Construct a spreadsheet to convert a nominal interest rate compounded m times per year i(m) and convert it to an effective rate jn per 1/n of a year. On the same spreadsheet, also start with an effective rate jm per 1/m of a year and convert it to a nominal rate i(n) compounded n times per year. Use your spreadsheet to solve the following two problems: Given the nominal rate i(12) = 5.700%, find the equivalent effective semi-annual rate. Given the effective semi-annual rate j2 = 2.884%, find the equivalent nominal rate i(12),

Construct a spreadsheet to convert a nominal interest rate compounded m times per year i(m) and convert it to an effective rate jn per 1/n of a year. On the same spreadsheet, also start with an effective rate jm per 1/m of a year and convert it to a nominal rate i(n) compounded n times per year. Use your spreadsheet to solve the following two problems: Given the nominal rate i(12) = 5.700%, find the equivalent effective semi-annual rate. Given the effective semi-annual rate j2 = 2.884%, find the equivalent nominal rate i(12),

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Create the spreadsheet models shown in below images and answer the following questions. a. What is the effect of a change in the interest rate from 8% to 10% in the spreadsheet model shown in Figure A? b. For the original model in Figure A, what interest rate is required to decrease the monthly payments by 20%? What change in the loan amount would have the same effect? c. In the spreadsheet shown in Figure B, what is the effect of a prepayment of $200 per month? What prepayment would be necessary to pay off the loan in 25 years instead of 30 years?
Interest rates or discount rates. Fill in the interest rates for the following table using one of the three methods below: a. Use the interest rate formula, r=FVPV1n−1. b. Use the TVM keys from a calculator. c. Use the TVM function in a spreadsheet. Present Value Future Value Number of Periods Interest Rate $ 493.61 $ 1,902.61 20 ? $17,077.77 $228,416.84 32 ? $34,251.51 $ 63,755.61 24 ? $26,813.61 $212,279.67 10 ? Present Value Future Value Number of Periods Interest Rate $ 493.61 $ 1,902.61 20 nothing% (Round to two decimal places.) $17,077.77 $228,416.84 32 nothing% (Round to two decimal places.) $34,251.51 $ 63,755.61 24 nothing% (Round to two decimal places.) $26,813.61 $212,279.67 10 nothing% (Round to two decimal places.)
Waiting periods. Fill in the number of periods for the following table,, using one of the three methods below: In (FV/PV) In (1 + r) a. Use the waiting period formula, n = b. Use the TVM keys from a calculator. c. Use the TVM function in a spreadsheet. Present Value 760.13 Future Value $ 1,585.01 Interest Rate 3% Number of Periods years (Round to the nearest whole number.)
Interest rates or discount rates. Fill in the interest rates for the following table, , using one of the three methods below: FV a. Use the interest rate formula, r= PV - 1. b. Use the TVM keys from a calculator. c. Use the TVM function in a spreadsheet. Present Value Future Value Number of Periods Interest Rate 529.63 5 1,884.87 20 6.55 % (Round to two decimal places.) $17 207.92 $223,893.69 40 % (Round to two decimal places.)
Please answer quickly and correctly Find the real interest rate (%, to the nearest hundredth) for the problem in the picture.
An annuity pays $200 at the end of each period for 10 periods. Set up the CFs in an Excel spreadsheet. The current value of this stream of CFs is $1,544. What is the implied discount rate? Solve the problem using the following approaches: a. Use trial and error or Goal Seek in Excel (tab Data/What-if-Analysis). b. Use the excel built-in function RATE.
Interest rates or discount rates. Fill in the interest rates for the following table, , using one of the three methods below: FV -1. a. Use the interest rate formula, r= PV b. Use the TVM keys from a calculator. c. Use the TVM function in a spreadsheet. Present Value Future Value Number of Periods Inforost Rate S 529 63 $ 1,884 87 20 % (Round to two decimal places.)
Using a spreadsheet generate your own set of Discount and AnnuityTables for, say, all discount rates between 1% and 20% (at 1 percentagepoint intervals) and for time periods 1 to 30 (at one time periodintervals), as well as time periods 50 and 100. You should generate thesetables by inserting the numbers for the time periods in the first columnof each row and the discount rates in the first row of each column, andthen inserting the appropriate formula into one cell of the table – year 1at 1% - and then copying it to all other cells in the matrix. (Hint: Do notforget to anchor the references to periods and discount rates using the“$” symbol.)Answer: Write the discount formula into spreadsheet as shown below and then copyacross 20 columns (headed 1% through 20%) and down 50 rows (headed 1 to 50).
Future values. Fill in the future values for the following table, using one of the three methods below a. Use the future value formula, FV= PVx(1+ b. Use the TVM keys from a calculator c. Use the TVM function in a spreadsheet Present Value $ 222.00 Interest Rate Number of Periods Future Value 3% $5.39 (Round to the nearest cent)
.Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. Round your answers to the nearest cent. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.) $800 per year for 10 years at 14%.$   $400 per year for 5 years at 7%.$   $800 per year for 5 years at 0%.$   Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are…
Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent. $200 per year for 10 years at 8%. $   $100 per year for 5 years at 4%. $   $200 per year for 5 years at 0%. $   Now rework parts a, b, and c assuming that payments are made…
Find the future value of the following annuities. The first payment in these annuities is made at the end of Year 1, so they are ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press FV, and find the FV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent. $800 per year for 10 years at 14%. $   $400 per year for 5 years at 7%. $   $800 per year for 5 years at 0%. $   Now rework parts a, b, and c assuming that payments are made…

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS