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- Use the basic formula for present value, along with the given discount rate, r, and the number of periods, n, to calculate the present value of $1 in teh case shown in the following table. Opportunity cost r: 7% Number of periods n: 17Assume that a bank has a total of $20million of small exposures of a certain type with one year probability of default at 5% and the recovery rate averages 30%. Estimate the 99% one-year credit VaR using Vasicek’s model if the copula correlation parameter is 0.3. What is the Credit VaR?Q:Compute the present value of each stream if the discount rate is 14 percent.
- Calculate the PV of the following payments if the discount rate is 10% $1,000,000.00 $1,100,000.00 $1,050,000.00 $1,110,000.00 $11,500,000.00What is PW?Calculate the sensitivity (in percent) on investment cost. No need to write the percent symbol.Calculate the sensitivity (in percent) on annual profit. No need to write the percent symbol.For the demand function = 75 −p/2, calculate the point price elasticity at ? = 50
- If the risk-free rate is 4.8 percent and the risk premium is 6.8 percent, what is the required return? (Round your answer to 1 decimal place.) Required Return: ___.__%Given the following credit term, 2/7, n/21, what is the effective annual equivalent percentage?The rate of return on T-bills is 3.25% and the expected return on the market is 9.50%. J&X, Inc. had a beta (b) of .78. What is the required return (r) for J&X?
- Given the table of values, solve for the Benefit Cost Ratio (round-off to 4 decimal places) at an interest rate of i=10% per annum. PW, $ AW, $ FW, $ First Cost 100,000 259,370 M & O Cost 61,446 10,000 159,374 Benefits 40,000 637,496 Disbenefits 30,723 5,000Your expectations from a one year investment in Wang Computers are as follows: Probability Rate of Return .15 -.10 .15 -.20 .35 .00 .25 .15 .10 .15 expected rate of return? standard deviation? coeefecient of variation on investment?What is the NPV using a 14 percent discount rate? What does this mean?
