A three-month bill that was issued on an annually compounded yield of 5%. Suppose that one month has passed and the investment still offers the same annually compounded return, answer the following: a. What is the percentage discount? b. Calculate the Monthly return. c. Calculate the present annual yield. Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. a. Discount b. Monthly return c. Annual yield % % %

Suppose that a three-year FRN pays a six-month Libor plus 4% semi-annually. Currently, the six-month Libor is 2%. The price of the floater is 90 per 100 of par value. What is the discount margin?

Suppose you make equal quarterly deposits of $2,500 into a fund that pays interest at a rate of 5% compounded monthly. Find the balance at the end of year 3. Hint: You will need an effective interest rate in your calculations. As a proportion, round this value to 4 places after the decimal when you use this in subsequent calculations. Note: Note: When entering your answer, do not use any dollar symbols or any other units. Enter only the value rounded to the nearest integer (nearest dollar). Also, for longer values, do not use any commas.

An estimate has the following cost and revenue cash flows. The cash flows are assumed to occur at the end of the year. (a) If interest is 10%, find the net present worth, net future worth, and net annual equivalentworth.(b) Find the rate of return. (Hint: The guessing range is 25 to 30%).(c) Present a summary of the four methods Year Cost Revenue 0 $800 $0 1 - $450 2 - $425 3 - $400

1.An investment that has a maturity value of $3,400 and is discounted 5 years and 6 months before maturity at 4.80% compounded semi-annually. a. Calculate the discounted value of the investment. $0.00 Round to the nearest cent b. Calculate the amount by which the money is discounted.

92. Subject :- Finance

For each of the following cases, indicate (a) what interest rate columns and (b) what number of periods you would refer to in looking up the present value factor. (1) In Table 3 (present value of 1): Number of Discounts Annual Rate Years Involved per Year Case A 9% 7 Case B 10% 8 Annually Semiannually Case C 8% 8 Semiannually Case A Case B Case C (a) (b) % periods % periods % periods (2) In Table 4 (present value of an annuity of 1): Annual Rate Number of Years Involved Number of Payments Involved Frequency of Payments Case A 8% 15 15 Annually Case B 8% 4 4 Annually Case C 12% 8 16 Semiannually (a) Case A % Case B % (b) periods periods Case C % periods

1An annual percentage rate (APR) is determined by annualizing the rate using compound interest. Select one: True False   2The more frequent the compounding, the higher the future value, other things equal. Select one: True False   3Which statement is NOT true?  a. Figure A correctly displays the relation between FVs of $1 investment at the interest rates 12.7% and 9.8%. b. Investment of $1 needs more than 7 years to double its value at the rate 9.8%, while only requiring less than 6 yeas to double at 12.7%. c. Figure B correctly displays the relation between PVs of $3 future value at the interest rates 12.7% and 9.8%. d. A discount factor for 5 years at 12.7% is lower than the discount factor for 5 years at 9.8%.   4After reading the fine print in your credit card agreement, you find that the "low" interest rate is actually an 17.05% APR, or 1.4208% per month. What is the effective annual rate? a. 18.45% b. 19.41% c. 18.82% d. 19.56%   5A zero-coupon bond is a bond that pay no…