Question: Consider again the security issue by Spanish Word Ltd that in return for receiving 24,099 today from investors, they will pay back 100,000 in 30

Consider again the security issue by Spanish Word Ltd that in return for receiving 24,099 today from investors, they will pay back 100,000 in 30 years.

(a)Based on the 24,099 price, what rate was Spanish Word paying to borrow money?

(b)Suppose that in 2020 this securitys price is 38,260. If an investor had purchased it for 24,099 in 2014 and sold it in 2020, what annual rate of return would she have earned?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

(a) Using a bulk plasmon frequency p of 9 eV, account for the background permittivity b (assumed to be real) that leads to a surface plasmon resonance R of 2.4 eV (b) Assuming p /T is on the...

Calculating Rates of Return [LO3] Consider again the security issue by Spanish Word Ltd that in return for receiving 24,099 today from investors, they will pay back 100,000 in 30 years. (a) Based on...

Calculating Rates of Return Consider again the security issue by Spanish Word Ltd that in return for receiving 24,099 today from investors, they will pay back 100,000 in 30 years. (a) Based on the...

I have the following question and I do not under the solution - Why is n = 18? Like power to 18? Is the 2020 in the question a typo and could it be 2002? Or is there another reason that it is 18 in...

Consider the security issue by Spanish Word Ltd that in return for receiving 24,099 today from investors, they will pay back 100,000 in 30 years. (Do not round Intermediate steps. Round your answer...

Q1 Calculating Present Values [LO2]Imprudential plc has an unfunded pension liability of 800 million that must be paid in 20 years. To assess the value of the firms equity, financial analysts want to...

Consider again the security issue by Spanish Word Lid that in return for receiving $24,099 today from investors, they will pay back $100,000 in 30 years. (a) Based on the E24,099 price, what rate was...

Can someone help me with this? I need it by tomorrow chapter 2 Issues in Accounting for Corporate Debt and Equity istockphoto Learning Objectives Be able to articulate the advantages and...

Listen to the following videos and then complete the assignments using the changed numbers on the guidance report. Place your answers on the guidance report. Open the Guidance Report and rework the...

just only 2 questions ,please read the requirment word by word and be careful about the style of the reference(APA) , file 3.1 is for question 2..BTW,please focus the every step FINANCE SPOTLIGHT...

The following information is available from the Arugula Company: Actual factory overhead $16,800 Actual fixed overhead expenses $ 9,200 Budgeted fixed overhead expenses $ 9,500 Actual hours 3,600...

Some watch dials are coated with a phosphor, like ZnS, and a polymer in which some of the 1H atoms have been replaced by 1H atoms, tritium. The phosphor emits light when struck by the beta particle...

Approximate the sum of the series by using the first six terms. n = 0 ( - 1 ) n 6 n ! 2 . 1 9 2 S 2 . 2 0 8 2 . 1 5 5 2 . 2 3 2 . 2 5 2 . 2 0 5 2 . 1 9 2 . 1 6 2 . 2 5 2 . 2 0 5 2 . 1 9

On January 20, 2011, a personal residence which originally cost $280,000 was converted into a rental property. At this time the property had a fair market value of $320,000. On June 1, 2013, the...

Mirage Resorts, Inc., recently completed construction of Bellagio Hotel and Casino in Las Vegas. Total cost of this project was approximately $1.6 billion. The strategy of the investors is to build a...

Johnny Worker earns $2,500 per month as the manager of a grocery store. Johnny has 20% of his earnings withheld for federal income taxes. There are no other amounts withheld except for those required...

Taylor Company has the following obligations at December 31: (a) A note payable for $10,000 due in six months; (b) Unearned revenue of $12,500; (c) Interest payable of $15,000; (d) Accounts payable...

What are the steps in preparing a bank reconciliation? Discuss.

Please help it's urgent thank you. please write 400-450 words. thank you QUESTION 4 (20 MARKS) The success of any project is dependent on a diverse range of skills, abilities and competencies of the...

4. Give examples from your everyday life where the process affects the result, but where the result also affects the process.

6. Give examples of circular patterns in a communication situation that you have participated in, where element A affects B, and B affects A.

3. Find examples from your everyday life of people or situations that fit the Ithaca Syndrome.