SmartExpert

(118)

$30/per page/Negotiable

About SmartExpert

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Accounting,Business & Finance See all
Accounting,Business & Finance,Economics,English,HR Management,Math Hide all
Teaching Since: Apr 2017
Last Sign in: 57 Weeks Ago, 3 Days Ago
Questions Answered: 7570
Tutorials Posted: 7352

Education

  • BS,MBA, PHD
    Adelphi University/Devry
    Apr-2000 - Mar-2005

Experience

  • HOD ,Professor
    Adelphi University
    Sep-2007 - Apr-2017

Category > Business & Finance Posted 17 Sep 2017 My Price 7.00

FINC 600 Assignment 1

Complete the following problems in either Microsoft Word or Excel. Your work must be organized. Highlight your final answer. Chapter 2: 2-9: a. The cost of a new automobile is $10,000. If the interest rate is 5%, how much would you have to set aside now to provide this sum in five years? b. You have to pay $12,000 a year in school fees at the end of each of the next six years. If the interest rate is 8%, how much do you need to set aside today to cover these bills? c. You have invested $60,476 at 8%. After paying the above school fees, how much would remain at the end of the six years? 2-11: You are quoted an interest rate of 6% on an investment of $10 million. What is the value of your investment after four years if interest is compounded: a. Annually? b. Monthly? or c. Continuously? 2-12: What is the PV of $100 received in: a. Year 10 (at a discount rate of 1%)? b. Year 10 (at a discount rate of 13%)? c. Year 15 (at a discount rate of 25%)? d. Each of years 1 through 3 (at a discount rate of 12%)? Chapter 3: 3-3: In February 2009 Treasury 6s of 2026 offered a semiannually compounded yield of 3.5965%. Recognizing that coupons are paid semiannually, calculate the bond’s price. 3-4: Here are the prices of three bonds with 10-year maturities: Bond Coupon % Price % 2 81.62 4 98.39 8 133.42 If coupons are paid annually, which bond offered the highest yield to maturity? Which had the lowest? Which bonds had the longest and shortest durations? 3-7: Look again at Table 3.4. Suppose that spot interest rates all change to 4%—a “flat” term structure of interest rates. a. What is the new yield to maturity for each bond in the table? b. Recalculate the price of bond A?         

Answers

SmartExpert
(118)
Status NEW Posted 17 Sep 2017 01:09 PM My Price 7.00

FIN-----------C 6-----------00 -----------Ass-----------ign-----------men-----------t 1-----------

Attachments

file 1505657125-FINC 600 Assignment 1.docx preview (538 words )
F-----------INC----------- 60-----------0 A-----------ssi-----------gnm-----------ent----------- 1 ----------- So-----------lut-----------ion-----------: ----------- P-----------art----------- 1 ----------- A-----------uto-----------mob-----------ile-----------  -----------  ----------- C-----------os -----------of -----------Aut-----------o m-----------obi-----------le -----------FV -----------$ 1-----------0,0-----------00.-----------00 -----------  ----------- In-----------ter-----------est----------- Ra-----------te -----------5% -----------  ----------- Ti-----------me -----------in -----------per-----------iod-----------s 5-----------  ----------- P-----------res-----------ent----------- Va-----------lue----------- re-----------qui-----------red----------- PV----------- $ -----------7,8-----------35.-----------26 -----------FV/-----------(1+-----------r)^-----------t -----------  -----------  -----------  -----------  ----------- P-----------art----------- 2 ----------- Sc-----------hoo-----------l f-----------ees-----------  -----------  ----------- A-----------mou-----------nt -----------req-----------uir-----------ed -----------eac-----------h y-----------ear----------- pm-----------t $----------- 12-----------,00-----------0.0-----------0 ----------- -----------Int-----------ere-----------st -----------Rat-----------e 8-----------% ----------- -----------Tim-----------e i-----------n p-----------eri-----------ods----------- 6 -----------  ----------- Pr-----------ese-----------nt -----------Val-----------ue -----------req-----------uir-----------ed -----------PV -----------$55-----------,47-----------4.5-----------6 U-----------sin-----------g P-----------V f-----------unc-----------tio-----------n i-----------n e-----------xce-----------l -----------  -----------  -----------  -----------  ----------- P-----------art----------- 3 ----------- Sc-----------hoo-----------l f-----------ees-----------  -----------  ----------- C-----------urr-----------ent-----------
Not Rated(0)