Problem 13-10 You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 6 percent Term to maturity: 17 years Sinking fund: 4 percent of outstanding bonds retired annually; the balance at maturity and Appendix D to answer the question. Use a minus sign to enter the loss amount, if any, as a negative value. Round your answer to the nearest dollar. $b. If you hold the bond 17 years, what do you receive at maturty? c. What is the bond's current yield as of right now? Round your answer to the nearest whole number.% d. Given your price in a, what is the yield at maturity? Round your answer to the nearest whole number. %e. What proportion of the total debt issue is retired by the sinking fund? Round your answer to the nearest whole number. % question. Round your answer to the nearest dollar. $ 0

B. At time 0, K is deposited into Fund X, which accumulates at a force of interest of t + 3 t² + 6t+9 8₁ At time m, 2K is deposited into Fund Y, which accumulates at an interest of 10.25%, convertible quarterly. At time n, where n > m, the accumulated value of each fund is 3K. Calculate m.

Problem 7-22 You buy a mutual fund for $1,000. It annually distributes $40 for ten years, after which you sell the shares for $950. What is the annualized return on your investment? Use Appendix Band Appendix D to answer the question. Round your answer to the nearest whole number. %

Choose the best answer Compute the future value in year 5 of a $2,000 deposit in year 1 and another $2,500 deposit at the end of year 3 using a 6% interest rate. a. $5,333.95 b. $5,653.99 c. $5,850.00 d. $6,022.02

Problem 3 (a) If Daniella opens a mutual fund account with a deposit of $15,000 and it promises to pay an annual interest rate of r%, compounded on a monthly basis. (i) Derive a function B, which shows the balance on Daniella's account the end of 6 years. (ii) Make a comparison of the rates of change in B with resect to the interest rate when r is 8% , 10% and 12%.

Assume that the fund is liquidated at the end of the fourth quarter, what are the arithmetic, time-weighted (geometric), and dollar-weighted average rates of return?   1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Assets Under Managment at start of quarter ($ milion) 10 12.5 21.25 9 Holding-period return (%) 15% 30% -20% 25% Total assets before net inflows 11.5 16.25 17 11.25 Net inflow ($ million) 1 5 -8 6 Assets under managment at end of quarter ($ million) 12.5 21.25 9 17.25

W Screenshot (126).png Chapter 26 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 2 3 4 1 64°F Internal rate of return method The internal rate of return method is used by Royston Construction Co. in analyzing a capital expenditure proposal that involves an investment of $17,946 and annual net cash flows of $6,000 for each of the 5 years of its useful life. 5 6 7 8 9 10 0.943 65°F Windy eBook 0.909 1.736 2.487 3.170 3.791 4.355 0.893 1.690 2.402 3.037 3.605 4.111 3.785 4.868 4.564 4.160 4.968 4.487 4.772 5.019 5.328 5.650 1.833 2.673 3.465 4.212 4.917 5.582 5.335 6.210 6.802 5.759 6.145 7.360 a. Determine a present value factor for an annuity of $1, which can be used in determining the internal rate of return. If required, round your answer to three decimal places. 0.870 1.626 2.283 2.855 ▬ ▬▬ ■ 3.353 0.833 1.528 2.106 Q Search 2 2.589 b. Using the factor determined in part (a) and the present value of an annuity of $1 table above, determine the…

6. Consider the following (incomplete) sinking fund schedule (table). Note that there is no payment at t = 2. You MUST show your work to answer each of the two parts of this problem. Time Interest Sinking Interest S.F. Bal. After Net in on Fund on Balance Years Loan Deposit $0 S.F. $0 Deposit on Loan $0 $0 $100 $2,000 1 $700 3 $795 $35.44 4. $0 (a) Find the net balance on loan at t = 3. (b) Find the sinking fund deposit at t= 4.

Question An amount of $14951 is deposited into a fund that earns a nominal annual rate of interest is 4.4% compounded quarterly. The fund will be used to make quarterly payments of $600 at the end of every 3 months for as long as possible. A smaller payment X is to be paid along the last regular payment to completely deplete the fund. Compute the amount of the payment X. Possible Answers A 168.12 B 165.23 с 123.45 Ꭰ 134.67 E 459.15

Question 1 Q1(a) Create simple examples to illustrate the following concepts. i. Time value of money ii. Effective interest Sinking Fund 111. iv. Amortized loan Q1(b) Assuming you will be able to deposit GHC6000 at the end of each of the next four years in a bank account paying 9% interest. You currently have GHC6000 in the account. How much will you have in four years? Q1(c) After carefully going over your budget, you have determined you can afford to pay GHC854 per month toward a new car. You call up your local bank and find out that the going rate is 1% per month for 48 months. How much can you borrow? Q1(d) Suppose, a business takes out a GHC7000, 7-year loan at 9%. If the loan agreement calls for the borrower to pay the interest on the loan balance each year and to reduce the loan balance each year by GHC 1000. How would the loan repayment be? Illustrate with the aid of a table.