Question: can you help with 1-4 please 1) Using the tables, which of the following is not used in computing the present value of an annuity?

can you help with 1-4 please can you help with 1-4 please 1) Using the tables, which of

1) Using the tables, which of the following is not used in computing the present value of an annuity? a) The amount of each periodic payment. b) The total of all the payments c) The interest rate d) The number of compounding periods e) Present value of an annuity factor $25,000 is put in a savings account paying interest of 4% compounded annually. To calculate the balance in the account at the end of 5 years, you would use which table: a) Present Value of 1 b) Present Value of an annuity c) Future Value of 1 2) d) e) Future Value of an annuity All of the above. Which is true about a $1,000 ten year bond that pays 8% semiannually? a) It would sell for more if it were annual. b) The price goes down over time since 3) Unless the issuer defaults (doesn't pay) buyers could risk losing interest, but the value cannot drop below $1,000 If market interest rates drop to 6% the value of the bond should increase. d) fewer interest payments remain. If market interest rates drop to 6% the payments would be $30 twice per year c) e) 4) Compare the above bond to a $1,000 twenty year bond that pays 8% semiannually? The 20 yr. bond. a) should always be worth more. b) should always be worth less c) is more volatile (changes more in value) has a lower present value if rates 8%. has a higher present value if rates-8%. d) e) with changes in market interest rates

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