25. A person paid $800 for a zero coupon bond. If the face value is...

60.1K

Verified Solution

Question

Finance

25. A person paid $800 for a zero coupon bond. If the face value is $1,000 and the bond matures in 5 years, what is the yield?
26. A company borrows $15,000 at an interest of 9% payable annually? What is the APR on the loan?
27. A wealthy investor endows a scholarship fund at the local university that would pay $25,000 in scholarships every year forever. If the interest rate is 10% what is the value of the endowment?
28. A company reports the following as a result of a new project:
Increase in revenues =200,000
Increase in variable and fixed costs =40,000
Depreciation =15,000
Tax rate =35%
Increase in working capital =10% of increase in revenue
What is the differential annual cash flow?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students