A Question 1 Suppose you are offered an investment that will allow you to triple your money in 8 years. What is the implied rate of interest? Retake question O 14.72 percent O 9.26 percent Not enough information 11.61 percent 8.50 percent
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A: Here, To Find: Future value (FV) =?
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A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
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A: Correct answer 4th option, 0.500%.
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- Problem 1: You can choose between two different investments: (A) an annuity that pays $10,000 each year for the next 6 years; (B) a perpetuity that pays $10,000 forever, starting 11 years from now. 1. Which investment do you choose, A or B, if the interest rate is 5%? What if it is 10%? Explain in words the reason behind your choices.Question 4 a) Mike is a speculator and has the following information with regard to the financial markets: Eurodollar Rate = 5% per annum (2.5% for 180 days) Yen Rate = 3% per annum (1.5% for 180 days) Spot Y/$=Y107.00 = $1.00 F180 Y/$=Y 103.00 = $1.00 Mike decides to borrow $20 million for 180 days, to try and see if he can make money on the market. Explain in detail how he will proceed and his NETT profit or loss at the end of the transaction. Show all your calculations. b) What do you understand by the Yen Carry Trade? Is this an example of Covered or Uncovered Interest Arbitrage?QUESTION 5 You own two investments, A and B, that have a combined total value of $17,400.00. Investment A is expected to make its next payment in 1 month. A's next payment is expected to be $93.00 and subsequent payments are expected to grow by 0.56 percent per month forever. The expected return for investment A is 0.90 percent per month. Investment B is expected to pay $142.00 each quarter forever and the next payment is expected in 3 months. What is the quarterly expected return for investment B? O-1.43% (plus or minus 2 bps) O 0.82% (plus or minus 2 bps) O 0.53% (plus or minus 2 bps) O 0.34% (plus or minus 2 bps) O none of the answers are within 2 bps of the correct answer
- Question 7 Consider the two investments shown in the table. Find the present value of each at Year 0 assuming an interest rate of 5%. What is the percentage difference in the present values (with Investment 1 as the base of the percentage)? Year 0 1 2 3 Investment #1 Investment #2 $0 $100. $100 $1,100 $0 $100 $1,100 $0A ALEKS - Harley Biltoc - Learn O Exponential and Logarithmic Functions Finding the present value of an investment earning compound interest Explanation Check X www-awu.aleks.com S myPascoConnect C To help with his retirement savings, Pablo has decided to invest. Assuming an interest rate of 3.43% compounded quarterly, how much would he have to invest to have $128,900 after 16 years? Do not round any intermediate computations, and round your final answer to the nearest dollar. If necessary, refer to the list of financial formulas. MacBook Air 3/5 Portal Harley Ⓒ2023 McGraw Hill LLC. All Rights Reserved. Terms of Use | Privacy Center | Acces.question 5 out 20
- Q. 16 Consider a security with a duration of 7 years. The current interest rate level is 10% p.a. How does the price of the security change if interest rates increase by 1.5% (round your answer to two decimals) ? Choose the correct option The price of the security will decrease by 1.5%. The price of the security will increase by 1.5%. The price of the security will decrease by 8.5%. The price of the security will increase by 9.55%. The price of the security will decrease by 9.55%.10. Finding the interest rate and the number of years The future value and present value equations also help in finding the interest rate and the number of years that correspond to present and future value calculations. If a security of $4,000 will be worth $5,324.00 three years in the future, assuming that no additional deposits or withdrawals are made, what is the implied interest rate the investor will earn on the security? ○ 6.00% ○ 7.50% ○ 10.00% ○ 12.00% If an investment of $35,000 is earning an interest rate of 11.00% compounded annually, it will take value of $58,977.04-assuming that no additional deposits or withdrawals are made during this time. for this investment to grow to a Which of the following statements is true, assuming that no additional deposits or withdrawals are made? If you invest $1 today at 15% annual compound interest for 82.3753 years, you'll end up with approximately $100,000. ○ If you invest $5 today at 15% annual compound interest for 82.3753 years,…QUESTION 2 • The following two investment options are viewed under an annual effective interest rate of i. Investment A is a 10-year zero coupon bond which redeems at par-value 250. Investment B is a perpetuity-immediate paying an annual payment starting with 4 and having each successive payment increase by K% from the previous payment. • If the volatility of each investment is 8, then find the value of K. Give your answer as a decimal rounded to two places (i.e. X.XX)...i.e. if your answer was K% = 2.54%, you would answer 2.54. ||
- Question 33 Growing Annuity Problem: Set Calculator to BEGIN for this problem.i.e., we are assuming Payments are at beginning of year (Annuity Due). Assume you save $7500 at the beginning of each year AND you increase this amount by 3.5% each year. How much will you have in 40 years if your expected return = 8% per year. [NOTE: I have %3D rounded the answer to whole dollars.) O $3.245,998 $3,197,747 $2,503,625 $1,228,358 O $802,622 Question 34 Growing Annuity Problem: Set Calculator to BEGIN for this problem.ie, we are assuming Payments are at beginning of year (Annuity Due). Assume you have just retired and you currently have $2,500,000 in ch vear for6fQuestion 4 How long should Php2,500 be invested so that it becomes Php6,500 at 4.5% simple interest rate? 4 8.79 years 35.56 years 10.39 years 21.33 years