Finance Questions
With reference to your answers above, outline the reasons why it is important for Johnny to begin contributing to his pension plan as soon as he can.
Calculate the present value of the £20,060.65 annual payments made over the period of the loan. Explain your workings.
Calculate the present value of the £1,649.89 monthly payments made over the period of the loan. Explain your workings.
20 Marks
Calculate the effective annual rate on the monthly loan repayments and explain why it is different from the 5 per cent quoted annual rate.
20 Marks
Calculate the current value of the Ollivon bond. Explain your workings
10 Marks
What is the value of the Ollivon bond on maturity? 10 Marks
Calculate the current value of the France bond. Explain your workings.
20 Marks
Calculate the current yield on the bond.
Explain the relationship between the coupon rate and the yield to maturity when a bond is priced at a premium to its face value.