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Author Question: Assume that your required rate of return is 12 and you are given the following stream of cash flows: ... (Read 121 times)

swpotter12

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on: Jul 10, 2018
Assume that your required rate of return is 12 and you are given the following stream of cash flows:
 
  Year Cash Flow
  0 10,000
  1 15,000
  2 15,000
  3 15,000
  4 15,000
  5 20,000
 
  If payments are made at the end of each period, what is the
 
  present value of the cash flow stream? (Round to the nearest whole dollar)
  A) 66,909
  B) 57,323
  C) 61,815
  D) 52,345
  E) 62,029

Question 2

Which of the following types of bonds may the buyer sell back before maturity?
 
  A) Callable bond
  B) Putable bond
  C) Convertible bond
  D) Zero-coupon bond


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Rilsmarie951

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Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

Answer: B


swpotter12

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Reply #2 on: Jul 10, 2018
Thank you :)


Rilsmarie951

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Reply #3 on: Jul 10, 2018
Happy to help you


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