GMAC has just issued bonds paying $10,000 in 2052, but nothing else until then Investors paid $500 for these bonds in 2022 What is rate of return earned by investors on these bonds Suppose that rate of return on comparable bonds moves to 11 in 2022, what would have happen to the price of these bond...

1The rate of return earned by investors on these bonds is 5 If the rate of return on comparable bonds moves to 11 in 2022 then the price of these bond ...

GMAC has just issued bonds paying $10,000 in 2052, but nothing else until then. Investors paid $500

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GMAC has just issued bonds paying $10,000 in 2052, but nothing else until then. Investors paid $500 for these bonds in 2022. What is rate of return earned by investors on these bonds? Suppose that rate of return on comparable bonds moves to 11% in 2022, what would have happen to the price of these bonds?
Suppose J. K. Thrifty bank pays 10% annual rate on deposits, on a monthly basis. This means J.K. Thrifty actually pays 0.8333% per month. What is the effective annual interest rate paid by J.K. Thrifty Bank? (Hint: use months as the length of each period and find future value)
Why would managers be interested in maximizing shareholders’ wealth? Give three reasons.
If the present value of $231.125 paid two years from today equals $200, what is the discount rate? What is the discount factor?
Suppose that I paid $3,000 for a piece of artwork that I hope will sell for $4,000 one year later. What is my rate of return on this investment? If the appropriate opportunity cost of capital for this artwork is 20%, what is the present value of my expected sale price?
As winner of an essay competition on sustainable global growth, you can choose one of the following prizes. Rank order them in your order of preference. The interest rate is 12%.

$300,000 at the end of 6 years (paid six years from now)
$18,600 a year (starting from Year 1), forever.
$28,500 a year (starting from Year 1), for the next 10 years.
$27,000 a year (starting in Year 4, or 4 years from today), forever.
$45,000 a year, starting from Year 5 and ending in Year 13.

Calculate the present value of the following cash flow streams.

$1000 in Year 2 and $ 2000 in Year 4. Interest rate is 10% for the next 3 years and 12% thereafter (Hint: Analyze years 1-3 first. Analyze year 4 separately. Combine your answers at time 0).
An annuity of $ 750 a year for 15 years, starting from Year 1. The interest rate is expected to be 10% for the next 5 years and % 14 thereafter. (Hint: analyze the PV of next five years first using 10%, then analyze the PV of years 6 through 15 separately using 14% interest rate, and the combine these two parts)