What is the present value of a risk-free bond that pays $250 in the following year?...

 

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What is the present value of a risk-free bond that pays $250 in the following year? Assume the risk-free rate 4% is your discount rate. (Write your answer as a number rounded to 2 decimal points. For example, if your answer is $22.56789, write 22.57) QUESTION 8 What is the present value of a three-year annuity that pays $500 every year? Assume the risk-free rate is 5% and is your discount rate. QUESTION 9 Select all true statements about NPV NPV stands for New Present Value NPV is calculated as follows: (Present Value of Income - Present Value of Expenses) It's a good idea to invest if NPV < 0 To compute NPV one must assume a return (interest) rate What is the present value of a risk-free bond that pays $250 in the following year? Assume the risk-free rate 4% is your discount rate. (Write your answer as a number rounded to 2 decimal points. For example, if your answer is $22.56789, write 22.57) QUESTION 8 What is the present value of a three-year annuity that pays $500 every year? Assume the risk-free rate is 5% and is your discount rate. QUESTION 9 Select all true statements about NPV NPV stands for New Present Value NPV is calculated as follows: (Present Value of Income - Present Value of Expenses) It's a good idea to invest if NPV < 0 To compute NPV one must assume a return (interest) rate

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QUESTION 7 To calculate the present value of a riskfree bond that pays 250 in the following year we can use the formula for present value PV FV 1 r wh... View the full answer