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WITCHER [35]
2 years ago
13

You are due to receive a lump-sum payment of $1,350 in four years and an additional lump-sum payment of $1,450 in five years. As

suming a discount rate of 2.0 percent interest, what would be the value of the payments today
Business
1 answer:
FrozenT [24]2 years ago
8 0

Answer:

2560.50

Explanation:

For bond valuation, the investor would be willing to pay, at the most, the present value of the future income stream discounted at 2%. Thus, the value of the bond can be determined as follows:

Years  1 2 3 4 5 Total  

Principal              1,350 1,450 2,800  

Interest  0    0      0      0       0        0  

Total inflow 0 0  1,350 1,450 2,800  

[email protected]% 0 0 0  1,247 1,313 2,561

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You are US company, 500,000 BP (British Pound) payable to UK in one year. Answer in terms of US$. Information for Forward Contra
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The earned income credit: a.Must be calculated on earned income as well as adjusted gross income in some cases. b.Is available o
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Answer:

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Explanation:

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2 years ago
Free trade agreements (FTAs) led most directly to which of the following outcomes?
svlad2 [7]
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6 0
2 years ago
Read 2 more answers
You have a $50,000 portfolio consisting of intel, ge, and con edison. you put $20,000 in intel, $12,000 in ge, and the rest in c
DanielleElmas [232]
The calculation of portfolio beta is done by simply multiplying the percentage of each portfolio with each beta and summing up all the products afterwards.

For intel:
     = ($20,000/$50,000)(1.3) = <em>0.52</em>

For GE:
    = ($12,000/$50,000)(1) = <em>0.24</em>

For Con Edison:
   Portfolio of Con Edison = $50,000 - ($20,000 + $12,000) = <em>$18,000</em>
   = ($18,000/$50,000)(0.8) = <em>0.288

</em>
<em />The portfolio beta is:
<em>   </em><em />PB = 0.52 + 0.24 + 0.288 = 1.048

<em>ANSWER: 1.048</em>
5 0
2 years ago
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