Part 1View the video Bond Pricing, Valuations and Functions at the link below:https://www.youtube.com/embed/tJLR3se4Pa4Complete the missing values in table below using the Excel functions: NPER, PMT, FV, RATE, PV. In Excel leave the PV as a negative number and remember to specify FV (par value) and type parameter (set to 0 for end of period payments) even though they are optional in the Excel formula. Work to 5 decimal places in Excel.Part 2Suppose you are a financial adviser to a young couple that has just married. They are looking to invest the money they were gifted by friends and family on the occasion of their marriage. You can offer them any of the bonds, from Bond B to Bond F, in the above table. Which bond would you recommend for them and why? Remember to include in your answer the trade-off between the different features of these bonds – such as size of coupon, years to maturity and any other relevant features from the table.Your answer should be no more than 300 words.
You are offered a business partnership that guarantees you c…
You are offered a business partnership that guarantees you cash returns of $150,000 one year from now,nothing at the end of year 2, and $350,000 at the end of year 3. After year 3, the partnership will bedissolved, and there will be no more expected returns on your investment. If you analyze this planexpecting 7% compounded annually, what is this potential deal worth to you today?
You agree to repay a loan over five years with the following…
You agree to repay a loan over five years with the following stream of cash payments: $1,000; $1,100; $1,250; $1,280; and $1,300. If you wish to discount these payments to their present value today using 4%, why can you not use one annuity calculation, as seen in previous chapters?
View the video Calculate the Future Value of Uneven Cash Flo…
View the video Calculate the Future Value of Uneven Cash Flows at the link below:https://www.youtube.com/embed/dgelQWX59UI Using Excel, determine the future value of this series of expected unequal receipts five years from now if each payment is received at the end of each year, beginning one year from now, and the interest rate is 6% compounded annually.End of year 1: $3,800End of year 2: $4,400End of year 3: $5,100End of year 4: $5,800Note: Since the last payment is at the end of year 4, this is the start of year 5 so no compounding needed for this cash flow.2. When using Excel’s built-in Future Value function, why does Dr. Konners enter dollar amounts as negative numbers?
If you invest $3,000 today, $5,000 one year from now, and $3…
If you invest $3,000 today, $5,000 one year from now, and $3,000 two years from now, approximately how much money will you have at the end of the third year if you invest in a fund paying 7%?
Steve purchases preferred stock in Berklee Corporation, with…
Steve purchases preferred stock in Berklee Corporation, with each share paying a $2.50 dividend. This dividend will remain constant. If the public’s required rate of return for Berklee stock is 8%, at what price should this company’s stock sell?
What is the future value of annual payments of $3,000 for 15…
What is the future value of annual payments of $3,000 for 15 years at 2 percent?
What is the present value of a perpetuity of $17 per year gr…
What is the present value of a perpetuity of $17 per year growing at 2 percent per year with a discount rate of 10 percent?
Complete the following table by calculating the missing valu…
Complete the following table by calculating the missing values:
10. Which of the following statements is correct:
10. Which of the following statements is correct: