Explore BrainMass
Share

Value of vinyl records today

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

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%?

© BrainMass Inc. brainmass.com March 21, 2019, 10:15 pm ad1c9bdddf
https://brainmass.com/business/bond-valuation/value-of-vinyl-records-today-410168

Solution Summary

This solution with various valuation calculations.

$2.19