What is the total cost to the debtor at six months

Assignment Help Finance Basics
Reference no: EM132641957

A $10,000 loan will be repaid at the end of five years by a sinking fund that earns 12% compounded semi-annually. The interest rate on the loan is 8% compounded semi-annually.

A) What is the total cost to the debtor at the end of each six months?

B) Find the sinking fund interest income for the 10th period

C) What is the book value of the debt at the end of the 10th period?

Reference no: EM132641957

Questions Cloud

What will be the addition to retained earnings at the end : What will be the addition to retained earnings at the end of 2021. What will be the ending balance in retained earnings at the end of 2021?
Compute net present value of the investment : If the appropriate Cost of Capital (quoted interest rate) is 10.6 %, what is the Net present Value of the investment? Enter your answer to the nearest $.01.
When is external financing required in a budget and explain : In a budget, when is external financing required (EFR)? Quantifies the capital investment decisions determined in the organization's long term plans.
Explain the physical characteristics featured in the graphic : Use clinical terminologies to explain the physical characteristics featured in the graphic. Formulate a differential diagnosis of three to five possible.
What is the total cost to the debtor at six months : A $10,000 loan will be repaid at the end of five years by a sinking fund that earns 12% compounded semi-annually. The interest rate on the loan is 8% compounded
Which one statement do you prefer : Some students prefer classes with frequent discussions between the teacher and the students with almost no lectures. Other students prefer classes with many.
Is microsoft doing better or worse than the industry average : Is Microsoft doing better/worse than the industry average? Describe what you see; the company ratio, and the industry avg. ratio
Discuss the topic negligence and medical malpractice : Respond to threads posted by your classmates who reached a different conclusion than you did. Identify the points of difference in your analyses and explain.
Estimate the expected return on the stock : In December 1995, Boise Cascade's stock had a beta of 0.95. The Treasury bill rate at the time was 5.8%, and the Treasury bond rate was 6.4%.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is PHB estimated value per share

The tax rate is 35 percent. PHB has 8 million outstanding common shares. What is PHB's estimated value per share? Is PHB's stock underpriced

  Interrelationship among the various types of yields

If the interest rates remain unchanged, what is the expected capital gains yield over the next year for Bond P? For Bond D? What is the holding period return of the 1st year for each bond? Explain the answers and the interrelationship among the va..

  Determine whether an arbitrage opportunity

Determine whether an arbitrage opportunity was available and explain what transactions were executed.

  Estimate the number of common shares outstanding

Why is there a distinction among income from continuing operations, income from discontinued operations, and income from extraordinary items?

  Should the cemetery business be started

NPV Valuation. The Yurdone Corporation wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up."

  Collin county community college

Collin County Community College (CCC) has an ongoing problem that the electronic equipment in their classrooms and computer labs keeps malfunctioning

  Mortgage or home equity loan

An individual has a $120,000 30 year mortgage at 6 percent fixed. This individual also has a floating rate Home Equity line of credit for $20,000. The current rate on this loan is 8.5 percent

  Determine the expected return on the portfolio if an equal

you are considering investing in three stocks with the following expected returnsstock a7stock b12stock c20what is the

  Examine the generally accepted components of erm

Examine the generally accepted components of ERM which are present in your company and evaluate whether these components are working, failing.

  Covid-19 pandemics in malaysia

Give four (4) suggestions, what is the robust and suitable Monetary Policies during COVID - 19 pandemics in Malaysia?

  Formulate the total revenue function

(a) Formulate the total revenue function if and units are sold of product A and B respectively.

  What is the loan amount

You bought a house with price of $250,000. Your LTV (Loan-to-value ratio) is 80%. You choose the 30-year mortgage with interest rate 6%.

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