Wiz Khalifa would like to invest in an $ 80,000 face value note payable. The note has

Question:

Wiz Khalifa would like to invest in an $ 80,000 note payable. The note has a 12- year term and pays 10% annual interest, at the end of each year. Interest is compounded annually.
a. What would he pay for the note if he wanted the note to yield 10%?
b. What would he pay for the note if he wanted the note to yield 12%?
c. What would he pay for the note if he wanted the note to yield 20%? Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the...