If the interest rate is 10%, what is the present value of a security that pays you K1,100 next year, K1,210 the year after, and K1,331 the year after that?

Q: value of the FRA

A: FRA stands for Forward rate agreement refers to the interest rate decided between two parties that…

Q: The owner of a downtown parking lot has employed a civil engineering consulting firm to advise him…

A: Present value of annuity Annuity is a series of equal amount payment at equal interval for a…

Q: Maria loaned an amount of 100,000 in payable in 15 equals installments. The first payment was made a…

A: Loan amount (L) = 100000 Number of quarterly payments (n) = 15 First payment after 1 year (4…

Q: Which of the following statements concerning the Efficient Market Hypothesis is correct? Select…

A: Share prices, according to the efficient market hypothesis represents all the information available…

Q: You are planning to accumulate P2.5M in your personal savings account by the time you retires at 60.…

A: Each year deposit earn the some portion of interest and it is compounded annually.

Q: Which one of the following statements is correct with respect to policy retention? Group of answer…

A: Insurance is a contract represented by a policy that an individual or group receives financial…

Q: Question 20 An analyst estimates that project C's expected rate of returm is 10%, your required rate…

A: To analyse a project, the expected rate of return and required rate of return are compared. if the…

Q: C. Paxton Company provided the following income statement for last year: P 87,021,000 (62,138,249) P…

A: Times interest earned ratio shows how many times a company can cover its interest expense with its…

Q: Take me to the text The following information pertains to Bush Company for the fiscal year 2020.…

A: Solution :  Cash flow from investing activities include that activity of cash generated or spent…

Q: The expected value of a normal distribution of prices for a stock is $71. If you are 99 percent sure…

A: The normal distribution is assumed than it follows the probability of stock prices can be found from…

Q: A loan of $6000 is being repaid with quarterly installments of P at the end of each quarter for 5…

A: Given, Loan amount is $6000 Term of loan is 5 years rate is 12% Payment is made quarterly.

Q: Karen obtained a $25.000 loan at 4.5% compounded semiannually. a-1. What monthly payment will repay…

A: The monthly amount will be found using excel’s PMT function. It is the minimum amount that must be…

Q: AS120,000 bond bearing interest at65% payable semiannualy is bought si years before maturity to yeld…

A: Given, The face value of bond is $120,000 Interest payment is 6.50% semiannually YTM is 6%…

Q: You are looking to buy a car and you have been offered a loan with an APR of 6.4%, compounded…

A: The true monthly rate of interest is simply stated as the nominal interest rate per compounding…

Q: P= P1,000 r= 5% t=5 years m=2 What is the present value of an annuity due?

A: Payment (P) = P 1000 r = 5%, m = 2, hence semiannual compounding Effective interest rate (r) = (1 +…

Q: What are Critical success factors of the investment sector or banking sector?

A: Banking is the ultimate expression of using other people's money to generate profit. Banks use…

Q: find the size of each 4 payments made at the end of each year into a 9% rate sinking fund which…

A: Future value (FV) = 63000 Interest rate (r) = 9% Number of annual payments (n) = 4

Q: •Assume that you have saved money for a down payment on your dream house, but you still need to…

A: a) Given that: Loan Amount=Php500000= PV of annuity Year of mortgage=5 Year= 60 months Annual Rate…

Q: The Ewing Distribution Company is planning a $100 million expansion of its chain of discount service…

A: Given, Amount required for expansion is $100 million

Q: A loan for RM6,500 with a simple interest rate of 18% was made on June 15 and due on September 15.…

A: Loan amount (P) = RM6500 Interest rate (r) = 18% Period from June 15 to September 15 (d) = 92 days

Q: Determine which one of these three portfolios dominates another. Name the dominated portfolio and…

A: Solution : i) As compared to return under three investment which was under Portfolio option Blue,…

Q: the present value will be infınite the present value will be zero O the present value will be…

A: Step 1 You could not determine the stock value if the company's growth rate exceeds the required…

Q: Evan and Emmanuel want to buy a $250,000 home. They plan to pay 15% as a down payment, and take out…

A: Cost of House is $250,000 Down payment is 15% Term of loan is 30 years Interest rate is 4.9% To…

Q: Ratios For Amazon.com, Inc. (AMZN)…

A: Ratio analysis includes the computation of ratios using elements of financial statements by keeping…

Q: no preferred stock. The yield to at the company's WACCs 12.60% What is Pearson's cost of common…

A: Weighted average cost of capital is the cost o capital considering the weight of the different…

Q: You put $6,500 into a Roth IRA and invest everything in a corporate bond fund.  The fund has an…

A: An investment is an asset or item purchased with the intention of generating income or appreciation.…

Q: Assume you graduate from college with $30,000 in student loans. If your interest rate is fixed at…

A: The monthly payment amount can be calculated with the help of present value of annuity function

Q: SHOW SOLUTION 3.The maintenance cost of a new equipment is projected to start at the end of the 2nd…

A: The annual equivalent maintenance cost is the equal amount of cost incurred on equipment during the…

Q: Crane Corp. management is considering purchasing a machine that will cost $117,250 and will be…

A: Working Note #1 Calculation of depreciation: Cost of machine = $117,250 Useful life = 5 years…

Q: A bond has an interest rate of 15% for the next 5 years The current cost and par value of the bond…

A: Net present value is the sum of the present values of net of all future cash outflows and inflows…

Q: Your division is considering a project with the following net cash flows (in millions): Period 1 2…

A: Here, WACC = 0.11 To Find: NPV of Project A =?

Q: 27) You are pleased to see that you have been given a 4.48% raise this year.​ However, you read on…

A: The real purchasing power can be calculated after taking out the effect of inflation from the…

Q: Q7-8. Is it possible to convert a present value of an ordinary annuity table to the present value of…

A: Let r = Interest rate Periodic payment = P Duration = n

Q: 8. Scott took a short position for 500 ounces of July gold at $653.25 per ounce. He did not close…

A: Initial margin In order to trade in exchange, investors have to deposit the initial margin…

Q: 4. What is the equivalent amount today of an annual deposit of Php200000 for 15 years if money is…

A: Solution : Equivalent amount today of annual deposit means that amount which was represent the…

Q: 7) The market price of a bond is equal to: a) The present value of future dividends b) The present…

A: 1) Market price of the bond is the sum of  present value of Interest payment and Principal value of…

Q: Abby also has a $400/month car loan payment and a $150/month student loan payment. If her lender…

A: The portion of monthly income that goes into paying the loan installments is known debt-to-income…

Q: You have RM9,000 that you plan to invest in a compound interest bearing instrument. Your investment…

A: Compound interest means that interest is charged on the principal amount as well as the interest…

Q: Mill A Mill B Initial Cost $7,800 $14,400 $2,700 $1,200 $540 Salvage Value Annual Operating Cost…

A: it is given that : A: Initial cost - $7800 Salvage value- 0 Annual cost – 1745+960= 2705 Time – 12…

Q: The market compensates investors for accepting which type(s) of risk? O None of the listed…

A: Risk refers to the level of uncertainty in returns that an investor expects while making…

Q: Consider the following four debt securities, which are identical in every characteristic except as…

A: Bonds are the debt securities which are issued by the corporates or the government to raise the…

Q: Mr. Jhonny bought a car worth P900,000 last January 1, 2000, and intend to sell it for P300,000…

A: Annuity means a set of finite number of deposits/payments made at equal intervals of time for a…

Q: When you have a fixed investment horizon, it is important to maximize your earnings. You must…

A: Reinvestment risk refers to the possibility that an investor will not be able to reinvest the cash…

Q: If you wish to withdraw P20,000 after 5 years at the interest rate of 5% compounded annually, how…

A: Amount to withdraw (A) = P 20000 n = 5 years r = 5%

Q: A quoted rate of interest is a “nominal” rate because it includes inflation expectations. a) True…

A: Answer:-   True. The nominal interest rate comprises of the real interest rate and a premium for…

Q: What is the standard deviation of the following portfolio? |Weight Correlation(A,B) Growth Rate 3 .2…

A: Standard deviation of a portfolio = WA2σA2+WB2σB2+2*WA*WB*σA*σB*r Where, WA = Weight of stock AWB =…

Q: Mr. Hernandez wants to provide a series of 18 yearly allowance for his 1 yr old daughter starting at…

A: Period of first payment from now = 7 Years (i.e. 8-1 = 7 Years of age) Number of annual allowance =…

Q: the amount of the down payment?

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: ou purchase a house for $250,000 by getting a mortgage for $200,000 and paying a $50,000 down…

A: Loan amount (PV) = $200,000 Interest rate = 4% Monthly interest rate (r) = 4%/12 = 0.33333333333%…

Q: Q7-2. Will an investor earn more if interest is compounded semiannually or if the investment pays…

A: Time value of money (TVM) is used to measure the value of money at different point of time in the…