American General offers 11-year annuity with a guaranteed rate of 6.42% compounded annually. How much should you pay for these annuities if you want to receive payments of 1500$ annually over the 11 year period? How much should the customer pay for this annuity?

Q: 0123 45 181 An investor is considering a business opportunity with the anticipated re- ceipts and di...

A: The net cash flow can be calculated by taking the difference between the cash disbursement and cash ...

Q: You are holding a stock that has a beta of 3.37 and is currently in equilibrium. The required return...

A: Beta = 3.37, Expected Return = 31.84% and, Risk Free Rate = 7.0%

Q: Which of the following statements describing the elements of intrinsic valuation is most accurate? ...

A: The present value of an asset or project is computed to determine which investment must be selected....

Q: Identify and discuss the relations among a bond’s coupon rate, the yield required by the market, and...

A: Bond prices are the price that we see trading in the market. these prices can be calculated by takin...

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

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

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Q: Owens & Minor (OMI) stock has an expected return of 14 percent. Its standard deviation is 36 percent...

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Q: Bill Johnson is a financial analyst working for a futures investment company. Bill's job involves re...

A: Synopsis of the case: Bill Johnson who works as a financial analyst for a futures investment company...

Q: 21)   Which is not one of the fraud factors in the Fraud Pentagon?     A. Incentive   B. Pre...

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A:

Q: Consider the 20-year fixed-rate home loan of $185,500 with an interest rate of 6.75%. What is the mo...

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Q: McCue Inc.'s bonds currently sell for $1,175. They pay a $90 annual coupon, have a 25-year maturity,...

A: Current price = $1175 Face value (F) = $1000 Coupon (C) = $90 Years to maturity (n) = 25 years Calla...

Q: National Co. recently reported sales of P100 million, and net income equal to P5 million. The compan...

A: AFN is a tool for determining how much money a company will require in the future. This strategy wil...

Q: Recommend which option will provide the most benefit for Sam.

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A: The yield curve, also known as the term structure of interest rates, illustrates the interest rates ...

Q: If the normal time is 2.00 minutes and the allowance facter is 20%, what is the standard time for th...

A: Normal time = 2 Minutes Allowance factor = 20%

Q: The firm is formed to purchase and operate a vehicle. The purpose of the vehicle is to operate a ta...

A: Net present value is the tool to identify the present value of future cash flows to check whether th...

Q: What is the present value of the following cash flows, if the discount rate is 10% annually? Beginni...

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Q: National Co., 65% owned by National Holdings Group, provides screening, diagnostic and therapeutic s...

A: D0 = P 0.14 D1 = P 0.14(1.15) = P 0.161 D2 = P 0.14(1.15)^2 = P 0.185 D3 = P 0.14(1.15)^3 = P 0.213 ...

Q: Which of the following-would be consistent with a more aggressive approach to financing working capi...

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Q: 29. CAPM and Hurdle Rates. A project under consideration has an internal rate of return of 14% and a...

A: Internal rate of return(IRR) is the discount rate for conventional series of cash flows that discoun...

Q: 1.) The valuation of an investment can be defined in numerous ways. Which is FALSE? A.) It is depen...

A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining parts ...

Q: What are the 3 approaches to appraisal valuation?

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Q: Tyrone invested a sum of money 10 years ago in an account that paid 2.25% per year compounded quarte...

A: Answer -  Formula for Future Value Calculation =  FV  = Principal / ( 1+i ) t Therefore,  Formula fo...

Q: Local Co. has sales of $10.7 million and cost of sales of $6.4 million. Its selling, general and adm...

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Q: What if I created a financial instrument which offered interest once every 2 years? To explore the ...

A: Financial instrument is a financial security through which an amount is invested for the period. Som...

Q: A bond with a par value of P 100,000 and with a bond rate of 9% payable annually is to be redeemed a...

A: To Find: Selling price of bond

Q: Who are the three (3) players who interact in the financial markets? Describe each and give examples...

A: By distributing resources and producing liquidity for businesses and entrepreneurs, financial market...

Q: Can an investor eliminate market risk from a common stock portfolio?

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Q: A customer deposits money into a bank which was able to create $10 000 000 in credit from it. The RR...

A:

Q: A partial payment is made on the date indicated. Use the United States rule to determine the balance...

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Q: Bettis Corporation issued 7 percent bonds 3 years ago with 22 years until maturity.  The coupons are...

A: Yield to call refers to the total return earned by the bondholders if the bond is held until the cal...

Q: Which of the type of insurance pays benefits to workers who suffer an injury on the job? Select the ...

A: Insurance is an agreement in which an individual or organization obtains financial security or compe...

Q: A 20-year, 10% monthly-pay bond has a par value of $1,000. If the price of the bond is $887.14, its ...

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Q: The agency problem underlies the need for sound corporate governance. In this context, the 'agents' ...

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Q: Calculate the yield to maturity of zero coupon bond.   Scenic City issued bonds to build hypermark...

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Q: For the next five years, the annual dividends of a stock are expected to be P2, P2.10, P2.20, P3.50 ...

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Q: A loan of RM8,500 at 6% compounded monthly is to be amortized by 18 monthly payments. Calculate the ...

A: Loan (L) = RM 8500 r = 6% per annum = 0.5% per month n = 18 payments Let X = Monthly payment

Q: Erin deposited $1,400 at the end of every month into an RRSP for 7 years. The interest rate earned w...

A: Annuity means a set of definite numbers of payments which are the same in size and made in equal int...

Q: ases a $1000 face value bond for $950. you held the bond for 10 years until it doubles in face value...

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Q: Suppose the market risk premium is 6.8% and the​ risk-free interest rate is 4.5%. Calculate the cos...

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Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.