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While compliance and ethics programs are found to be an integral part of reducing unethical practices within an organization, there are also considerable disadvantages associated with their implementa...

8-1 Group Short Paper
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While compliance and ethics programs are found to

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Conflict is something that we, as humans must face every day. While most of us deal with conflict accordingly not everyone can decipher the types of conflict styles and using dispute resolutions metho...

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Your Answer: The social nature of humans is well known. To prosper in life, we need the company of others, and the quality of our relationships has a significant bearing on our happiness and mental he...

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7.3 - Problem Set

7.3 - Problem Set

Q FINE 332 Corporate Finance I Module 7 Problem Set Long Term Debt Please use the template provided to complete Problem Set 7. It contains all the questions and the data that you need. FINE 332 | Jan ’22 | worldwide.erau.edu All rights are reserved. The material contained herein is the copyright property of Embry -Riddle Aeronautical University, Daytona Beach, Florida, 32114. No part of this material may be reproduced, stored in a retrieval system, or transmitted in any form, electronic, mechanical, photocopying, recording or otherwise without the prior written consent of the University.

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1. A firm issues a $300 million debt obligation that pays 4.5% per year over 30 years. How much will it have to pay at the end? PV 300,000,000.00 Rate 4.50% Maturity (yrs.) 30.0 FV $1,123,595,440.36 2. Suppose that a life insurance company has guaranteed a payment of $22 million to a pension fund 15 years from now. If the life insurance company receives a premium of $10.4 million from the pension fund and can invest the entire premium for 15 years at an annual interest rate of 4.25%, will it have sufficient funds from this investment to meet the obligation? PV 10,400,000.00 Rate 4.25% Maturity (yrs.) 15.0 FV 22,000,000.00 Amount required $19,416,649.63 Over/(Under) (2,583,350.37)1. A firm issues a $300 million debt obligation that pays 4.5% per year over 30 years. How much will it have to pay at the end? PV 300,000,000.00 Rate 4.50% Maturity (yrs.) 30.0 FV $1,123,595,440.36 2. Suppose that a life insurance company has guaranteed a payment of $22 million to a pension fund 15 years from now. If the life insurance company receives a premium of $10.4 million from the pension fund and can invest the entire premium for 15 years at an annual interest rate of 4.25%, will it have sufficient funds from this investment to meet the obligation? PV 10,400,000.00 Rate 4.25% Maturity (yrs.) 15.0 FV 22,000,000.00 Amount required $19,416,649.63 Over/(Under) (2,583,350.37)