What is the effective annual return on investment vehicle

Assignment Help Finance Basics
Reference no: EM132673135

Live Forever Life Insurance Co. is selling a perpetuity contract that pays $2,093 monthly. The contract currently sells for $148,163. What is the effective annual return on this investment vehicle? (please round 2 decimal places)

Reference no: EM132673135

Questions Cloud

Discuss a positive position about each learning technologies : Discuss a positive/negative position about each of two learning technologies in a 2-3 page paper using APA format. Identify two learning technologies.
What are different types of direct access storage devices : What are the different types of direct access storage devices? Which type of DASD do you prefer for storing records and why?
Find maturity of a call option on the stock : Suppose an unexpected announcement of a large dividend on a stock doesn't affect its share price, which of the following is false?
Normally assumption of risk waivers : If someone is engaged in a highly dangerous activity (sky diving or scuba diving), then normally assumption of risk waivers must be signed.
What is the effective annual return on investment vehicle : What is the effective annual return on this investment vehicle? (please round 2 decimal places)
How does one recognize sexual harassment : How does one recognize sexual harassment? Discuss the different types of sexual harassment and what is required to support a case of sexual harassment.
Most criminal law in us is based upon individual state law : Most criminal law in the U.S. is based upon individual state law. As such, not all citizens are treated equally based upon where they reside.
Draw a contingency graph for sarah : The market price for Apple Inc., (Ticker: AAPL) was $530.90 when Sarah bought a call option today. The call premium is $57 and the exercise price is $600.
Prepare the income statement financial statements : During the year $50 of dividends were paid to the shareholders. Prepare the Income Statement financial statements

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine additional funds needed

Suppose that Marbell Corporation is operating below capacity, calculate the amount of new funds required to finance this growth. Marbell has an 8 percent return on sales and 70 percent is paid out as dividends.

  Accumulation period to fund

How large must Bonzelle Inc.'s equal annual end-of-year deposits into the account be over the 20-year accumulation

  China relative supply and relative demand

How are protectionist policies from other countries predicted to affect China's relative supply and relative demand? Hint: draw a relative supply-relative

  Assume that the expectations theory holds what does the

one-year treasury securities yield 6 percent 2-year treasury securities yield 6.5 percent and 3-year treasury

  What is one-year interest rate

If the unbiased expectations theory of the term structure of interest rates holds, what is the 1-year interest rate expected one year from now, E(2r1)?

  Determine the project irr

The ABC Company is evaluating a project which costs $200,000, is expected to last for ten years and produce after tax cash flows, including depreciation of $44,503 per year.

  Explain how a forward swap is like a swaption

Explain how a bank could use a swaption to hedge the possibility that it will enter into a pay floating, receive-fixed swap at a later date ?

  Discuss the future profit margin based on this information

Forecasting from Core Income (Medium) A firm reported the following income statement (a mounts in millions).

  What is the legal limit on current dividends

What is the legal limit on current dividends? (Do not round intermediate calculations. Input your answer in dollars, not millions (e.g., $1,234,000).)

  Value in today dollars of cash flows

Keep in mind that NPV is the value in today's dollars of cash flows to be received some time in the future minus what we must pay today to get those cash flows.

  Improve the firm cash conversion cycle

Which of the following methods can be used to improve the firm's cash conversion cycle?

  What yield to maturity is the bond offering

What yield to maturity [interest rate] is the bond offering?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd