3 -2,000 -4,000|-6,000 | 10,000 Year 1 2 4 5 Cash Flow, S P -0 OP= 10,000(P/F, i%, 5) - 2,000(P/G, i%, 5) OP= 10,000- 1,000(P/G, i%, 5) (F/P, i%, 5) OP= 10,000(P/F, i%, 5) -2,000(P/G, i%, 5) OP= -10,000(P/F, 1%, 5) + 2,000(P/G, i%, 4)

Define each of the following terms:l. Interest rate risk; maturity risk premium (MRP); reinvestment rate risk

Assume that the variables I, N, and PV represent the interest rate, investment or deposit period, and present value of the amount deposited or invested, respectively. Which equation best represents the calculation of a future value (FV) using: Compound interest? O FV = PV / (1+1)N O FV = PV + (PV XIX N) O FV = PV x (1 + I)N Simple interest? OFV = PV + (PV XIX N) O FV = PV XIX N O FV = PV/(PV XIX N)

explain the application of annuities with discount rates (usinf formulas)

By which symbol is the break-even interest rate denoted?

Describe the methods of calculating interest?

define collateral. Give an example

How is NPW used as a Function of Interest Rate?