1 compute the present value of a 2000 deposit in year 1 and, Ask an Expert

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1. Compute the present value of a $2,000 deposit in year 1 and another $2,500 deposit at the end of year 4 using an 8 percent interest rate.

2. What is the present value of an annuity of $5,500 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 8%.

3. What is the yield to call (YTC) of a 30 year 8% bond selling for $940? The call deferment period for the bond is 10 years.

(All bonds are semi-annual. All yield measures are stated as annual percentage rates.)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92678510

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