a. $1,832.61 b. $1,829.08 c. $1,840.45 d. Other 6. An annuity will pay eight annual payments of $100, with the first payment to be received one year from now. If the interest rate is 12% per year, what is the present value of this annuity?
Explain the difference in these two readings. 8. In the legend beneath Figure 2, the authors give an equation indicating that diastolic blood pressure is DBP = 25.8 + 0.13x. If the value of x is postnatal age of 30 hours, what is the value for Yˆ for neonates ≤ 1,000 grams? Show your calculations.
years. | | The step-by-step calculation is: P | = | S(1 + rt)-1 | | | = | 400,000(1 + 0.0892 x 0.24657534...)-1 | | | = | 400,000 x 0.97847883... | | | = | $391,391.53 | Rounded as last step | b)You are correct. When the first bill matures at time 90 days, the investor purchases a second bill. We must find the purchase price of the second bill. This can be displayed on a time line: | | | | | $P | $400,000 | | | | | | 0 | 90 | 180 | 270 | | | | | | | | | P | = | price | = | unknown | | S | = | Maturity value | = | $400,000 | | r | = | Simple interest rate (decimal) | = | 9.16 | 100 | | = | 0.0916 | | t | = | Time period (years) | = | 90 | 365 | | = | 0.24657534... years.
Bond value= C*[1-1(1+r)^t]/r + F/(1+r)^t = 70*[1-1(1+0.09)^8]/0.09 + 1000/(1+0.09)^8 = 889.30 Problem # 13 Using Treasury quotes: locate the treasury issue in figure 6.3 maturing in June 2023. Is this note or a bond? What is coupon rate? What is its bid price? What was the previous day’s asked price?
MGT 547 Fixed Income Security Analysis Professor Hongjun Yan YALE SCHOOL OF MANAGEMENT Solutions to Problem Set 1: Zeroes, Coupon Bonds, Yield, Forwards 1) $100 par of a 0.5-year 8%-coupon bond has a price of $101. $100 par of a 1-year 10%-coupon bond has a price of $104. a) What is the price of $1 par of a 0.5-year zero? 104 d0.5 = 101 ⇒ d0.5 = 101/104 = 0.9711538 b) What is the price of $1 par of a 1-year zero? 5d0.5 + 105d1 = 104 ⇒ d1 = (104 - 5d0.5)/105 = (104-5×0.9711538)/105 = 0.94423 c) Suppose $100 of a 1-year 6%-coupon bond has a price of $99.
The loan is unsecured on the grounds that it depends on your guarantee to reimburse the obligation. In an unsecured loan, the bank is not given any rights to seize or sell a particular resource. On the off chance that you default on the loan, the moneylender might try obligation gathering endeavors however are not managed the privilege to recover any of your property. The most widely recognized sort of unsecured loan is a Visa. Defaulting on a charge card might prompt gathering endeavors, yet lenders can't take your resources for pay for the obligation.
This equals $57.24 the final price after the 6% tax and the 20% discount. In order to calculate the discount first, I: Multiplied $67.50 x $.20. This equals $13.50 (the discount total). Next, I calculated $67.50 - $13.50. This equals $54.00.
ALTERNATIVE PROBLEMS AND SOLUTIONS ALTERNATIVE PROBLEMS 11- 1A. (Individual or Component Costs of Capital) Compute the cost for the following sources of Financing: a. A bond that has a $1,000 par value (face value) and a contract or coupon interior rate of 12%. A new issue would have a flotation cost of 6% of the $1,125 market value. The bonds mature in 10 years.
Assets that are ready for their intended use or sale when acquired are also not qualifying assets. Borrowing costs may include: i. Interest expense calculated using the effective interest rate method as described in MFRS 139 Financial Instruments: Recognition and Measurement, ii. Finance Charges in respect of finance leases recognized in accordance with MFRS 117 Leases, and iii. Exchange differences arising from foreign currency borrowings to the extent that they are regarded as an adjustment to interest cost.
A company issued a 30-year, $1,000 par value bond that has 10.85% coupon rate. Coupons are paid out semi-annually and the relevant interest rate is 9% compounded semiannually. a. (3 points) What was the value of this bond when it was issued? PMT = (.1085/2)*1000=54.25 N = 60 R = 0.09/2=0.045 (or 4.5 for calculator purposes) FV = 1000 PV =?