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Q: Find the nominal rate which if compounded quarterly is equivalent to 6.5% compounded semi-annually.
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A: Answer- "Thank you for submitting the questions.But, we are authorized to solve one question at a…
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Q: What is the effective annual interest rate?
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Q: A bank offers 1.2% per month. What is the effective interest rate if compounded monthly?
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Q: What is the effective annual interest rate if the nominal interest rate is 6%, compounded monthly?
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- Would you expect capital deepening to result in diminished1etmns? Why or why not? Would you expect improvements in technology to result in diminished returns? Why or why not?1. What are the difference between Direct Method Cash flow withthat of indirect method cash flow, apply them in a given exampleThe Rosy company, is planning to start an egg packing factory in the country of Bevery. The initial investment for the egg packing factory is $5Million and it will generate net revenues for every year for the next 10 years starting as $1M in the first year, and increasing by $0.5Million every year (e.g, 1M, 1.5M, 2M, 2.5M...). Currently £1 is equal to $20. However, the $ is being devalued (losing value) against the £ by 12% every year (so next year £1 will be $22.4 ). If Rosy company has a MARR of 30% in Bevery, what is the PW of this egg packing factory in £?
- Economics In 54 months time you expect a cash flow of $3 million. Calculate it’s present value (PV) given the 54-month interest rate is currently 4%, with a volatility of 120 basis points (bps). Explain, using equations with properly-defined mathematical notation, how to map this cash flow to vertices at 4 years and 5 years, in such a way that the volatility of the present value of the mapped cash flow remains at 120 bps. Suppose the 4-year rate has a volatility of 110 bps and the 5-year rate has a volatility of 150 bps, and their correlation is 0.9. How much should be mapped to each vertex. Give your answer in PV terms and round your answers to whole $ values.No hand written solution and no img Consider the following information for a period of years: Arithmetic Mean Long-term government bonds 7.5% Long-term corporate bonds 7.6 Inflation 4.4 What is the real return on long-term government bonds? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. What is the real return on long-term corporate bonds? long term government bond: ? long term corporate bonds: ?Consider the results in Table 3. What is the predicted home size of a householdcomposed of 5 members, renting, and with annual net income equal to 37,150 euros?How does it differ from the predicted home size of a household composed of 1member, owning, and with annual net income equal to 37,150 euros?
- A company that produces video equipment, including videocameras and televisions, is attempting to forecast what newproducts and product innovations might be technologicallyfeasible and that customers might demand 10 years into thefuture. Speculate on what type of qualitative methods itmight use to develop this type of forecast.Suppose an individual places his money in a bank for a year then invests in apples for a year. Suppose the bank has an annual rate of 5%, compounded continuously. During the year in which the individual's money is in the bank, the apple grows in price from $1 to $1.25. Suppose its return doubles in the second year, when the individual's money is invested in the apples. He starts the first investment period with $100. How much money does he have after two years following the investment plan given above? Group of answer choices $105.1 $124.7 $154.4 $157.7hello i just wanna know if my answer to this question is correct or wrong: Consider five years of monthly pro fit for a company C) Discuss whether a simple exponential smoothing model works well with this data or not. Month Sales Jan-16 747 Feb-16 697 Mar-16 1014 Apr-16 1126 May-16 1105 Jun-16 1450 Jul-16 1639 Aug-16 1711 Sep-16 1307 Oct-16 1223 Nov-16 975 Dec-16 953 Jan-17 1024 Feb-17 928 Mar-17 1442 Apr-17 1371 May-17 1536 Jun-17 2004 Jul-17 1854 Aug-17 1951 Sep-17 1516 Oct-17 1642 Nov-17 1166 Dec-17 1106 Jan-18 1189 Feb-18 1209 Mar-18 1754 Apr-18 1843 May-18 1769 Jun-18 2207 Jul-18 2471 Aug-18 2288 Sep-18 1867 Oct-18 1980 Nov-18 1418 Dec-18 1333 Jan-19 1333 Feb-19 1370 Mar-19 2142 Apr-19 2138 May-19 2078 Jun-19 2960 Jul-19 2616 Aug-19 2861 Sep-19 2237 Oct-19 2225 Nov-19 1590 Dec-19 1659 Jan-20 1613 Feb-20 1605 Mar-20 2349 Apr-20 2468 May-20 2532 Jun-20 3127 Jul-20 3288 Aug-20 3285 Sep-20 2485 Oct-20 2723 Nov-20 1835 Dec-20 1894 here is my answer: Assessing the Applicability of…
- A corporate treasurer tells you that he has just negotiated a five-year loan at a competitivefixed rate of interest of 5.2%. The treasurer explains that he achieved the 5.2% rate byborrowing at six-month LIBOR plus 150 basis points and swapping LIBOR for 3.7%. He goeson to say that this was possible because his company has a comparative advantage in thefloating-rate market. What has the treasurer overlooked? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Assume that the real interest rate is 8%. If a firm can invest in a piece of machinery that costs $8,000 today and will generate a profit stream of $3,000 at the end of each year for the next 3 years, what should the firm do? A. Invest in the machinery. B. Do not invest in the machinery.a) What is the NPV of each project? Which projects should Xia undertake, and how much cash should it retain? b) What is the total value of Xia’s assets today? c) What cash flows will the investors in Xia receive? Based on these cash flows, what is the value of Xia today? d) Suppose Xia pays any unused cash to investors today, rather than investing it. What are the total cash flows to the investors in this case? What is the value of Xia now?
