QUESTION 1 Not complete Points out of 5.00 P Flag question Applying Time Value o

Question

QUESTION 1 Not complete Points out of 5.00 P Flag question Applying Time Value of Money Concepts Complete the missing information in the table below. Assume that all bonds interest semiannually. Do not use negative signs with answer. Round percentages to one decimal place (ex. 0.0345 Round all other values to the nearest whole number. 3.596). Annual Years to Couporn Issue Yield Maturity Rate Face value Proceeds Firm 1 8.00% 15 7.00% $500,000$ Firm 2 3.00% 10 0.00% $ $705,347 Firm 3 6.50% 5.00% $500,000 $458,353 Firm 4 96 123.50% $1,000,000 $1,114,103 Firm 5 0.80% 20 2.00% $700,000 Check

Explanation / Answer

Firm1:use pv formuale in excel to find this
=pv(rate,nper,pmt,fv,type)
=pv(8%/2,15*2,(500000*7%/2),500000,0)
=456770
Firm 2: use the formuale below
Final=initial*(1+r)^n
initial=705347/(1+(3%/2))^(10*2)
=523699
Firm 3: use nper formuale
=nper(rate,pmt,pv,fv,type)
=nper(6.5%/2,(500000*5%/2),-458353,500000,0)
=14
Years annua=14/2=7
Firm 4: use rate formuale
=rate(nper,pmt,pv,fv,type)
=rate(12*2,(1000000*3.5%/2),-1114103,1000000,0)
=1.2%*2=2.4%
FIrm 5:use pv formuale in excel to find this
=pv(rate,nper,pmt,fv,type)
=pv(0.7%/2,20*2,(700000*2%/2),700000,0)
=869558

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