Question: how to solve these questions using EXCEL If the discreet rate is 7.5 percent, then the equivalent continuous rate is? a. None of the answers




If the discreet rate is 7.5 percent, then the equivalent continuous rate is? a. None of the answers b. 0.0723 c. 0.0753 d. 0.0724 Suppose that the interest rate is compounded continuously what is the PV of $1100 realized 3.5 years from now if the rate is 0.04. a. 956.2941 b. 967.07 c. 1100.02 d. 958.91 e. None of the answers Consider the following clash flows for possible project CF0 =200, CF1 =100, CF2 =160, CF3 =200, CF3 = 240 Risk free rate =0.02, Interest rate =0.03, required rate of return =0.07 Calculate the IRR Consider the following clash flows for possible project CF0 =200, CF1 =100, CF 2=160, CF 3=200, CF3 = 240 Risk free rate =0.02, Interest rate =0.03, required rate of return =0.07 Calculate the NPV Calculate the value of a $1,000 bond which has 10 years until maturity and pays quarterly interest at an annual coupon rate of 12 percent. The required return on similar-risk bonds is 20 percent. a. $2,201.08 b. $835.45 c. $656.77 d. $845.66
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