• Q : What would be the total return of the bond in dollars....
    Finance Basics :

    A 6.5% coupon bond with 25 years left to maturity is priced to offer a 4.5% yield to maturity. You believe that in three years, the yield to maturity will be 12%.

  • Q : What will these yields be if the discount price falls....
    Finance Basics :

    If a six month treasury bill is purchased for .9675 on the dollar, what is the discount yield, the annual rate of interest, and the compound interest? what will these yields be if the discount price

  • Q : How old will she be when she becomes a millionaire....
    Finance Basics :

    If Kitty's fund earns the same returns in the future as in the past, how old will she be when she becomes a millionaire? Round your answer to two decimal places.

  • Q : Determine the present value of the project....
    Finance Basics :

    Suppose a third project will cost $20,000 today and yield a return of $2,500 a year indefinitely. What is the present value of the project? What is the present value if the interest rate increases t

  • Q : How much can he afford to borrow to purchase a car....
    Finance Basics :

    Phil can afford $200 a month for 5 years for a car loan. If the annual interest rate is 7.5 percent, how much can he afford to borrow to purchase a car?

  • Q : How much do you need to have in your bank account today....
    Finance Basics :

    If the account pays .45 percent interest per quarter, how much do you need to have in your bank account today to meet your expense needs over the next four years?

  • Q : Prepare an income statement for the year in good form....
    Finance Basics :

    Baba Company is a manufacturing firm that uses job-order costing. The company's inventory balances were as follows at the beginning and end of the year:

  • Q : What is the present value of the cash flows....
    Finance Basics :

    The State lottery's million dollar payout provides for 1.4 million to be paid in 25 installments of $56,000 per payment. The forst $56,000 payment is made immediately, and the 24 remaining $56,000 p

  • Q : How big will the annual payments be....
    Finance Basics :

    On December 31, Beth Klemkosky bought a yacht for $110,000 and paid $14,000 down and agreed to pay the balalnce in 9 equal annual installments that include both the principal and 8 percent interest

  • Q : How long will it take your money to grow....
    Finance Basics :

    How long will it take your money to grow to $35,000.00 if you move into an account that pays 3 percent compounded annually? How long will it take your money to grow $35,000.00 if you move it into an

  • Q : How long will it take to pay off the loan....
    Finance Basics :

    Alex Karev has taken out a $180,000 loan with an annual rate of 8 percent compounded monthly to pay off hospital bills from his wife Izzy's illness.

  • Q : How much additional money must he deposit....
    Finance Basics :

    Nicole needs $44,100 as a down payment for a house 6 years from now. He earns 4.5 percent on his savings. Theo can either deposit one lump sum today for this purpose or he can wait a year and deposi

  • Q : How soon could she then retire....
    Finance Basics :

    Sarah Wiggum would like to make a single investment and have $2.2 million at the time of her retirement in 26 years. She has found a mutual fund that will earn 7 percent annually.

  • Q : What is the most you are willing to pay as a lump sum today....
    Finance Basics :

    The Good Life Insurance Co. wants to sell you an annuity which will pay you $640 per quarter for 25 years. You want to earn a minimum rate of return of 4.9 percent. What is the most you are willing

  • Q : Discuss what is the amount of each payment....
    Finance Basics :

    You borrow $7,030 to buy a car. The terms of the loan call for monthly payments for 7 years a rate of interest of 8 percent. What is the amount of each payment?

  • Q : What are these payments worth to you....
    Finance Basics :

    Your parents are giving you $310 a month for 5 years while you are in college. At a 8 percent discount rate, what are these payments worth to you when you first start college?

  • Q : What is the length of the annuity time period....
    Finance Basics :

    You are considering an annuity which costs $74,100 today. The annuity pays $6,000 a year. The rate of return is 5 percent. What is the length of the annuity time period? (Do not round intermediate c

  • Q : What will the winners prize be....
    Finance Basics :

    In 1894, the winner of a competition was paid $120. In 2006, the winner's prize was $68,000. What will the winner's prize be in 2040 if the prize continues increasing at the same rate?

  • Q : What is the net present value of this project given....
    Finance Basics :

    Pioneer Agro is considering installing a new extractor and grinding machine which is expected to produce operating cash flows of $73,000 a year for 7 years.

  • Q : Compute the eac for both machines....
    Finance Basics :

    You are evaluating two different silicon wafer milling machines. The Techron I costs $267,000, has a three-year life, and has pretax operating costs of $72,000 per year.

  • Q : Why the fixed asset will have a market value....
    Finance Basics :

    Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.97 million. The fixed asset falls into the three-year MACRS class.

  • Q : Discuss how much additional equity financing is required....
    Finance Basics :

    XYZ Company is currently operating at full capacity, has sales of $29,000, current assets of $1,600, current liabilities of $1,350, net fixed assets of $27,500, and 5 percent profit margin.

  • Q : What is the amount of cash flow to stockholders....
    Finance Basics :

    The Lakeside Inn had operating cash flow of $43,450. Depreciation was $6,700 and interest paid was $2,480. A net total of $2,600 was paid on long-term debt.

  • Q : What is the companys new required rate of return....
    Finance Basics :

    Mikkelson Corporation's stock had a required return of 11.75% last year, when the risk-free rate was 5.50% and the market risk premium was 4.75%.

  • Q : How much are your monthly payments....
    Finance Basics :

    You've taken out $25,000.00 in student loans. If you make monthly payments over 15 years at 7 percent coumponded monthly, how much are your monthly payments?

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