a Your relative promises to pay you $ 5 , 0 0 0 , 1 2 years from now What is the maximum amount you would lend to your relative as of 8 1 5 2 0 2 0 Why b What is the present value of risk free $ 1 to be received 1 5 years from as of 8 1 5 2 0 2 0 c The bond maturing on 8 1 5 2 0 4 0 has an ask pric...

Loan to Relative and Present Value a Loan amount to your relative Its not advisable to lend money ba ...

a . Your relative promises to pay you $ 5 , 0 0 0 , 1 2

Fantastic news! We've Found the answer you've been seeking!

Question:

.

Your relative promises to pay you $

5, 000, 12

years from now. What is the maximum amount you would lend to your relative as of

8 / 15 / 2020 ?

Why?

.

What is the present value of risk

-

free $

1

to be received

15 -

years from as of

8 / 15 / 2020 ?

.

The bond maturing on

8 / 15 / 2040

has an ask price of $

74.309 .

Given this price show that the reported ask yield

1.511 %

is correct.

Related Book For answer-question

Elements Of Chemical Reaction Engineering

ISBN: 9780135486221

6th Edition

Authors: H. Fogler

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Posted Date: May 10, 2024 01:23 AM

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a . Your relative promises to pay you $ 5 , 0 0 0 , 1 2

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Elements Of Chemical Reaction Engineering

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