You are given the following information about an investment account for the year 2021: Date January 1 March 1 August 1 December 31 Value Immédiately Before Deposit 1060 1125 1200 1420 Deposit X 100 If the annual time-weighted yield rate for this account is 10%, compute the dollar- weighted yield rate, rounded to the nearest tenth of a percent.
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- What is the (exact) nominal return on an investment that earns a real return of 14.7% while inflation is 7.4%? Enter your response, in percent (%), correct to TWO decimal places.What is the profitability index of an investment with initial investment of OMR 6600 and net present value of OMR 2100, where the discount rate was 8 percent?The current yield curve for treasuries is as follows: Maturity (years) YTM 1 0.5% 2 0.9% 3 1.01% Compute the forward rate for the third year. Enter your answer as a decimal, rounded to 4 decimal places.
- Parents wish to have $150,000 available for a child's education. If the child is now 8 years old, how much money must be set aside at 3% compounded semiannually to meet their financial goal when the child is 18? Click the icon to view some finance formulas. The amount that should be set aside is $ (Round up to the nearest dollar.) ...You are reviewing an investment with the following price history as of December 31steach year.Calculatea. The HPRfor the entire periodb. The annualHPRsc. TheEquivalent Annual Return (EAR) 2016 2017 2018 2019 2020 OMR 1.45 OMR 1.78 OMR 1.26 OMR 1.71 OMR 1.91suppose that an investment promises to pay a real 9% annual rate of interest and inflation rate is 3%. What is the effective annual interest rate on this investment assuming that interest is compounded quarterly? Note: Please show how you compute each of the items.
- What is the annualized investment rate % on a Treasury bill that you purchase for 9310 that will mature in 91 days for 9533?Using the Treasury yield information in part c, calculate the following rates using geometric averages (round your answers to three decimal places): The 1-year rate, 1 year from now The 5-year rate, 5 years from now The 10-year rate, 10 years from now The 10-year rate, 20 years from nowSuppose that an investment promises to pay a real 9% annual rate of interest and inflation rate is 3%. What is the effective annual interest rate on this investment assuming that interest is compounded quarterly? PLEASE SHOW HOW YOU COMPUTE EACH OF THE ITEMS.
- For life insurance policies, some of the premium pays for the cost of the insurance, and the remainder goes toward the cash value of the policy and earns interest like a savings account. Consider the following insurance company options. Company 1: pays 4.7% compounded monthly on the cash value of their policies Company 2: pays 4.72% compounded semiannually on the cash value of their policies What is the APY (annual percentage yield) offered by each company? (Round your answers to the nearest hundredth.) Company 1 % Company 2 % Which company offers a higher yield? O Company 1 O Company 2The following investment requires a table factor for a period beyond the table. Calculate the new table factor and the present value (principal). Use Table 11-2. Round your new table factor to five decimal places and your present value to the nearest cent. CompoundAmount Term ofInvestment (years) NominalRate (%) InterestCompounded New TableFactor PresentValue $37,000 38 7 annually $Suppose a principal P is invested at the annual (nominal) rate 7 compounded m times a year for t years. Check all of the terms below that describe the quantity (1+) - 1. m annual percentage yield amount present value future value effective rate nominal rate principal true interest rate interest rate annual rate