Yield to maturity (Expected/Current) Number of Years to Future Liability Future Liability Coupon rate Maturity (Years) Face value 9% 9.00 $15,000.00 Bond 1 6.00% 10 1,000 Bond 2 8.000% 20 1,000 Bond 3 10.00% 25 1,000

Annual payment # of years Rate Output area: a) PV of ordinary annuity PV of annuity due b) FV of ordinary annuity FV of annuity due $ 14,500 5 7.1%

Assume you have the following asset and liability in your balance sheet Asset - Bond AModified Duration = 1.5 yearsValue = RM1 million Liability - Bond BModified Duration 2.6 yearsValue = RM2 million a. Calculate the duration gaps?b. What is the expected change in Net worth if interest increases by 1%?c. What should or could you to achieve immunised balance sheet?

Future value interest factor of $1 per period at i% for n periods, FVIF(in). Period 0.5% 10% 15% 20% 3.0% 1 6 8.0% 1.0800 1.1664 1.2597 1.3605 1.4693 1.5859 1.7138 1.8509 1.9990 2.1589 23316 25182 2.7196 9.0% 1.0900 1.1881 1.2950 1.4116 1.5386 1.6771 1.8280 1.9926 2.1719 2.3674 2.5804 28127 3.0658 1.0050 10100 10150 1.0200 2 1.0100 1.0201 1.0302 10404 3 1.0151 1.0303 1.0457 1.0612 4 1.0202 1.0406 1.0614 1.0824 1.0253 1.0510 1.0773 1.1041 5 1.0304 1.0615 10934 1.1252 1.0355 1.0721 1.1098 1.1487 1.0407 1.0829 1.1265 1.1717 1.0459 1.0937 1.1434 1.1951 1.0511 1.1046 1.1605 12190 1.0564 1.1157 1.1779 12434 12 1.0617 1.1258 1.1956 12682 13 1.0570 1.1381 12136 12936 14 1.0723 1.1495 1.2318 13195 15 1.0777 1.1610 12502 13459 16 1.0831 1.1726 1.2690 1.3728 17 10885 1.1843 12880 1.4002 18 1.0939 1.1961 1.3073 1.4282 19 1.0994 12081 1.3270 1.4568 20 1.1049 1.2202 1.3469 1.4859 21 1.1104 1.2324 13671 15157 22 7 8 9 10 11 1.4106 1.3439 2.9372 3.1722 3.4259 3.7000 3.3417 3.6425 3.9703 4.3276 4.7171…

Xt/map/ Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 10% interest compounded semiannually. Four Rivers offers 8% interest compounded quarterly. Melvin has $11,600 to invest. He expects to withdraw the money at the end of 6 years. Calculate interest for each bank and identify which bank gives Melvin the better deal? (Use the Table provided.) (Do not round intermediate calculations. Round your answers to the nearest cent.) Mystic Four Rivers Better deal Interest

You choose to invest your $3,110 income tax refund check (rather than spend it!) in an account earning 5% compounded annually. How much will the account be worth in 30 years? (Use the Table provided.) (Round your answer to the nearest cent.) Worth OVi 5: acer

Total project value ($) Debt Option Loan-to-value Rate (%) Interest only period (years) Amortization (years) $35,000,000.00 A 65% 3.25% 3 20 B 70% 3.25% 3 30 C 70% 3.00% 0 30 D 50% 4.25% 0 30

How long will it take $1387.00 to accumulate to $1627.00 at 6% p.a. compounded semi-annaally? Sutn your aneer in years and morts (hn 11 The investment will take year(s) and month(s) to mature.

Solve the following problem using the present worth analysis for an interest rate of 8%. Alt. A Alt. B Alt. B Initial cost $1,700 $2,100$3,750 Benefit/year 1,000 |1,000 1,000 Life in years|2 3 6

What is the present value (PV) of $40, 000 received ten years from now; assuming the interest rate is 5% per yeal? A. $20,873 B. $42,974 C. S24, 557 D. $26,000