Question: Additional Questions for This Expanded Assignment: 1) Please solve for the question marks (round to the nearest whole number where applicable): P.V. ? $235.00 $6,250.00

Additional Questions for This Expanded Assignment: 1) Please solve for the question marks (round to the nearest whole number where applicable): P.V. ? $235.00 $6,250.00 $3,750.00 $1,075.00 Years 5 2 8 ? 3 Interest Rate 14% ? 6 3/4% 3 1/2% 19% Compounding Monthly Semiannual Simple Annual Weekly F.V. $3,725.00 $935.00 ? $8,315.00 ? O@ E) F) Explain the differences between simple and compounded interest rates in light of the results you attained. 2) Please solve for the value of the following bonds and briefly explain your results: A) A U.S. Government Treasury Strip is quoted in the Wall Street Journal at a market price of 87:19 (87 and 19/32). If the strip is scheduled to mature in November 2025, what is the annual interest rate for this bond? B) Xenor Corporation introduced a bond in 2001 that offered a coupon rate of 8 1/2%, resulting in coupon payments of $8.50. The bond is scheduled to mature in 2030. If the current going interest rate in the market is 6 3/4%, what is the market price (please calculate the interest and the principal due to get this value) of this bond today? What is the bond selling for in the market relative to its initial value at the time the bond was introduced and what is the common term used to describe a bond that is selling at this price? C) A bond offers a coupon that makes annual payments of $87.50. The bond was originally set to mature in 17 years. A quote for this bond, obtained 15 years after the original issue date, listed the market price as $1,070.00. What is the YTM for this bond? 3) Construct a detailed Fixed Loan Amortization schedule for a 2 year corporate equipment loan of $750,000.00, payable at a 7 1/2% annual interest rate, with payments scheduled to be made on a quarterly basis. This loan calls for the payback of $93,750.00 toward the principal with each scheduled payment. Note that the schedule may be off by several dollars due to rounding. The schedule should include the following parts, which you should put in the form of a table
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
