What is the present value of an annuity of $12 received at the end of each year for seven years? A
ssume a discount rate of 11 percent. The first payment will be received one year from today (roun
d to nearest $1).
Savells Corporation bonds make a $60 interest payment every six months (until maturity), and pa
y $1,000 at maturity 20 years from now. What is the current price of this bond if the discount rate
is 10 percent per year compounded semi-annually?
PDQ Company's preferred stock pays a perpetual annual dividend of $2 per share. If the appropr
iate discount rate for this investment is 8 percent, what is the price of one share of this stock?
cannot be determined without maturity date
You deposit $1,000 one time into a savings account earning a 5 percent annual rate compounded
semi-annually. How much will you have in your account at the end of ten years?