1. What is the present value of $15,000 received
a. 12 years from today when the interest rate is 8% per? year?
b. 24 years from today when the interest rate is 16% per? year?
c. 6 years from today when the interest rate is 4% per? year?
2. Finding the current value of $1,000 to be received at the end of each of the next 5 years requires calculating the ___________.
a. present value of an annuity
b. present value of a single sum
c. future value of an annuity
d. future value of a single sum
3. A $1000 face value bond with coupon rate of 9% paid annually has six years to maturity. If bonds of similar risk are currently earning 11%, what is the current price of the bond.