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?
Answer the following questions in 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.
This course requires the use of Strayer Writing Standards. For assistance and information, please refer to the Strayer Writing Standards link in the left-hand menu of your course. Check with your professor for any additional instructions.
Please respond to the following:
- 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?
- In your own words and using various bond websites, locate one of each of the following bond ratings: AAA, BBB, CCC, and D. Describe the differences between the bond ratings. Identify the strengths and weaknesses of each rating.
| Unacceptable | Needs Improvement | Competent | Exemplary | |
| 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? | Points: 0 (0.00%) Did not submit calculated present value of the payments that would be received. | Points: 25.3125 (33.75%) Partially calculated the present value of the payments that would be received. | Points: 28.6875 (38.25%) Satisfactorily calculated the present value of the payments that would be received. | Points: 33.75 (45.00%) Thoroughly calculated the present value of the payments that would be received. |
| 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. | Points: 0 (0.00%) Did not submit one of the following bond ratings: AAA, BBB, CCC, and D. Did not submit the differences between the bond ratings. Did not submit identification of the strengths and weaknesses of each rating. | Points: 25.3125 (33.75%) Partially located one of the following bond ratings: AAA, BBB, CCC, and D. Partially described the differences between the bond ratings. Partially identified the strengths and weaknesses of each rating. | Points: 28.6875 (38.25%) Satisfactorily located one of the following bond ratings: AAA, BBB, CCC, and D. Satisfactorily described the differences between the bond ratings. Satisfactorily identified the strengths and weaknesses of each rating. | Points: 33.75 (45.00%) Thoroughly located one of the following bond ratings: AAA, BBB, CCC, and D. Thoroughly described the differences between the bond ratings. Thoroughly identified the strengths and weaknesses of each rating. |
| Clarity, writing mechanics, and formatting requirements. | Points: 0 (0.00%) More than 6 errors present | Points: 5.625 (7.50%) 5–6 errors present | Points: 6.375 (8.50%) 3–4 errors present | Points: 7.5 (10.00%) 0–2 errors present |
