# Calculating the time value of money

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I need the answers to these 4 questions. Before responding, please understand that I need this by 10 AM tomorrow morning. Thank you.

Chapter 9, Problem 2

What is the present value of:

A.      \$7,900 in 10 years at 11 percent?

B.      \$16,600 in 5 years at 9 percent?

C.      \$26,000 in 14 years at 6 percent?

Chapter 9, Problem 5

What is the present value of:

A.      \$7,900 in 10 years at 11 percent?

B.      \$16,600 in 5 years at 9 percent?

C.      \$26,000 in 14 years at 6 percent?

Chapter 10, Problem 3

Exodus Limousine Company has \$1,000 par value bonds outstanding at 10 per- cent interest. The bonds will mature in 50 years. Compute the current price of the bonds if the percent yield to maturity is:

A.      5 percent.

B.      15 percent

Based on bonds paying 10 percent interest for 20 years. Assume interest rates in the market (yield to maturity) decline from 11 percent to 8 percent:

a.            What is the bond price at 11 percent?

b.            What is the bond price at 8 percent?

c.             What would be your percentage return on investment if you bought when rates were 11 percent and sold when rates were 8 percent?