Question: 1) A financial security will pay the holder a constant $300 per year, forever. What is the value of this security today if the next
1) A financial security will pay the holder a constant $300 per year, forever. What is the value of this security today if the next payment is one year from today, and the required return is 12% APR compounded annually?
2) A car loan has exactly 16 monthly payments of $612.47 remaining, with the next due 1 month from today. What is the remaining balance on this loan if based on 6% APR compounded monthly?
3) A zero-coupon bond with a face value of $1,000 has 9 years until maturity. What is the price of the bond if investors require a yield-to-maturity of 10% per year?
Please, answer all for a full rate.
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