XYZ funds purchased a bank bill (face value=1 million) on 10th June 2020. The bill will mature in 60 days and the yield is 6.95%. After holding the bill for 40 days, the funds sold the bill at a yield of 6.5%.   a) Calculate the profit through buy and sell of this bank bill. b) Work out the simple annual interest rate and effective annual interest rate earned by XYZ.

You intend to save for retirement over the upcoming 30 years by allocating R850 monthly to a stock account and R250 monthly to a bond account. The expected return for the stock account is 11%, while the bond account is anticipated to yield 6%. Upon retirement, you plan to merge your funds into an account with a 5% return. All interest rates are Annual Percentage Rates (APRs) compounded monthly. What would be the monthly withdrawal amount from your account over a 25-year period post - retirement?

A 30 year, monthly payment ARM has the following characteristics: loan amount = $135,000, index value = 5.00%, margin = 2.50, discount points = 2, teaser rate = 6%. The payment for year one is: d $925.06  A. $943.94  B. $724.71  C. $809.39  D. $793.21

Teal and Associates needs to borrow $65,000. The best loan they can find is one at 12% that must be repaid in monthly installments over the next  5 1/2 1 2  years.  How much are the monthly payments? (a) State the type. A. ordinary annuityB.sinking fund    C.present valueD.amortizationE.future value (b) Answer the question. (Round your answer to the nearest cent.)

Paymaster Enterprises has arranged to finance its seasonal working capital needs with a short term bank loan.  The loan will carry a rate of 0.072 per anum paid in advance (discounted).  If Paymaster plans to borrow $760000 for a period of 7 months, what is the cost of the loan.

You have been assigned to estimate the interest rates that your company may have to pay when borrowing money in the near future. The following information is available.kPR = 2%MR = 0.1% for a 1 year loan increasing by 0.1% for each additional yearLR = 0.05% for a 1 year loan increasing by 0.05% for each additional yearDR = 0 for a 1 year loan, 0.2% for a 2-year loan, increasing 0.1% for each additional yearExpected Inflation Rates           Year 1 = 7%           Year 2 = 5%           Year 3 and thereafter = 3% a. Calculate the inflation adjustment (INFL) for a 5-year loan. b. Calculate the appropriate interest rate for a 5-year loan.

Everett's Electronics is receiving a senior bank loan with the following terms: $6MM principal, 5.6% interest rate, 7 year loan term, 0.75% commitment fee, and a 1% closing fee.   What is the expected annual return to the lender?   A. 5.85% B. 6.85% C. 5.91% D. 6.2%

You own a car with somewhat high fuel consumption. It is 10 years old and can be sold now for $3,000 cash. Assume its market value (MV) in two years will be $500. The annual maintenance expenses are expected to be $400 into the foreseeable future, and the car averages only 2 miles per gallon of fuel. Gasoline costs $5.00 per gallon, and the car will be used for about 200 miles per year. If you sell the old car, you can buy a newer model for $10,000. It will be under a maintenance warranty for two years, so this expense is negligible. The newer car will average 10 miles per gallon of fuel and will have an MV of $7,000 in two years. Use a two-year study period to determine which alternative is preferred. The MARR is 15% per year. State your assumptions.