TUTOR REEN 1

    1 When does a perpetuity that was issued in 1967 expire?
    2 What is the dollar amount that you will receive tomorrow on a 2.5 % 30 year $1000 bond that is maturing?
    3 In words describe how the Present Value of a bond is determine?
    4 What is the Future Value of a 10 year 10 % $1000 bond purchase today?
    5 Why do they refer to bond certificates as tombstones?
    6 On which number factor table could you find the 2.000 of the RULE of 72?
    7) What causes the PV of a lump sum to go down in value as time passes at a particular interest rate?
    8) How much is the Principal Repayment of a $1000 perpetuity maturing tomorrow?
    9) Where do you find the market rate on a bond certificate?
    10) You are receiving $100000 in 5 years from the U.S. Treasury the current discount rate is zero. What is a) the Future Value and b) Present Value of this transaction?
    11) Calculate the PV of a $1000 perpetuity issued in 1958 at 3 % now that the market rate is 6%.
    12) Calculate the PV of a $1000 perpetuity issued in 1932at 10% now that the market rate is 5%.
    13) You are receiving $4000 in year one $5000 in year 2 and $6000 in year 3. Please calculate the Present Value if the market rate is 10%.
    14) Sally is receiving a divorce settlement in 6 years for $250000. What is the FV value of this settlement if the market rate is 8%? What is the PV value of this settlement if the market rate is 6%?
    15) Calculate the PV of a $1000 30 year bond issued in 2007 with a stated 5% interest rate now that market interest rate is 2%?
    16) What was the original FV of the bond describe in question #15? What is the FV of the bond in question #15 today?
    17) How much is a $2000 investment made in 1917 worth today if it grew at 12%?
    18) How much is your pension worth today if you deposited $10000 annually for 15 years if it earned 20%?
    19) Your company severance is 10 annual payments of $20000. What is it worth today if the market rate is 5%?
    20) A $5000 investment made in 1917 grew at 3% for 30 years then at 5% for 40% and then finally at
    6 % for the remaining 30 years. What is it worth today?

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