A deposit of $730 earns interest rates of 9 percent in the first year and 12 percent in the second year.   What would be the second year future value? (Round your answer to 2 decimal places.)

Q: sider the following three-bond portfolio in which all the bonds are option free: Bond Price Par…

A: The duration of portfolio is weighted average duration of portfolio of bonds depending on the market…

Q: What if the beta is over 1?

A: Beta - It is a measure of its volatility of returns in comparison to the entire market. Beta is a…

Q: The ABC company is considering constructing a plant to manufacture a proposed new product. The land…

A: Here, Land costs = P15,000,000 Building costs = P30,000,000 Equipment costs = P12,500,000 Working…

Q: A bond, paying semi-annual coupons of 8% per annum, matures in 18 months time, and has a dirty price…

A: Dirty price of a bond Dirty price of a bond is calculated as shown below. Dirty price=Clean…

Q: From California to New York, legislative bodies across the United States are considering eliminating…

A: Non customers earn wage - $ 26/ hr ATM fees - $ 3.50 / transaction   Based on the given information,…

Q: What is the yield to maturity at a current market price of $834? Round your answer to two decimal…

A: Yield to maturity is the yield earned when the bond is held till maturity. The YTM is the discount…

Q: You’re called out of an investment committee meeting at your real estate company for an important…

A: Analysis of various descriptions on comparable properties: Description Analysis Distance from…

Q: At the start of May, you purchased some shares in Apple (a US company) for $US 45.61, and hedged…

A: Holding period return is helpful in measuring the comprehensive view of the performance of an…

Q: How would I do the same calculation if Beta is 1.2? That would be 1-1.2= -0.2 invested in the money…

A: Beta, in fact, provides the risk profile of an asset.

Q: Jesse borrowed $30,000. The company plans to set up a sinking fund that will repay the loan at the…

A: Sinking fund is a fund created where regular payments are being made to repay the loan at the end of…

Q: For the past years, real estate prices in a city have been increasing at an exponential rate of 2.7%…

A: Purchase price after 3 years (X) = OMR168,789.92 Interest rate (r) = 0.027 e = Mathematical constant…

Q: Soren is ready to purchase a house that costs $300,000. He wants the minimum LTV to avoid PMI. He…

A: To avoid paying PMI is to make a down payment that is equal to at least one-fifth of the purchase…

Q: For CAPM, if we define Rm as the SP500 what is the beta of the SP500 index fund? Re- Rf = alpha +…

A: Beta is releative co-movement of market portfolio with respect of assest. or we can say it captures…

Q: 3. A company has preferred stock that can be sold for $27 per share. The preferred stock pays an…

A: The preferred stock is offering with fixed dividend and the cost of preferred stock is calculated as…

Q: c=$6, K=$30,  S=$50, r=5%, T=3months WHAT IS THE LOWER BOUND OF CALL? Is there an arbitrage…

A: Call premium is $6 Strike price K is $30 Spot price is $50 Risk free rate is 5% Time period is 3…

Q: pose Brian has $1000 to lend to one of two friends for 6 months. The first friend, Tom, is offering…

A: Future value of money increases with more compounding because effective interest rate increases with…

Q: q27-  Which of the following related to the Correlation coefficient (r) are true?     Select…

A: A correlation coefficient is a numerical measure of some type of correlation, meaning a statistical…

Q: C Inc. is planning to issue new annual coupon bonds with a maturity of ten years. The company…

A: The bonds have the annual interest payments to be paid and the face value is to be paid on the…

Q: A father is planning a savings program to put his daughter through college. His daughter is now 13…

A: Annuity payment Annuity payments are money invested or deposited on a regular interval such as…

Q: Alex is an investor and he wants to make an investm of $500,000 in to your VR/AR Headset…

A: The following options available for alex to invest in my business is 1. Equity Investment ordinary…

Q: $20,500 is invested in this portfolio which consists of stocks Netflix (NFLX) and Amazon (AMZN).…

A: To Find:  Portfolio expected return Standard deviation

Q: A mortgage effective 1/1/2016 is being amortized by equal monthly installments of X at a nominal…

A: Loans are paid by the equal and fixed monthly installments that carry the payment for interest and…

Q: Consider a bond with a modified duration (in years) of 3.2. Coupon rate and yield to maturity are…

A: Solution: A financial instrument that doesn’t affect the ownership of the common shareholders or…

Q: 5. Audrey Sanders sells closet organization systems. She is paid a commission of 5.14% of her first…

A:

Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…

A: Particulars Pan Elixir Rebound Cheers Think local Last year dividend $2.50 $0.50 $1.00 $0.75…

Q: You are examining three different shares. Share A has expected return -0.30%, beta -0.49, and…

A: Capital asset pricing model is a model which helps to identify the impact of systematic risk on the…

Q: Bank A pays 5% interest compounded annually on deposits, while Bank B pays 4.25% compounded daily.…

A: Given,  Bank A pays 5% compounded annually Bank B pays 4.25% compounded daily.

Q: Calculate the net present value of the proposed equipment purchase. Bramble uses a 10% discount…

A: Net Present Value: It is a measure used in capital budgeting to determine the project's or…

Q: search annuities and calculate an annuity that pays you monthly (like a pension) for a 30 year…

A: Annuities are uniform periodic monthly payments that are paid over the period of time based on the…

Q: ding to the time value of money concept, also referred to as the present discounted value, is based…

A: Time value of concepts as the time period goes on due to the inflation goes on increasing and hence…

Q: They plan to invest in an ordinary annuity that earns 7.2% interest compounded quarterly. Payments…

A: An annuity is a series of regular payments that are provided in exchange for a lump sum amount paid…

Q: (5) At a certain rate of compound interest an investment of P 100,000 will grow to P 150,000 at the…

A: Rate of growth can be calculated as under: = [(Future Value/ Value at initial year)^(1/number of…

Q: Is it ethical to concentrate only on shareholder wealth, or should stakeholders as a whole be…

A: A shareholder is a person who owns shares of a company. Shareholders are also  owners of a company…

Q: PMT to determine the regular payment amount, rounded to the nearest dollar. The price of a home is…

A: Mortgage loans are secured loans for buying homes and mostly used by the buyers of home. In the…

Q: Using the information in Question 14 above, estimate the price of the bond for a 200 basis- O A.…

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Q: Could you please verify your answer in the 5th month you have two different answers, 10.59 and…

A: A futures contract is a contract to buy or sell a certain commodity asset, securities, or both at a…

Q: Describe the differences between input and output in healthcare budgeting.Explain it? Asap

A: Input and output budgeting: This type of budget shows cost estimates and funding levels as input and…

Q: or made deposits of $5,000 at the end of each quarter to Book Bank, which pays 8% interest…

A: As more is compounding than more is interest being accumulated due to the reason effective interest…

Q: Shares in Sergeant Pepper will earn a return of 5.50% during a bull market, and 4.80% during a bear…

A: Covariance measures the relationship between two variables and to what extent they are related to…

Q: Hello. all this is a new learning experience for me. the question ask to calculate the price of…

A: The word "share" and "stock" are often used interchangeably Stock is the more generic term, whereas…

Q: Two treasury bonds (with semi-annual coupons) are traded. The first bond matures in six months, has…

A: Given: Particulars Amount First bond   Dirty price $98.99 6 months Coupon rate 8.00%…

Q: hares in SergeantPepper will earn a return of 5.80% during a bull market, and 2.40% during a bear…

A: x̅ = ∑ (x*P) y̅ = ∑  (y*P) Covariance = ∑(x - x̅)(y - y̅)] (x) P where x = Return of Sergent Pepper…

Q: Clifford Clark is a recent retiree who is interested in investing some of his savings in corporate…

A: A) Bonds which trade at the par or face value are known as Par bonds. In this case, the coupon rate…

Q: Suppose a 4-year, 3% annual coupon payment bond has the following sequence of spot rates: Time to…

A: Here, To Find: Yield to maturity =?

Q: Suppose you have $1,000,000 in savings account when you retire. Your plan is to withdraw $6,000 a…

A: To Find: Time period

Q: ciple 26,000 , 10 years, 5% , interest compound amount annually, compound amount _, compound

A: Compound interest is the interest on interest also in addition to the principal amount so due to…

Q: Alpine Luggage has a capacity to produce 420,000 suitcases per year. The company is currently…

A: The fixed costs are those cost that has no relation to the level of activity and remains the same at…

Q: QUESTION 8. Brianna purchases a Mitsubishi Lancer for $18,940, plus 17% in taxes and fees. She will…

A: Purchasing is done by monthly installments that carry the payment for interest and payment for…

Q: sum of the present values of three payments of P 100,000 each which will occur at the end of 20, 40,…

A: Present value is equivalent value today of the future value of amount based on the interest rate and…

Q: Matt is paid weekly and earns a 3.5% straight commission on sales of $6,500 or less and 5% on sales…

A: The amount of pay given to a person depending on the sales volume is known as a sales commission. On…

Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.