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- A bond pays a return (simple interest) of 5% and has a default rate of 3%. This bond is purchased for $1000.00. What is the expected rate of return for the purchaser?10 The observed insurance policy deviates from the predicted policy, on average, by _______ ($1,000) a 44.465 b 49.406 c 54.895 d 60.994Find the simple interest and tge maturity value in each of the following cues.
- Which of the following bond has the highest interest rate risk and why? Show work if needed. A 5 year treasury bond with 10% coupon rate, a 5 year treasury bond with zero coupon rate, a 10 year treasury bond with 10% coupon rate, or a 10 year treasury bond with zero coupon rate?State the null and alternative hypothesis.Early in the morning, a tricycle driver assumes that he can get at least 600 pesos income (P) the whole day.You are a new hire at Laurel Woods Real Estate, which specializes in selling foreclosed homes via public auction. Your boss has asked you to use the following data (mortgage balance, monthly payments, payments made before default, and final auction price) on a random sample of recent sales to estimate what the actual auction price will be. Loan ($) Payments ($) Payments Made Auction ($) 85600 985.87 1 16900 115300 902.56 33 75800 103100 736.28 6 43900 84600 945.45 9 16600 97600 821.07 24 40700 104400 983.27 26 63100 113800 1075.54 19 72600 116400 1087.16 35 72300 100000 900.01 33 58100 92800 683.11 36 37100 105200 915.24 34 52600 105900 905.67 38 51900 94700 810.7 25 43200 105600 891.33 20 52600 104100 864.38 7 42700 85700 1074.73 30 22200 113600 871.61 24 77000 119400 1021.23 58 69000 90600 836.46 3 35600 104500 1056.37 22 63000 GIVEN - ALL CORRECT: Auction price =(118,929.46)+1.63 Loan +2.06 Monthly payment +50.34 Payments Made.…
- You are a new hire at Laurel Woods Real Estate, which specializes in selling foreclosed homes via public auction. Your boss has asked you to use the following data (mortgage balance, monthly payments, payments made before default, and final auction price) on a random sample of recent sales to estimate what the actual auction price will be. Loan ($) Payments ($) Payments Made Auction ($) 85600 985.87 1 16900 115300 902.56 33 75800 103100 736.28 6 43900 84600 945.45 9 16600 97600 821.07 24 40700 104400 983.27 26 63100 113800 1075.54 19 72600 116400 1087.16 35 72300 100000 900.01 33 58100 92800 683.11 36 37100 105200 915.24 34 52600 105900 905.67 38 51900 94700 810.7 25 43200 105600 891.33 20 52600 104100 864.38 7 42700 85700 1074.73 30 22200 113600 871.61 24 77000 119400 1021.23 58 69000 90600 836.46 3 35600 104500 1056.37 22 63000 GIVEN - ALL CORRECT: Auction price =(118,929.46)+1.63 Loan +2.06 Monthly payment +50.34 Payments Made.…Home insurance policies may cover jewelry for $1,000 and silverware for $2,500 unless these items are covered with additional insurance. If $3,300 worth of jewelry and $2,100 worth of silverware were stolen from a family, and the policy has a deductible of $1,000, what amount of the claim would not be covered by insurance?1. What data items do you need to be able to find duplicate payments? 2. Would the date of the duplicate payment usually be the same or different?
- 6. “If It Ain’t Broke” Orthopedics is leasing a facility in Los Angeles for $20,000 per month. The partners are deciding on whether to buy a property and relocate the clinic or to continue leasing the current facility for another year and then relocate the clinic. They recently saw an advertisement for a new medical complex in Glendale at a price of $2,800,000. The current interest rate for a 20-year loan is 7 percent per annum. They believe there is a 40 percent chance that this interest rate will fall to 5 percent per annum in a year’s time. They also believe that another facility they are interested in will still be available in a year at a discounted price of $2,500,000. The partners have to decide whether to buy the new facility now or in a year. Interest payments will be made on the loan at the end of each year. a. Develop a decision tree that will aid the owners in their leasing or purchasing decision. b. Fold back the tree and find the expected value. Please provide the…The sales commission of a pharmaceutical distribution company is structured such that its part-time sales representatives receive commissions of: 4.00% on the first $10,000 they sell, 6.00% on the next $10,000, 11.00% thereafter on all sales they make. Daniel, a new sales representative, made sales of $2,500 in his first month, $16,500 in his second month, and $37,000 in his third month. a. What was the commission in the first month? Round to the nearest cent b. What was the commission in the second month? Round to the nearest cent c. What was the commission in the third month? Round to the nearest cent d. What single commission rate would represent his total earnings throughout the first 3 months? Round to two decimal placesAn investor is to receive a 15-year $8,000 annuity, the first payment to be received today. At an 11% discount rate, this annuity's worth today is closest to: a. $55,855 b. $57,527 c. $63,855 d. $120,000