I need help with finance 100 homework

Jan 22nd, 2015
Business & Finance
Price: $25 USD

Question description

what is the present value of $810 annuity payment over 4 years if interest rate is 8%? (round to 2 decimal places)

compute the future value in a year of $3,500 deposit in year 1 and another 3,000 deposit at the end of year 3 using a 10% interest rate. (round to 2 decimal places)

one year treasury bills currently earn 2.80 percent. you expect I year from now a 1 year treasury bill rate to increase to 3.00 percent and that two year from now, 1 year treasury bill rates will I ncrease 3.50 percent. the liquidty premium on a 2 year security is 0.10 percent and on3-year securities is 0.20 percent. If the liquiditity premium theory is correct should the current rate be on 3-year treasury securities.  (round to 2 decimal places)

a particular security's risk default risk premium is 2 percent. the iflation risk premium is 1.90 percent and the real risk-free rate is 3.80 percent. the security's liquidity risk premium is 0.10 percent maturity risk premium is 0.70 percent. calculate t he security's equilibrium rate of return.  (round to 2 decimal places)

Tutor Answer

(Top Tutor) Daniel C.
School: University of Maryland

Studypool has helped 1,244,100 students

Review from our student for this Answer

Jan 22nd, 2015
"Goes above and beyond expectations !"
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1827 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors