You want to invest $100 in a project whose cash flows have a duration of 4 years. You invest $10 of your own money and you borrow the rest by issuing 2-year notes with duration of 1.7 years and 7-year notes with duration of 6 years. Each note has a face value of $1. The unit price of each 7-year note is $1.20. How many 7-year notes do you issue? Round to the nearest integer. Question 20 options: 20 45 60 25 55 40 35 50 30
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- A commercial bank is willing to make you a loan of P10,000. The bank wants a 12 percent interest rate and requires five equal annual payments to repay both interest and principal. What will be the dollar amount of the annual payment?Suppose you want to borrow $90,000 and you find a bank offering a 20-year loan with an APR of 5%. a. Find your regular payments if you pay n = 1, 12, 26, 52 times a year. b. Compute the total payout for each of the loans in part (a). c. Compare the total payouts computed in part (b). a. The payment for n = 1 would be $ The payment for n = 12 would be $ The payment for n = 26 would be $ The payment for n= 52 would be $ (Do not round until the final answer. Then round to the nearest cent as needed.)You plan to invest $10,000 for 180 days. Your bank offers a rate of 2.60% on 90-day GICS and 2.85% on 180-day GICS. How much more interest will you earn if you purchase a single 180-day GIC instead of two consecutive 90-day GICS? Remember that the interest earned from the first 90-day GIC will be invested in the second 90-day GIC along with the principal. Express your answer to 2 decimal places but do not include the $ sign. Your Answer: Answer
- You want to invest $100 in a project whose cash flows have a duration of 4 years. You invest $10 of your own money and you borrow the rest by issuing 2-year notes with duration of 1.25 years and 7-year notes with duration of 6.5 years. Each note has a face value of $1. The unit price of each 7-year note is $1.20. How many 7-year notes do you issue? Round to the nearest integer.Assume you borrow $10,000 today and promise to repay the loan in two payments, one in year 2 and the other in year 4, with the one in year 4 being only half as large as the one in year 2. At an interest rate of 10% per year, the size of the payment in year 4 will be closest to:a. $4280b. $3975c. $3850d. $23354. On 1/1/21 we sell equipment and accept a 3-year note receivable for $36,500. The market value is $36,500. Payments of $13,655 include both principal and interest and are to be made annually starting on 1/1/22. The present value of the payments is $36,500. The bank would require the purchaser to pay interest of 6% in order to borrow from them. The equipment cost us $90,000 and had a book value of $40,000. Note: Be sure to show the date of each journal entry. The 'right' journal entry on the 'wrong' date is wrong. a. Prepare an amortization table b. Prepare the journal entry for 1/1/21 c. Prepare the journal entry for 12/31/21 d. Prepare the journal entry for 1/1/22 Amortization table: Journal entries: Debits Credits 1/1/21 12/31/21 1/1/22
- A bank is offering a special deal. If you invest X now, the bank will give you 15,000 at time 7; 14,000 at time 8; 13,000 at time 9; and so on with the last payment being at time 14. Using an annual effective interest rate of 8%, determine X.Q4. A local bank advertises the following deal: "Pay us $100 at the end of each year for 10 yearsand then we will pay you (or your beneficiaries) $100 at the end of each year forever."A. Calculate the present value of your payments to the bank if the interest rate is 8.25%.B. What is the present value of a $100 perpetuity deferred for 10 years if the interest rate is8.25%?C. Is this a good deal?Suppose Capitol Federal Bancorp offers a certificate of deposit that pays $10,000 in five years for exchange for $8,000 today. What interest rate is Capitol Federal Bancorp offering? Suppose Bank One offers a certificate of deposit that pays $5,000 in four years for exchange for $4,000 today. What interest rate is Bank One offering? How many years will take $10,000 to grow to $20,000 if bank offered rate is 10%? How many years will take $25,000 to grow to $120,000 if bank offered rate is 18%? Suppose you save $4,000 per year at the end of each year for 3 years and earn 5% interest per year. How much will you have at the end of 3 years?
- Suppose you have the following three student loans: $11,000 with an APR of 8.5% for 12 years, $17,000 with an APR of 9% for 17 years, and $13,500 with an APR of 10% for 7 years. a. Calculate the monthly payment for each loan individually. b. Calculate the total you'll pay in payments during the life of all three loans. c. A bank offers to consolidate your three loans into a single loan with an APR of 9% and a loan term of 17 years. What will your monthly payments be in that case? What will your total payments be over the 17 years?Suppose that you obtain a 100.000 TL loan from a bank. The maturity is 10 years and the annual interest rate is 10%. You will pay monthly installments. However, according to the loan agreement you will make no payments for the first three years. What would be the monthly payment amount? 830,06 TL 660,75 TL O 1.104,81 TL 879,46 TL O Diğer: What would be the annual interest rate for a 5.000.000 TL bank loan that requires 125.000 TL of total interest payment for a period of 4 months? O 7% 7,5% 8% 8,5% O Diğer:Assume you borrow $10,000 today and promise to repay the loan in two payments, one in year 2 and the other in year 4, with the one in year 4 being only half as large as the one in year 2. At an interest rate of 10% per year, the size of the payment in year 4 is closest to: (a) $4280 (b) $3975 (c) $3850 (d) $3690