Shipped from Malaysia (67)I would like to know how you interpreted the statement below and found a correct solution. “Steamliner, Inc. has a project that it expects will produce a cash flow of $4.5 million in 10 years. To finance the project, the company needs to borrow $1.5 million today. The project will produce intermediate cash flows of $125,000 per year that the company can use to service annual coupon payments. The firm’s underwriter suggests that the market would be receptive to a 10-year bond with a face value of $2 million with a $125,000 annual coupon (paid at the rate of $62,500 every six months). Alternatively, Steamliner has the option to raise the $1.5 million by issuing 10-year zero coupon bonds with a face value of $3.5 million. What is the annualized yield to maturity (YTM) on the preferred option? (Recall that the compounding interval is 6 months and the YTM, like all interest rates, is reported on an annualized basis.)” Thanks for your help. First create a timeline with 0 period and 20 more periods since the coupons will be paid per six months

Enter the data appropriately into the Excel worksheet cells as shown Now use the RATE() function to calculate the Yield to maturity: ‘=RATE(2, 62500,-1500000, 2000000) where 20 = number of periods, 62500=coupon payments every period, -1.5M=money to be raised, 2M=face value of bonds. Multiply this value by 2 to get the annualized Yield to Maturity or YTM. Use the RATE() function again with the ‘zero-coupon-bonds: = RATE(20,0,-1500000, 2000000) to get the 6-month YTM. Multiply the result by 2 to get the annualized YTM. Another method to calculate the 6-monthly YTM is to use the IRR function as shown Yet another way to achieve the calculations is to divide the face value $3500000 by the initial investment of $1500000, raise the fraction result to the power 1/20, subtract 1 from the result and multiply the result by 100 to get 6-monthly YTM as a percentage. To get the annualized result multiply 4.33% by 2. The RATE method in Excel appears to be the most sensible.

The Yield to Maturity rate is the cost of borrowing money from the investor. Therefore Streamliner would prefer the lower rate of 8.66%, isn’t it? Watch the training video below to learn about the valuation of bonds in MS-Excel: Watch the video on YouTubeThe Real Estate Book Prince Edward Island The Real Estate Book Prince Edward Island Home & Lifestyle Guide Vol 2, Issue 8honeywell haw 501 e vita air purifier/humidifier Real Estate Listings and Home Services on Prince Edward Islandhomedics af-100 hepa air cleaner review 10-Year Non-Prorated Heat Exchanger Warrantyoransi v-hepa pro uv air purifier Description for Triangle Tube CC-125 Note: Product Title reflects this boiler's IBR Net Output Rating

The Challenger Combination Boiler features a unique "Two in One" heat exchanger that provides both space heating and domestic hot water. The Challenger Combination Boiler is designed to fit the needs of today's energy efficient homes. As a combination boiler, the Challenger eliminates the need for a separate domestic hot water tank. The unique heat exchanger in the Challenger heats domestic hot water directly, allowing the boiler to condense in the DHW mode, eliminating a separate heat exchanger and three-way valve. Energy Efficient with 96% AFUE Space and energy efficient Dual core heat exchanger with glycol compatible copper waterways Advanced control with near 4:1 modulation and standard outdoor reset EZ Install piping mounting bracket Primary/secondary piping is required Boiler certified to ANSI Z21.12 / CSA 4.9 Water Heater certified to ANSI Z21.10.3 / CSA 4.3 Triangle Tube Boiler Installation & Warranty Information: We recommends that the installation of all Triangle Tube Boilers be done by a licensed, trained and qualified technician with the proper knowledge and background.

Should you experience an issue during the installation or the initial startup of the unit, please do not contact the manufacturer. You should have the technician that installed the unit contact either us or the manufacturer. Triangle Tube cannot accept any service or warranty calls from anybody but a licensed technician. Neither we, or Triangle Tube can be held liable for improper installation and operation of any Triangle Tube boiler product purchased from our company. Should a warranty issue arise where parts will need to be replaced, an installation receipt will be required along with your sales receipt. Failure to provide a receipt or invoice may result in the warranty not being honored. 96,000 BTU Output Challenger Combo Boiler - Space Heating & Domestic Hot Water Displaying reviews 1-5(21 of 21 customers found this review helpful)1Yr update on Challenger combi 125 (17 of 22 customers found this review helpful)good until it breaks. Was this a gift?:No(19 of 25 customers found this review helpful)3 month followup Challenger Boiler (3 of 3 customers found this review helpful)Awesome!

(4 of 4 customers found this review helpful)easy install Displaying reviews 1-5Back to top Q&A: Ask the Questions, share answersGet answers from real customers and in-house experts with AnswerBox.1-8Q: We have been using this unit for about 4 months and it's great. Only question I have is the water takes about 1-2 minutes to warm up and feel like we are wasting water. Is there a setting we can change to have the water warm up faster?2/16/2015AkeD Boston, MA1 answer CUSTOMER CARE A: Yes, you can select the DHW button to "ON". The appliance DHW function is activated continuously. The appliance will maintain a minimum heat exchanger temperature to ensure the instant delivery of hot water. 10/27/2014 Supplyhouse StaffNew YorkQ: Do the new challenger boilers come with a separate exhaust and return vents on top of the unit? Can I use a PVC concentric vent system?10/26/2013Erik Warwick,RI1 answer CUSTOMER CARE A: The boiler has an intake and exhaust connection on top of the unit. Both can be pvc vented, and a concentric vent kit can be used.

10/28/2013 PexSupply StaffNYQ: are there any piping kits available for the 125cc boiler?10/21/2013jim florida job loc new jersey1 answer CUSTOMER CARE A: Yes, we do. /Triangle-Tube-CCRKIT202-Primary-Secondary-Manifold-Kit 10/22/2013 PexSupply StaffNYQ: What size expansion tank is recommended for the domestic hot water heater and for the boiler?10/10/2013Bill Annapolis MD1 answer CUSTOMER CARE A: The 102-1 for heating, and the 140N43 for the potable would be sufficient. 10/10/2013 PexSupply StaffNYQ: Will this boiler work for my application. The house is as follows: 1st floor 750SF in-floor radiant 1/2" pex tubing in the floor joist bays; 2nd floor 350SF heated by hot water baseboard; Basement 750SF heated by hot water baseboard. Two independent heat loss calculations indicated the house requires 50,000BTUH and I was going to upsize by 1.25-1.50 (62,500 - 75,000BTU) The reason that I was considering this boiler is because I want a combo boiler for both space heating and domestic hot water heating.

I dont really want to go with one of the smaller Triangle Tube combo boilers because I dont want to sacrifice the 3.0 GPM at deltaT 70F. I also need to use a boiler rather than just a hot water heater because I have a mix of hot water baseboard and radiant in floor. Do you think this boiler would be too oversized for my application.9/12/2012Ernie Pgh, PA1 answer CUSTOMER CARE A: This boiler probably is oversized, especially based on your heat loss calculations, but should still work in your application. Keep in mind that you'd need to operate the baseboard portions of the system at relatively low return water temperatures (less than 140°F) in order for the boiler to operate in condensing mode and be able to approach its peak efficiency capabilities. 9/14/2012 PexSupply StaffNYQ: what model do you recommend for a 2 story 1850 sq condo4/12/2012tom burlington vt1 answer CUSTOMER CARE A: It depends on the BTU requirement of the condo. /pex/control/BTUCalculator ) to get an estimate. This unit should be sufficient, but may be over sized.