Question 44 of 48 Instructions: For questions 43-44, refer to the picture below. A B C D E F G H 1 2 12/31/24 12/31/25 12/31/26 12/31/27 12/31/28 3 4 Coupon Payments 600 600 600 600 600 5 Principal Repayment / Face Value 10,000 6 Total Inflow / (Outflows) 600 600 600 600 10,600 7 8 Discount Rate 8% Using the PV function, what formula would calculate the present value of cash flows from 12/31/24 to 12/31/28 using an 8.0% discount rate?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Question
Question 44 of 48
Instructions: For questions 43-44, refer to the picture below.
A
B
C
D
E
F
G
H
1
2
12/31/24 12/31/25 12/31/26 12/31/27 12/31/28
3
4
Coupon Payments
600
600
600
600
600
5
Principal Repayment / Face Value
10,000
6
Total Inflow / (Outflows)
600
600
600
600
10,600
7
8
Discount Rate
8%
Using the PV function, what formula would calculate the present value of cash flows from 12/31/24 to 12/31/28 using an 8.0% discount rate?
Transcribed Image Text:Question 44 of 48 Instructions: For questions 43-44, refer to the picture below. A B C D E F G H 1 2 12/31/24 12/31/25 12/31/26 12/31/27 12/31/28 3 4 Coupon Payments 600 600 600 600 600 5 Principal Repayment / Face Value 10,000 6 Total Inflow / (Outflows) 600 600 600 600 10,600 7 8 Discount Rate 8% Using the PV function, what formula would calculate the present value of cash flows from 12/31/24 to 12/31/28 using an 8.0% discount rate?
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