| Consider a future value of $1,050,000 whose present value is $1,000,000. a) If its futurity...

 

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| Consider a future value of $1,050,000 whose present value is $1,000,000. a) If its futurity is 1 year, what is the implied interest, or discount, rate? b) What if its futurity is 2 years? c) What if its futurity is 1 year but its present value is 990,000? d) What if its futurity is 2 years, its present value is 1,000,000 but semi-annually compounded? || Today is September 10. Consider a cash flow of $1,000,000 to be paid in six months whose price is $990,000. What is its implied interest rate? III Consider a five-year annuity which pays $10,000. If its price is $46,458 what must be the implied discount rate, or yield? What if it is a perpetuity? | Consider a future value of $1,050,000 whose present value is $1,000,000. a) If its futurity is 1 year, what is the implied interest, or discount, rate? b) What if its futurity is 2 years? c) What if its futurity is 1 year but its present value is 990,000? d) What if its futurity is 2 years, its present value is 1,000,000 but semi-annually compounded? || Today is September 10. Consider a cash flow of $1,000,000 to be paid in six months whose price is $990,000. What is its implied interest rate? III Consider a five-year annuity which pays $10,000. If its price is $46,458 what must be the implied discount rate, or yield? What if it is a perpetuity?