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# Value of vinyl records today

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Please help with the following problems.

1) Joe has agreed to sell his entire collection of vinyl records to a museum in three years at a price of \$100,000. The current risk free rate is 7%. What is the value of the collection today?

2) Elder Toys has issued \$1,000,000 bond with a par value of \$1,000, coupon rate of 8%, and maturity of 30 years. Compute the price of the bond if the opportunity cost is 11%?

3) Jared has 10 shares of RCM Co. Based on the company's dividend policy, Jared will receive a total of \$450 a year in perpetuity. What is the value of each share if the rate of interest is 8%?

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#### Solution Summary

This solution with various valuation calculations.

\$2.19