What is the equivalent annual annuity

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1. A 5.9% bond has a maturity of 14 years. The par value of the bond is $1,000. If the yield to maturity is 11.6% and the interest payments are made semi-annually, then what is the current price of the bond?

2. A project requires $29,828 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 5 given the following MACRS depreciation allowances, starting with year one: 14.29, 24.49, 17.49, 12.49, 8.93, 8.92, 8.93, and 4.46 percent?

3. ABC Company's bonds pay 8% annual coupon interest and are selling at 105 percent of par. The yield to maturity

4. Project A requires an initial investment of $7,500 at t = 0. Project A has an expected life of 4 years with cash inflows of $5,000, $4,500, $900, $2,000 at the end of Years 1, 2, 3, and 4 respectively. The project has a required return of 15%. What is the equivalent annual annuity?

Reference no: EM131387749

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