QuickHelper

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About QuickHelper

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Teaching Since: May 2017
Last Sign in: 353 Weeks Ago, 3 Days Ago
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  • MBA, PHD
    Phoniex
    Jul-2007 - Jun-2012

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  • Corportae Manager
    ChevronTexaco Corporation
    Feb-2009 - Nov-2016

Category > Business & Finance Posted 11 Jun 2017 My Price 13.00

How do I calculate market value and what formulas do I use?

Question description

 

Calculate the current market value of:

a) A 10 year annuity paying $6000/yr when similar annuities yield 3%

b)A perpetual bond that pays $1000/yr when the current annual rate is 6%

c) A perpetual bond that initially pays $1000/yr, which will grow at a 2% annual rate when the current annual rate for similar perpetuals is 6%.

I was given a market value formula but when I used it on a test for a question like this one I got it wrong because apparently they don't all use the same formula.

Please help!

Answers

QuickHelper
(10)
Status NEW Posted 11 Jun 2017 09:06 AM My Price 13.00

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