Present Value Calculation & Risks

Present Value Calculation & Risks

Answer these questions in a 1 to 2-page paper.

• You have just won the Lottery jackpot of $11,000,000. You will be paid in twenty-six equal annual installments beginning immediately. If you had the money now, you could invest it in an account with a quoted annual interest rate of 9% with monthly compounding of interest.
  • Calculate the present value of the payments you will receive. Show your calculations using formulas in your paper or in an attached spreadsheet file. Present Value Calculation& Risks
  • Explain why there is a difference between the present value of the Strayer lottery jackpot and the future value of the twenty-six annual payments based on your calculations and the information provided.
• Discuss the risk and return indicated by different bond ratings. Support your answer with references to your research. Present Value Calculation& Risks

Check tips on how to do your Online Assignment Help.

Use various bond websites to locate one of each of the following bond ratings: AAA, BBB, CCC, and D. Research the differences between the bond ratings, the required interest rates, and the risk. List the websites used as sources for this research. Present Value Calculation& Risks

• • Identify the strengths and weaknesses of each rating. Present Value Calculation& Risks,

Provide reliable resources,

1. Answer these questions in a 1 to 2-page paper.

• You have just won the Lottery jackpot of $11,000,000. You will be paid in twenty-six equal annual installments beginning immediately.,If you had the money now you could invest it in an account with a quoted annual interest rate of 9% with monthly compounding of interest.,
  • Calculate the present value of the payments you will receive. Show your calculations using formulas in your paper or in an attached spreadsheet file. Present Value Calculation& Risks,
  • Explain why there is a difference between the present value of the Strayer lottery jackpot and the future value of the twenty-six annual payments based on your calculations and the information provided.,
• Discuss the risk and return indicated by different bond ratings. Support your answer with references to your research., Present Value Calculation& Risks
  • Use various bond websites to locate one of each of the following bond ratings: AAA, BBB, CCC, and D. Research the differences between the bond ratings, the required interest rates, and the risk. List the websites used as sources for this research.
  • Identify the strengths and weaknesses of each rating.

Provide reliable resources