Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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- Find the nominal annual rate of interest compounded quarterly that is equivalent to 4.8% compounded semi-annually. The nominal annually compounded rate of interest is %. (Round the final answer to four decimal places as needed. Round all intermediate values to six decimal places as needed.)arrow_forwardThe n-year spot rate of interest per annum, in, is given by: b in = a(1.1)" +- n for n = 1, 2 and 3 and where a and b are constants. With time measured in years from the present, the implied one-year forward rates applicable at time 0 and at time 1 are 7.3% and 6.8%, respectively. Showing all of your workout, calculate to 5 decimal places the following: (i) the values of a and b; (ii) the implied two-year forward rate applicable at time 1; (iii) the price per £1 nominal at time t = 0 of a bond which pays annual coupons of 7% in arrears and is redeemed at 95% after 3 years.arrow_forwardHh3.arrow_forward
- Inland development projects, why do lenders insist on loan repayment rates in excess of the sales revenue? What is the release price?arrow_forwardGiven an Annual Percentage Rate (APR) of 0.072 with quarterly compounding, the equivalent interest rate for effective annual rate is ____%. Instruction: Round to three decimal places.arrow_forwardIf i= 14.8% per year, compounded monthly, What is the effective interest rate per semiannual? (ABET, S01) Select one: Oa. 15.85% Ob. 7.63% O c. 7.4% O d. 1.23% Oe. 7.91%arrow_forward
- Complete the following using compound future value. (Use the Table 12.1 provided.) Note: Round your answers to the nearest cent. Time: 12 years Principal: $17,300 Rate: 3% Compounded: Annually Amount: Interest: Future value interest factor of $1 per period at i% for n periods, FVIF(i,n). Period 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5% 10.0% 1 1.0050 1.0100 1.0150 1.0200 1.0250 1.0300 1.0350 1.0400 1.0450 1.0500 1.0550 1.0600 1.0650 1.0700 1.0750 1.0800 1.0850 1.0900 1.0950 1.1000 2 1.0100 1.0201 1.0302 1.0404 1.0506 1.0609 1.0712 1.0816 1.0920 1.1025 1.1130 1.1236 1.1342 1.1449 1.1556 1.1664 1.1772 1.1881 1.1990 1.2100 3 1.0151 1.0303 1.0457 1.0612 1.0769 1.0927 1.1087 1.1249 1.1412 1.1576 1.1742 1.1910 1.2079 1.2250 1.2423 1.25.97 1.2773 1.2950 1.3129 1.3310 4 1.0202 1.0406 1.0614 1.0824 1.1038 1.1255 1.1475 1.1699 1.1925 1.2155 1.2388 1.2625 1.2865 1.3108 1.3355 1.3605 1.3859 1.4116 1.4377 1.4641 5 1.0253…arrow_forwardUsing Table 11-1, calculate the compound amount and compound interest (in $) for the investment. (Round your answers to the nearest cent.) Time Nominal Interest Compound Compound Principal Period (years) Rate (%) Compounded Amount Interest $8,000 4 12 annually Ex Enter a number.arrow_forwardanswer please lol!arrow_forward
- If the interest rate is stated as 2.2% per 6 months compounded continuously, the effective annual interest rate is closest to: Select one: а. 3.4%. b. 2.22%. С. 4.5%. d. 3.45%.arrow_forward10. Find the per period rate and the APR (the stated interest rate) for each case: (Round Per period rate to 3 decimal places.) Effective Annual Intrest Rate Compounding Period Per Period Rate APR 10.00% 1 month 6.09% 6 months 8.24% 3 monthsarrow_forwardSolve for the unknown interest rate in each of the following (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.):arrow_forward
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