What is the value of your investment

Assignment Help Financial Management
Reference no: EM132073908

1. A zero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value. If stated interest rates are 4% annually (with quarterly compounding) how much would you pay today for a zero-coupon bond with a face value of $2,700 that matures in 6 years?

2. You deposit $300 in a bank account that pays 6% stated annual interest compounded quarterly. What is the value of your investment at the end of 10 years?

Please round your answer to the nearest cent.

Reference no: EM132073908

Questions Cloud

What is the expected return on trevor portfolio : What is the expected return on Trevor’s portfolio?
How many years will it take to reach your goal : You aspire to have $1,000,000 in savings when you retire. Assuming you add no more to your savings, how many years will it take to reach your goal?
What stated annual interest rate : What stated annual interest rate (assuming monthly compounding) does this account offer?
What are kingman expected monthly cash outflows : What are Kingman's expected monthly cash outflows during January through April?
What is the value of your investment : What is the value of your investment at the end of 10 years?
Substantial discount from its face value : A zero-coupon bond is a security that pays no interest, and is therefore bought at a substantial discount from its face value.
How much of the scholarship if any is taxable to robbie : Robbie receives a scholarship of $20,000 to an elite private college. $12,000 of the scholarship is earmarked for tuition, and $8,000 covers his room and board.
Will robert be successful if he sues bernie for breach : Robert, age 16, signed a contract with Bernie Honda Used Cars to purchase an automobile. Will Robert be successful if he sues Bernie for breach of contract?
Do you agree or disagree with their theories : Efficient market models, although useful as ideals, cannot provide accurate descriptions of real markets.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the after-tax rate of return-equipment investment

Jaguar Oil Corp. owns a piece of petroleum drilling equipment that costs $100,000, utilizes MACRS depreciation, and has a combined 40% tax rate. Jaguar will lease the equipment to others and each year will receive $30,000 in rent. At the end of 5 yea..

  Perform a breakeven analysis

The Lade & Bach Company produces office chairs. The price of the chairs is $99.75 and the variable cost per chair is $49.75. The following fixed costs are incurred: What is the breakeven point in number of chairs? How many chairs must be sold for the..

  Compute the dividends over next five years

Suppose that firm's recent earnings per share and dividend per share are $2.90 and $2.10, respectively. Both are expected to grow at 8 percent. However, the firm's current P/E ratio of 22 seems high for this growth rate. the P/E ratio is expected to ..

  What will be the market price per share after the split

Outlet has 17,500 shares of stock outstanding with a par value of $1 per share. The current market value of the firm is $1,280,000. The balance sheet shows a balance of $142,000 in the capital in excess of par value account and retained earnings of $..

  What is the bond equivalent yield

A Treasury bill purchased in December 2015 has 115 days until maturity and a bank discount yield of 2.43 percent. Assume a $100 face value.  What is the bond equivalent yield?

  What is the pro forma net income expected to be

The firm estimates that Sales will increase by 10% while Costs are expected to vary directly with Sales. What is the pro forma Net Income expected to be?

  Investor obtained fully amortizing mortgage five years

An investor obtained a fully amortizing mortgage five years ago for $105,000 at 12% for 30 years.

  What should be the result of such an action

Due to threats by the president to set import quotas, What should be the result of such an action?

  Using economic order quantity model in placing the orders

The company is using Economic Order Quantity model in placing the orders.

  Make the net present value of this project equal to zero

Calculate the rate of return that would make the net present value of this project equal to zero,

  Growth rate indefinitely

Could I Industries just paid a dividend of $1.30 per share. The dividends are expected to grow at a 15 percent rate for the next 5 years and then level off to a 6 percent growth rate indefinitely. If the required return is 12 percent, what is the val..

  What are the different forms of financial exchange

What are the different forms of financial Exchange and their function as well as benefits?

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