A firm borrows a $30,000 from the bank at 13% compounded annually to purchase so

Question

A firm borrows a $30,000 from the bank at 13% compounded annually to purchase some new machinery. this loan is to be repaid in equal annual installments at the end of each year over the next 4 years. a). Evaluate how much each annual payment will be? b). set up an amortization schedule for a $30,000 loan to be repaid in equal installments at the end of each year, of the next 4 years. c) how much interest would be paid on this loan? ABZ corporation issued new 20 year bonds on January 1, 1990 the bonds sold at par (1000) and paid a 12% coupon annually. i) what was the bonds price and current yeild on January 1, 2000 assuming interest rates fell to 10%? ii) on January 1 2005 these bonds sold for K900 in the market. what was the YTM at that date?

Explanation / Answer

Principal = 30,000
PMT = Principal /(1 - ( 1+r)-n) /r = 30,000/(1-(1+13%)-4/13% = 10,085.83

Amortisation schedule

Only 1 question and its subparts can be answereed. Please place the remaining questions in CHEGG to get answers.

Best of Luck. God Bless
Please Rate well

Years Beginning Principal PMT Interest Part of PMT= beginning Principal * 13% Principal Part of PMT= PMT - Interest part of PMT Ending Principal= Beginning Principal - Principal Part of PMT 1 30000 $10,085.83 3900 $6,185.83 $23,814.17 2 $23,814.17 $10,085.83 3095.84263 $6,989.98 $16,824.19 3 $16,824.19 $10,085.83 2187.144802 $7,898.68 $8,925.51 4 $8,925.51 $10,085.83 1160.316257 $8,925.51 $0.00

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.