第一次作业答案（1－4）
Question 1
The present value of ￡100 received five years from now is
The present value of ￡1000 received 60 years from now is
The present value ￡100 received each year beginning one year from now and ending 10 years from now is
The present value of ￡100 received each year beginning one year from now and continuing forever is
Question 2
a. i.
The interest payment per quarter on a ￡10,000 deposit
The value of ￡10,000 after six months is
Assume that the equivalent interest rate (APR) with quarterly compounding is r, then
(
Therefore, the quarterly interest payment on a ￡10,000 deposit is
Question 3
The price of the bond with face value of ￡100 is
The equivalent yield-to-maturity (APR) with semi-annual compounding is
(
The price of the bond with face value of ￡100 if the yield-to-maturity is 8% per year is
Question 4
a. The growth rate, g, is
The intrinsic value of the stock is
The expected price a year from now is
d. i. (
Therefore, the expected turn on the firm’s new investments is
(
(
iii. (
