Calculate the following Time Value of Money problems a) If I am to receive $10,000 in 5 years and given a 5% rate of return, what would be present value of this amount b) If I put $7,000 in the bank at 3% interest for 10 years , what is the future value of that amount c) If I deposit $1,000 a year into an account for 10 years at 2%, what is the future Value of that account d) what is the present value of $1,000 a year deposited for 10 years at 4% interest.
The above questions have been answered, I need help with the below 4 questions:
1. Why would an investor agree not take a dividend and agree to let a firm reinvest earnings back into a firm.
2. Please explain the different capital budgeting techniques, please discuss the pros and cons.
3. Please calculate the value of a 30 year bond with a 10% coupon , that is due in 8 years, with current interest rates of 6%.
4. Please explain why it would be a premium or discount bond.