I need help making the cash flow diagram pertaining to my assignment. I thnk i...
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I need help making the cash flow diagram pertaining to my assignment. I thnk i calcuated the present and annual worth correctly.
Anastasia brougnt a slo, discount of 6%. She received 15 yr bound at dividend for 7 yrs, and then sold it immediately a semiannually after the 14th dividend for $2100. a) Did Anastasia make the return of 8% per year Compounded semi-annually that she wanted? Why? Hints: draw cash flow diagram for bond investement (single project). Coupon rate: 5% bound price: 2500 bound yr: 15 discount rate: 6% 2500x5% x 2 => 2500 0.05 x 2 = 62.50 A#62.50 PV = 2500 - 2500 x 0.06 => 2500 - 150 = 2350 FV - 2100
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the present and annual worth correctly. 