accounts each with a 5.2% interest rate. How much do I need to put into the first account now so that it will have a $1,000,000 balance at the end of 1 year? How much do I need to put into the second account now so that it will have a $1,000,000 balance at the end of two years? Likewise, how much to I need to put into the third account now so that it will have a $1,000,000 balance at the end of 3 years? Can't we just add these initial sums together and put everything in one account with a 5.2% interest rate? That's the amount you need to invest now in order to have each of these time-specific balances.)
Given 2-yr treas bond yield, find price:
Suppose a $100,000 T bond has two years to maturity, a 5.52 % annual coupon rate, semiannual coupons, and a yield of 5.62%. Its price is $.
This price is quoted in points and 32nds as-.
Given 3 yr treas bond yield, find price:
Suppose a $100,000 T bond has three years to maturity, a 5.32 % annual coupon rate, semiannual coupons, and a yield of 5.12%. Its price is $.
This price is quoted in points and 32nds as -.
|
Why are data considered a valuable resource
: Why are data considered a valuable resource that is worthy of extensive protection?
|
|
The issue will pay an annual dividend
: E-Eyes.com Bank just issued some new preferred stock. The issue will pay an annual dividend of $16 in perpetuity, beginning 5 years from now. If the market requires a return of 3.0 percent on this investment, how much does a share of preferred stock ..
|
|
An economy enters expansion
: When an economy enters expansion, the unemployment rate first increases and then decreases. Why does this happen?
|
|
Universal rental car pricing simulation
: Weekday vs. weekend demand. How did they differ? What are they a proxy for? How did their price responsiveness differ and why? How did you use this information in your pricing decisions?
|
|
Present value-multiple payments-annual discounting
: I want to have $1,000,000 at the end of 1 year, $1,000,000 at the end of 2 years, and $1,000,000 at the end of 3 years. If the interest rate is 5.2%, I need to invest $ now to achieve these payouts.
|
|
Why is control over unauthorized access so important
: Why is control over unauthorized access so important in a database environment?
|
|
Presume a zombie apocalypse will occur
: Presume a Zombie Apocalypse will occur. Describe how it will affect one of the major economic variables (consumption, investment, government expenditures, imports and exports, capital, profits, labor force, banking, money...)
|
|
What will united states look like without illegal immigrants
: Is an amnesty program (with a deadline date) the best solution to solving the problem of immigration in America? What will the United States look like without illegal immigrants? (Perhaps examine some of the states with new firm immigration polici..
|
|
Differentiate between centralized data processing
: Differentiate between centralized data processing and distributed data processing.
|