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What is the Present Value of the Bonds at January

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Q1. ABC Co. lend out 5,000 1,000 face bonds on January 1, 20x1. The bonds are set to mature on December 31, 20x5 with a yearly interest of 12% payable on December 31 of each year. Market interest rates for similar debt instruments are at 10%. What is the Present Value of the Bonds at January 1, 20x1?

Q2. ABC Co. lend out 5,000 1,000 face bonds on January 1, 20x1. The bonds are set to mature on December 31, 20x5 with a yearly interest of 10% payable on December 31 of each year. Market interest rates for similar debt instruments are at 12%. What is the Present Value of the Bonds at January 1, 20x1?

Q3. ABC Co. lend out 5,000 1,000 face bonds on January 1, 20x1. The bonds are set to mature on December 31, 20x5 without interest. Market interest rates for similar debt instruments are at 12%. What is the Present Value of the Bonds at January 1, 20x1?

Q4. ABC Co. lend out 5,000 1,000 face bonds on January 1, 20x1. The bonds are set to mature on December 31, 20x5 with a yearly interest of 14% payable on December 31 of each year. Market interest rates for similar debt instruments are at 10%. What is the Present Value of the Bonds?

Reference no: EM133074284

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