4. A man purchase government bonds at P750 each which mature in 10 years and have a face value of P1000 at the end of 10 years. Determine the average nominal interest rate earned by the purchase price of P750 assuming nominal compounding.

Q: Find the future value of the following ordinary annuity. Periodic Interest Rate Payment Interval Ter...

A: The time value of money states that the same amount of money will have more value today than in the ...

Q: Suppose Apple has beta_Market = 1, beta_SMB = -0.5. The average excess return on Apple is 2.5%. The ...

A: Market Beta is 1 Beta_SMB =-0.5 Average excess return on apple is 2.5% Average excess return on the ...

Q: Your company is evaluating a switch from a cash policy to a net 30 policy. The price per unit is $49...

A: Here, Selling Price per unit (P) = $49 Variable cost per unit (V) = $20 Sales units (S) = 100 units ...

Q: Which of the following supply and demand graphs for bonds issued by Company X represents what happen...

A: Default risk is the risk when the issuer of the bond is not able to make timely interest or coupon p...

Q: . (Computing individual or component costs of capital) Compute the cost of capital foreach of the fo...

A: The actual cost of issuing funds is known as the cost of capital. The cost of capital can be calcula...

Q: A forward rate agreement (FRA) is

A: Meaning of FRA i.e., Foreign Rate Agreement Forward rate agreement is a contract to determine the ra...

Q: Jack is considering purchasing a bond that is currently priced at 85.50. After performing a scenario...

A: Effective duration measures the sensitivity of the percentage change in price of a bond against the ...

Q: What is the amount of Return on Equity? (Round to the nearest 2 decimal places in percentage form)

A: ROE is a profitability ratio in finance.  ROE = net income/shareholder's equity

Q: From an economic point of view, which activity is regarded as an undertaking to prevent a loss in va...

A: Activities undertaken by a company can be divided in to two types. They are activities involving cap...

Q: 11.  Amina has a jewellery business in a well-established shop. Her most recent income statement sho...

A: Solution:- Sales implies the revenue generated by an entity from its primary operations, while gross...

Q: Some job seekers approach prospective employers directly. This process is called Prospecting.

A: Prospecting is a process by which a firm's sales team can find prsopective client or a qualified pot...

Q: What is the expected rate of return for this non-constant growth stock? You have evaluated this stoc...

A: A rate of return is the net profit or loss on an investment over a given period of time represented ...

Q: Your company is evaluating a switch from a cash policy to a net 30 policy. The price per unit is $49...

A: The discounted technique of net present value (NPV) is used to assess the effectiveness of a long-te...

Q: Find i​ (the rate per​ period) and n​ (the number of​ periods) for the following annuity. Quarterly ...

A: Solution:- An equal amount deposited every period is known as annuity. Now, in annuity, rate per per...

Q: A contract can be fulfilled by making an immediate payment of $21,100 or equal payments at the end o...

A: As per the information given in the question  Immediate payment= $21,100 Equal payment at the end of...

Q: r payoff be? What will your profit be?

A: Pay off refers to the gain or loss that buyers make from trading a stock option. There are three var...

Q: a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. Wha...

A: A bond is defined as the financial instrument that is used to raise capital from the market at a sta...

Q: 43.40 Euro 54.30 52.30 What rate will you apply for a Euro gift received by the re...

A: Foreign Exchange Rate is referred as the price of the one currency in terms of another currency.

Q: Find the future value of the following ordinary annuity. Periodic Payment Interval Term Interest Rat...

A: To Find: Future Value

Q: What cash payment is equivalent to making payments of $1471.00 at the end of every year for 8 years ...

A: Solution:- When an equal amount is paid at end of each period, it is called as ordinary annuity. Now...

Q: Find the compound amount on $3,000,000 after 16 years and 3 months, if the rate is (.06, m = 4)

A: Principal (P) = $3000000 Compounding frequency (m) = 4 (Quarterly) n = 16 years 3 months = 65 quarte...

Q: A project your firm is considering for implementation has these estimated costs and revenues: an inv...

A: NPV is used to calculate the net present value of investment or project. NPV method is used to decid...

Q: nt's employee benefits include family health insur % to the cost of coverage. She is paid monthly a ...

A: There is contribution of employee and also there is contribution from the employer also to the healt...

Q: A percentage spread of a quote USD/RUB 65.74-65.79 is: Select one a. 0.076% O b. 7.6% OG 0.075% O d....

A: Solution:- Percentage spread means the percentage difference of bid and ask price divided by ask pri...

Q: 12. Luther is a successful logistical services firm that currently has $5 billion in cash. Luther ha...

A: A share repurchase, often known as a buyback, is a decision made by a corporation to acquire its own...

Q: What is captial budgeting? Why a separate capital budget is needed?

A: The term capital budgeting comprises of two words, "Capital" means the funds needs for the particula...

Q: Lasik Vision Inc. recently analyzed the project whose cash flows are shown below. However, before La...

A: Here, Old WACC is 8% New WACC is 9.75%

Q: The nominal annual interest rate on 6-month USD Treasury Bill is 4.50%. The spot rate of the Euro is...

A:   INTEREST RATE PARITY:                               If interest rate parity holds good then inte...

Q: You have decided that you want to be a millionaire when you retire in 45 years.   a. If you can ear...

A: The value of current payment or upcoming flow of payments at any future date when flow of payment te...

Q: An annuity with a cash value of $14,000 earns 7% compounded semi-annually. End-of-period semi-annual...

A: An annuity is defined as the fixed payment made at the beginning or the end of the period for a part...

Q: Which is not true about the Banko Sentral ng Pilipinas and the Philippine banking industry?   Banko ...

A: Bangko Sentral ng Pilipinas of the Philippines is responsible for the monetary policies, monetary op...

Q: Eric invested his savings in a bank at 3.75% compounded monthly. How much money did he invest to ena...

A: The value of current payment or upcoming flow of payments at any future date when flow of payment te...

Q: Return on equity is: the rate of return that owners earn on their investment O the relationship of s...

A: Return on equity can be defined as the earning on the equity as hold by the equity shareholders of t...

Q: What is the difference between a covenant not to compete in a contract versus a covenant not to comp...

A: Covenant A covenant is a formal legal agreement between two parties for doing or not doing some spec...

Q: If you had two investments to choose from, one a perpetuity that pays $100/year forever, or the othe...

A: Alternative 1: Perpetuity that pays $100/year forever Alternative 2: Bond that pays interest of $10...

Q: Simon brothers has perpetual preferred stock outstanding that sells for $21.50 a share and pays a di...

A: Solution:- Preferred stock is hybrid form of common shares and bonds. They get a fixed dividend per ...

Q: Assume a selling price of $88,000, a down payment of $24,000, and a mortgage at 13% for 30 years. If...

A: Here selling price is 88,000 and down payment is 24,000 Hence loan amount = selling price - down pay...

Q: A man paid 10% down payment of P1,500,000 for a house and lot this month of January. The rate of int...

A: The present value of the loan is equal to the sum of the present values of all the future installmen...

Q: Alain Dupre wants to setup a scholarship fund for his school. The annual scholarship payment is to b...

A: First We need to write down the Values given in the Question i.e  Annual scholarship payment = $3500...

Q: James deposits $1000 at the end of each quarter for 10 years, in an account paying 18 % compounded q...

A: Quarterly deposit (P) = $1000 Period = 10 Years Quarterly period (n) = 10*4 = 40 Interest rate = 18%...

Q: You own a put option on Ford stock with a strike price of $9. When you bought the put, its cost to y...

A: Put Option: A put option gives the holder the right, but not an obligation to sell the underlying as...

Q: A contract can be fulfilled by making an immediate payment of $21,100 or equal payments at the end o...

A: Solution:- When an equal amount is made at end of each period, it is called as ordinary annuity. Now...

Q: How long will it take to save $2581.00 by making deposits of $227.00 at the end of every month into ...

A: It can be calculated using  =NPER(rate,pmt,pv,[fv],[type]) Rate The interest rate for the loan. Npe...

Q: Cash flows in Rs millions of three options (A, B, and C) for Year-1, Year-2, Year-3 and Year-4 are A...

A: NET PRESENT VALUE:                           It is the value which gives an investor to make righ...

Q: A construction company agreed to lease payments of $481.44 on construction equipment to be made at t...

A: a) Original lease payment PNT=$481.44 (Quarterly) n= 5*4= 20 Months i= 7/4= 1.75%= 0.0175  PVn= PNT1...

Q: Following are the card rates announced by the dealing room at 9.00am in the morning          Ch...

A: The selling rate and the buying rate are the exchange rates at which an institution buys or sells th...

Q: Sally decides to buy a Treasury note futures contract for delivery of $100,000 face amount in Decemb...

A: Here, Buy a Treasury Note at 110'8.5 Note: T notes are quoted in 32nds Therefore, Value of Treasury ...

Q: Consider two firms – Alpha Co. and Omega Co. – that operate in the manufacturing of mountain bikes a...

A: Degree of operating leverage measures the change in the operating income of the company with the cha...

Q: 1. The minimum required return by Cross-Ocean’s debtholders  2. The minimum required return by Cross...

A: Weighted average cost of capital (WACC) refers to the combined cost of company's capital from all th...

Q: Which of these is not typically a responsibility of a property manager? Maintenance programs O Marke...

A: Property manager is the person who sees the day to day working of the real estate.The responsibility...