Finding the current value of 1000 to be received at the end


1. What is the present value of $15,000 received

a. 12 years from today when the interest rate is 8% per? year?

b. 24 years from today when the interest rate is 16% per? year?

c. 6 years from today when the interest rate is 4% per? year?

2. Finding the current value of $1,000 to be received at the end of each of the next 5 years requires calculating the ___________.

a. present value of an annuity

b. present value of a single sum

c. future value of an annuity

d. future value of a single sum

3. A $1000 face value bond with coupon rate of 9% paid annually has six years to maturity. If bonds of similar risk are currently earning 11%, what is the current price of the bond.

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Financial Management: Finding the current value of 1000 to be received at the end
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