Assignment (doc) | Time, Value and Money

RUNNING HEAD: FINANCE
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UNIVERSITY NAME
STUDENT NAME
STUDENT ID
COURSE
DATE

FINANCE
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EXECUTIVE SUMMARY.
The purpose of this report is to determine the amount of retirement annuity that an individual can
receive when paid all of them at once or when paid in instalment.it also highlight the difference
in value when paid once or in full at once.it also assist in the determination of the annual deposit
to be made in order to achieve the desired goal of saving for the high school tuition fees and the
amount of money that can be saved or lost if the daughter can skip one grade in high school and
commence college one year sooner.it also highlights the concept of time value of money by
evaluating three options A,B and C.And coming up with the best option to choose.
This report also determines the selling price and the duration of the bond at the time of sale.

FINANCE
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Table of Contents
INTRODUCTION............................................................................................................ 4
QUESTION 1................................................................................................................. 4
RETIREMENT ANNUITY............................................................................................. 4
PART A.................................................................................................................. 4
QUESTION 2................................................................................................................. 5
PART A..................................................................................................................... 5
PART B..................................................................................................................... 5
QUESTION 3................................................................................................................. 5
TIME VALUE OF MONEY............................................................................................ 5
ANNUAL PERCENT RATE(APR)...................................................................................6
option A.................................................................................................................. 6
Option B................................................................................................................. 6
Option C................................................................................................................. 7
QUESTION 4................................................................................................................. 7
Bonds........................................................................................................................ 7
Coupon...................................................................................................................... 8
Determination of minimum selling price of the bond...........................................................8
Determination of the duration at the time of selling the bond................................................9
CONCLUSION............................................................................................................... 9
REFERENCES.............................................................................................................. 10