Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above.A. You have just won the Strayer Lottery jackpot of $11,000,000. You will be paid in 26 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. What is the present value of the payments you will receive?B. In your own words and using various bond websites, please locate one of each of the following bond ratings: AAA, BBB, CCC, and D. Please describe the differences between the bond ratings. Identify the strengths and weaknesses of each rating.Click here to view the grading rubric.See attached
fin534_hw_set_2_rubric.pdf
Unformatted Attachment Preview
Points: 100
Criteria
1. You have just
won the Strayer
Lottery jackpot of
$11,000,000. You
will be paid in 26
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. What is the
present value of the
payments you will
receive?
Weight: 45%
2. In your own
words and using
various bond
websites, please
locate one of each
of the following
bond ratings: AAA,
BBB, CCC, and D.
Please describe the
differences between
the bond ratings.
Identify the
strengths and
weaknesses of
each rating.
Weight: 45%
3. Clarity, writing
mechanics, and
formatting
requirements.
Weight: 10%
Homework Set 2: Chapters 4 and 5
Unacceptable Below
70% F
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100%A
Did not submit or
incompletely calculated
the present value of the
payments that would be
received.
Partially calculated
the present value
of the payments
that would be
received.
Satisfactorily
calculated the
present value of the
payments that would
be received.
Thoroughly
calculated the
present value of the
payments that would
be received.
Did not submit or
incompletely located one
of the following bond
ratings: AAA, BBB,
CCC, and D. Did not
submit or incompletely
described the
differences between the
bond ratings. Did not
submit of incompletely
identified the strengths
and weaknesses of each
rating.
Partially located
one of the
following bond
ratings: AAA, BBB,
CCC, and D. Did
not submit or
incompletely
described the
differences
between the bond
ratings. Partially
identified the
strengths and
weaknesses of
each rating.
Satisfactorily located
one of the following
bond ratings: AAA,
BBB, CCC, and D.
Did not submit or
incompletely
described the
differences between
the bond ratings.
Satisfactorily
identified the
strengths and
weaknesses of each
rating.
Thoroughly located
one of the following
bond ratings: AAA,
BBB, CCC, and D.
Did not submit or
incompletely
described the
differences between
the bond ratings.
Thoroughly identified
the strengths and
weaknesses of each
rating.
More than 6 errors
present
5-6 errors present
3-4 errors present
0-2 errors present
…
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