What compound interest rate j,, is equivalent over 4-year period to a simple interest rate of 2.24 % the first year followed by a simple discount rate of 7.41 % for the next 3 years ? Answer: 0.0573
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- Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?Suppose that the 9-month and 12-month LIBOR rates are 4% and 4.2%, respectively. What is the value of an FRA where 5% is received and LIBOR is paid on £1 million for the quarterly period? All rates are quarterly compounded and expressed as per annum. Assume that LIBOR is used as the risk-free discount rate. Select one: a. £478.115 b. £422.870 c. £479.062 d. £426.132What is the present value of $ 1, 552.90 due in 10 years at (1) a 12 percent discount rate and (2) a 6 percent rate? PV - Different Interest Rates
- The effective rate of interestis 3.25% per annum. Calculateto 6 sf. (a)The equivalent rate of discount. (b)The equivalent rate of interest calculated monthly (c)The equivalent rate of discountcalculated half yearly. (d)The equivalent force of interest. (e)The present value of £1000 payable in three and a half years. Does it matter which of the above rates we use to calculate this value?1. Determine the discount rate assuming the PV of $1080 at the end of 1-year is $980? 2. $9,800 is deposited for 10 years at 6% compounded annually, determine the FV? 3. What will be the present value, if $6,800 is discounted back 4 years at an interest rate of 4% compounded semi-annuallyThe discount factor corresponding to a 3-year continuously compounded interest rate is 0.765667. What is the corresponding continuously compounded interest rate? What is the corresponding quarterly compounded interest rate expressed at an annual rate?
- if the simple interest discount rate is 9.681% , what is the future value of 45,907 after 9 years and 10 monthsWhat's the present value of $1,515 discounted back 5 years if the appropriate interest rate is 6.6%, compounded monthly? Group of answer choices $1,090 $979 $1,033 $1,132 $928Consider this 5-year CDS. Assume payments are made annually in arrears. Assume that default, if it happens, always happens exactly halfway through a year. Assume that the expected recovery rate is 42%. Assume that the Treasury-Spot curve is flat at 3% with continuous compounding. The Hazard rate for the reference entity is 22.35% each year. Assume Notional Principal = $102,000,000. What is the present value of the expected premium payment in year 4 expressed in terms of s?
- If the discount rate is 19%, what is the present value of 3500 USD received at the end of each year for 23 years? a) 12450.5 b) 10000.5 c) 17500 d) 25000 e) 18084.5 ================= What is the market value of Beril Gıda A.Ş.'s bond with a nominal value of USD 12,000, maturity of 5 years, with an annual interest payment of 25%, and the desired return rate of 24%? a) 10250 b) 12327 c) 5427 d) 20000 e) 17500 ================== 12000 USD over the 12% interest deposited in the bank at the end of each year, how many USD will it reach at the end of the 15th year? a) 234356.4 b) 375000 c) 634356.5 d) 447356.4 e) 250225.5What is the present value of a 3-year annutiy of $220 if the discount rate is 6%.What's the present value of $12,000 discounted 5 years if the appropriate interest rate is 4.5%, compounded semiannually? $7,205 $9,606 $9,702 $9,030 $10,736