I need help with finance 100 homework

Jan 22nd, 2015
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)

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