3. Calculate the Net Single Premium (NSP) for 5 years Double Endowment policy of TK. 5000 at the age of 36 from the following table. Year Age Number of Number of PVIF @ Deaths Policyholders 4.37% 9480 1 2 36 25 37 26 3 38 28 4. 39 40 31
Q: 1. Let r, s > 0 be interest rates. Below is a calendar of May 2022 which describes an interest rate…
A: * SOLUTION :- (1)
Q: or each year are given as: (Enter your responses rounded to two decimal places.) 1 2 4 5 Rate 2.00%…
A: The liquidity premium is an unexpected return expected by investors for instruments that are not…
Q: Economics What is the probability of default if the risk premium demanded by bond holders is 2% and…
A: A risk premium is an extra return requested by a financial backer in return for purchasing a…
Q: Consider price quotes and characteristics for two different bonds: Bond A Bond B Coupon Payment…
A: According to the information, for Bond A, Coupon is $10 (10%*$100) and ytm is 10.65% Price of Bond A…
Q: Say that a bond pays $12 in interest and has a current price on secondary markets of $132. Then the…
A: here we can find the current yield of bond as follow
Q: Suppose a ten-year bond with a $10,000 face value pays a 5.0% annual coupon (at the end of the…
A: Given: The face value of the bond is $10,000 The annual coupon rate is 0.05(5%) Annual coupn…
Q: Let's revisit the income stream from vour endowment to SCU in the first prob- lem, which is S50 K…
A: Given, The expected payment in the first period of endowment = D= $50 K = $50,000 The growth rate…
Q: 19 of 38 All eise equal, an increase in the interest rate should result in OA higher bond prices OB…
A: NOTE: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: 48. Suppose that a $1,000 face-value bond with a 5% coupon rate sells for $1,250. Wha is the yield…
A: Answer: Given, Face-value=$1,000Coupon rate=5%Coupon amount=1000×5100=$50Selling price of…
Q: a. Assume that the market value of your condo has now risen to $240,000. Ignoring interest…
A: * SOLUTION :- (2) As per guidelines I answered first three sub parts like a,b,c.
Q: 28 - All of the following are intangible benefits of information systems except: cost reduction. b)…
A: Intangible benefits are those which can not be measured in monetary terms. Usage of information…
Q: Alice has been in a defined-contribution pension scheme since she was 35 and will retire in one…
A: Pension plans are programmes in which the employer or person sponsoring the plan commits to make a…
Q: Consider a stock which pays dividends continuously at a rate propor- tional to its price. The…
A: A dividend is the dissemination of benefits by an enterprise to its investors. At the point when a…
Q: Consider the table given below to answer the following question. Year 1 2 5 8. 9. 10 Asset value…
A: Introduction Present value in year 1 = cash flow(1 + return)n = 13.13(1 + 0.13)1 = 11.61 Present…
Q: For ten years, a man inherited a 100,000 endowment every three months. He may, however, elect to…
A: According to the question, Value of Principal = 100,000 Time period = 4 years compounded quarterly…
Q: Find the annual payments to extinguish a debt of P 10,000 – payable in 5 years at 12%.
A: Borrowed amount = 10000 Time = 5 years interest rate = 12 %
Q: 8. Consider a 10 year 6.50% annual coupon bond whose duration is 7.50 years when required rate of…
A: Let the par value be 100 Purchase price of bond = 6.5/0.065*(1-1/1.065^10)+100/1.065^10 = 96.94 Let…
Q: 3. Calculate the Net Single Premium (NSP) for 5 years Double Endowment policy of TK. 5000 at the age…
A: Solution- Year Age Number of Death(D) Number of Policyholder PVIF@4.37 Amount of Policy(P) Number…
Q: Which of the following will give the correct net annual premium for a $10,000, 10-year deferred,…
A: We are going to solve for annuity problem for deferred policy.
Q: Explain "Negative interest rate policy" NIRP .Discuss its Adantages and disadvantages ????
A: Negative interest rate policy is a type of unconventional tool of monetary policy. It takes place…
Q: I need help especifically with the part where they rearrange the equation as: .0790(V/E) = .11 +…
A: The debt-to-equity (D/E) ratio measures a company's financial leverage by dividing its total…
Q: 2. On May 11, 1993, a note due on January 10, 1994 was discounted at 12.12% simple discount. Find…
A: Definition: a discount rate is a pace of getting used to limit future incomes once again to their…
Q: 2. The present value (PV) of a certain monetary investment asset Mo, with yield Mt over a time…
A: Present value is the sum of money that must be invested in order to achieve a specific amount in the…
Q: 7. Is there any circumstance where the yield curve of AAA rated corporate bonds can be similar to…
A: Corporate bonds work in the similar way as of the government bonds, it has been defined as the loan,…
Q: Rework part (f), assuming that Annie holds the bond for 10 years and sells it when the required…
A: According to the question below information given that PV= 1,000 N=10 I/Y= 7%
Q: If Reybien got a character loan of P10,000 from a bank with 18 percent interest per annum, how much…
A: The principal amount is given which is 10,000. We are required to find out the amount of interest…
Q: Assuming that the average duration of its $100 million of assets is four years, while the average…
A: Current net worth is $10 billion that is equal to 10% of its asset value.
Q: Check my w Problem 4-15 Consider a mutual fund with $360 million in assets at the start of the year…
A: *SOLUTION :- * (3) a)
Q: 3. ABC Corporation issued today a bond in favor of Mr. Barboncito and the bond has a face value of…
A: Answer in Step 2
Q: 1. Let r, s > 0 be interest rates. Below is a calendar of May 2022 which describes an interest rate…
A: * SOLUTION :- Given that ,
Q: 8. Mr. J dela Cruz borrowed money from a bank. He received from the bank P1,340 and promised to pay…
A: Simple interest is a fast and simple methodology of calculating the interest charge on a loan.…
Q: . A man borrows P2,000.00 from his friend on October 1, 2001 and promises to pay the principal and…
A: We are authorized to answer one question at a time, since you have not mentioned which question you…
Q: 13. Mr. John dela Cruz borrowed money from a bank. He receives from the bank P1,340.00 and promised…
A: Given: The principle amount is = P1,340 The future value is = P1,500 Time period = 9 months To Find:…
Q: FarCry Industries, a maker of telecommunications equipment, has 2 million shares of common stock…
A: A share is the basic unit in which the capital of a company is divided. The people who hold shares…
Q: 68. The Whitlow Hospital, a private not-for-profit hospital, uses as its performance indicator…
A: The amount of money raised by a non-profit organisation — whether through donations, memberships,…
Q: ou have determined that a firm’s dividends should grow at 9% on average in the foreseeable future…
A: Given Current dividend = 4 $ Growth rate = 9 % Required rate of return = 20 % Next dividend = 4 $ *…
Q: K-Roo Ltd. wants to expand internationally and is looking at the Euromarkets. It has access to two…
A:
Q: What refers to the cost of borrowing money or the amount earned by a unit principal per unit time?…
A: Investment is any asset in which an investor invests in order to earn profit expecting increase in…
Q: 26. If the interest rate is zero, then $1,000 to be paid in 10 years has a present discount value…
A: With Discount or interest rate equals to zero, the present value of the 1000 $ will be same as…
Q: 9. A 10-year bond sells for its face value of $10,000, with an annual coupon of $250. Because of…
A: 9. Bond new yield = coupon payment / selling price * 100 = 250/12500 * 100 = 2 % Answer is…
Q: 3. Which of the following must be included in an organization’s statement of accounting profits for…
A: At the marketplace, an organization maintains variously financial statements to evaluate its…
Q: 3.34 (LG 3.5) Gail has won a lottery that pays her $100 000 at the end of this year, $110 000 at the…
A: Present value is a concept that states that the value of money today is more valuable than the same…
Q: a. What is the future value of $500 four years from now if the interest rate is 5 percent? %24 ok b.…
A: Let's we have concider given data, Investment ammount( P) =$500 Farmula of calulation of future…
Q: I need the last three requirement i.e 3,4,5 An investor purchased a 5-year bond with quarter coupons…
A: Post other part separately Solving 3 only
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- 2. For ten years, a man inherited a 100,000 endowment every three months. He may, however, elect to receive a single lump sum payout at the end of the four-year period. If the cost of money is 14.06 percent compounded quarterly, how much is this lump sum?12:42 Expert Q&A Done e bond wi e wth S en and dd 1 y Howuh wod an be wilngt pay r ths bonda5 pr yr y d con te e the intrt and annly to d compunding when p yea The urnt worh ofhend oundt the ) Azero coupon bond will be worth $15,000 when it matures and is redeemed after 13 years. How much would an investor be willing to pay now for this bond if a 3% per year yield is desired? Click the icon to view the Interest and annuity table for discrete compounding when = 3% per year. The current worth of the bond is (Round to the nearest dollar)1.Mr. X inherited a regular endowment of P200,000 every end of 4 months for 10 years. However, he may choose to get a single lump sum payment at the end of 3 years. How much is this lump sum if the cost of money is 12% compounded quarterly?
- "Lin is wants to earn an amount of $45573. She heard that ABC Bank is accepting investments to be compounded continuously at 6.32% interest per annum. If Lin currently has only $4117, how many years should she wait to reach the amount she wants?" 88 B 26 38 D 58 E 665. Kraft is a limited partner of Johnson Enterprises, a limited partnership. As provided in the limited partnershipagreement, Kraft decided to leave the partnership anddemanded that her capital contribution of $20,000 bereturned. At this time, the partnership assets were$150,000 and liabilities to all creditors totaled $140,000.The partnership returned to Kraft her capital contribution of$20,000.a. What liability, if any, does Kraft have to the creditorsof Johnson Enterprises?b. If Johnson Enterprises had been formed as a limitedliability company, what liability, if any, would Krafthave to the creditors of Johnson Enterprises?6. Morris paid £500 amonth for 20 years to pay off themortgage on his Glasgowhouse. Ifhis down payment was £5000 and the interest rate was 6 percent compounded monthly, what was the purchase price of the house?
- 40. Calculate the modified duration of a 10-year 7% semi-annual coupon bond priced at 97.50. a. 7.316 b. 7.06 c. 6.88 d. 3.53 e. 3.67Using the following spot rates for the following 4 strips of a 2-year semi-annual 3% coupon T-Note, what would you expect the YTM of this bond to be? Term Spot Rate 6 month 6.19% 12 month 8.51 18 month 9.5O% 24 month 9.54% 4.76 8.94% 832% • 9.52% 14.63%If Reybien got a character loan of P10,000 from a bank with 18 percent interest per annum, how much interest would he have paid in one year? a. P18,000 b. P1,800 c. P900 d. P180
- Tom's retirement account in a company currently totals $ 416,384. What perpetual income can Tom and his heirs receive pee year if he retires now and the moneu is invested in an annuity earning 6% interest? A. $20,980 B. $24,980 C. $22,980 D. $26,980An investment will pay $100 at the end of each of the next 3 years, $200 at the end of Year 4, $350 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 7% annually, what is its present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent.Fact 21 Eileen has 2.5% of her earnings deposited into her retirement plan. If $150 per month is deposited in the plan, find ner monthly and yearly earnings. 8. Her monthly earnings are $ (Round to the nearest cent as needed.) Her yearly earnings are $ (Round to the nearest cent as needed.) 09 C.SU7 365 https://xlitemprod.pearsoncmg.com/api/v1/print/math