PROBLEMSON TIMEVALUEOFMONEY
PROBLEMSET2
Finance11
(1) How long willittake todouble agiven amount iftheannual interest rate is
9%?
(2) Ifyou make 10consecutive semiannual deposits of$1000each period what is
thevalue ofyour investment attheend iftheannual
Fin 65 Test #1
1.
A corporate bond has 15 years to maturity and pays a semi-annual coupon of
4%. The par value is $1000.
a. A required rate of return for the bond can be computed as
. Currently, the risk free rate is 0.5% and the risk
premium is 2% above
CHAPTER 2
FINANCIAL STATEMENTS, TAXES, AND
CASH FLOW
Answers to Concepts Review and Critical Thinking Questions
1.
Liquidity measures how quickly and easily an asset can be converted to cash without significant loss
in value. Its desirable for firms to ha
Chapter 05 - Introduction to Valuation: The Time Value of Money
CHAPTER 5
INTRODUCTION TO VALUATION: THE
TIME VALUE OF MONEY
Solutions to Questions and Problems
NOTE: All end of chapter problems were solved using a spreadsheet. Many problems require multi
CHAPTER 3
WORKING WITH FINANCIAL
STATEMENTS
Answers to Concepts Review and Critical Thinking Questions
1.
a. If inventory is purchased with cash, then there is no change in the current ratio. If inventory is
purchased on credit, then there is a decrease i