| Blogs > decafchicken |
|
decafchicken
United States20168 Posts
present value of $1, 10 periods, 12% .3220 present value of $1, 10 periods, 14% .2697 present value of annuity of $1, 10 periods, 12% 5.6502 present value of annuity of $1, 10 periods, 14% 5.2161 A. $3,339,084 B. $2,843,172 C. $3,000,000 D. $2,686,896 My accounting final is in 3 hours and this is the only one on the practice test i can't figure out ~~ Help please!    | ||
|
McFly
United States116 Posts
Its a premium so the only one correct could be A right? | ||
mrmin123
Korea (South)2971 Posts
| ||
|
decafchicken
United States20168 Posts
+ Show Spoiler + D I don't know how to get it though | ||
CaucasianAsian
Korea (South)11599 Posts
all i know is that since market value > what they're selling for. they sell at a discount... and if market value < what they're selling value they sell at a premium | ||
|
Picture
Canada75 Posts
3m*.12=360000 Find present value annuity of interest payments using market 14%. 360000*5.2161 Find present value of principal using market interest 14%. 3m* .2697 Add them up. 2686896 | ||
|
infinity21
Canada6683 Posts
On December 18 2009 07:37 Picture wrote: ops edit lol 3m*.12=360000 Find present value annuity of interest payments using market 14%. 360000*5.2161 Find present value of principal using market interest 14%. 3m* .2697 Add them up. 2686896 This. Think of the bond as future cash flow. The fair price is the PV for the future cash flows. | ||
|
decafchicken
United States20168 Posts
On December 18 2009 07:37 Picture wrote: ops edit lol 3m*.12=360000 Find present value annuity of interest payments using market 14%. 360000*5.2161 Find present value of principal using market interest 14%. 3m* .2697 Add them up. 2686896 Thank you very much!!! | ||
|
Picture
Canada75 Posts
np | ||
|
sixghost
United States2096 Posts
On December 18 2009 07:55 Picture wrote: Damn you, this would have been the first HW thread I've ever been able help on.Just remember to use the given rate (12% here) to calculate each interest payment (thats what you get each month), but use the market rate to calculate the present value (both for principal and the interest payments) np | ||
|
Cambium
United States16368 Posts
did anyone else read the topic as "Account testing help"? I thought it was an iccup related thread. | ||
|
ShaperofDreams
Canada2492 Posts
 | ||
|
decafchicken
United States20168 Posts
On December 18 2009 10:26 ShaperofDreams wrote: Enjoy your future career as an accountant hahahaaha i would never become an accountant after taking that class. fucking hardest test of my life | ||
| ||
|
|
CrankTV Team League
Big Brain Bouts
Spirit vs sOs
GgMaChine vs Percival
Serral vs MaxPax
OSC
Replay Cast
Afreeca Starleague
RSL Revival
ByuN vs SHIN
Solar vs Lambo
WardiTV Summer Champion…
Afreeca Starleague
RSL Revival
Clem vs Serral
herO vs Rogue
WardiTV Summer Champion…
[ Show More ] |
|
|
EPT
