Find the present worth of the following alternating cash flow using the shortest way if n=31...

 

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Find the present worth of the following alternating cash flow using the shortest way if n=31 years for an interest rate of 10%. CF1=$1100 Jibili+ly! 4 6 5 2 3 CF2=$550 n-3 n-2 n-1 Everson Finance Inc. is issuing a bond for $1,000 par value that matures in 12 years. The bond has a coupon interest rate of 11% and pays interest annually. If your required rate of return is 10%, will you buy the bond for its par value. If not, what is the value for which you can buy the bond. Sketch the bond value for different time to maturity (i.e., 0 to 10 years) using a required rate of return of 5%. Find the present worth of the following alternating cash flow using the shortest way if n=31 years for an interest rate of 10%. CF1=$1100 Jibili+ly! 4 6 5 2 3 CF2=$550 n-3 n-2 n-1 Everson Finance Inc. is issuing a bond for $1,000 par value that matures in 12 years. The bond has a coupon interest rate of 11% and pays interest annually. If your required rate of return is 10%, will you buy the bond for its par value. If not, what is the value for which you can buy the bond. Sketch the bond value for different time to maturity (i.e., 0 to 10 years) using a required rate of return of 5%.

Answer rating: 100% (QA)

2 A Value of Bond Interest PVAF1012 years Principal PVF10 12 years 11068137 1000 03186 106811 ... View the full answer