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- Prepare a report on the topic "Alternative forms of Financial Inflow". Present the topic objectively.Consider the following table: Weights 25% Risk Solvenc 25% Repayme 10% Profitabilit 10% Liquidit Class y nt y y 10% Financial Efficiency 20% Collater al 1 X 2 X X 3 X 4 X 5 X Based on the above information, find the weighted average score using the single rating system. 3.5 O 2.8 O 8.2 3.8Peter Scents has been given two competing offers for short-term financing. Both offers are for borrowing $15,00 for 1 year. The first offer is a discount loan at 8%; the second offer is for interest to be paid at maturity at a stated interest rate of 9%. Show Solutions and Explanation. A. Calculate the effective annual rates for the discount loan. (Format: 1.11%) B. Calculate the effective annual rates for the loan with interest to be paid at maturity. (Format: 1.1%)
- Leon and Heidi decided to invest $3,000 annually for only the first eight years of their marriage. The first payment was made at age 25. If the annual interest rate is 10%, how much accumulated interest and principal will they have at age 65? Click the icon to view the interest and annuity table for discrete compounding when i = 10% per year. The accumulated interest and principal will equal $ ... (Round to the nearest dollar.)a. If you have a choice between depositing your $100 into an account that earns 7% simple interest for 5 years, or one that earns 6% compound interest for 5 years, which would you choose? Instructions: Enter your responses as whole numbers. After 5 years, your deposit in the 7% account would be worth $ After 5 years, your deposit in the 6% account would be worth $ Therefore, you should choose (Click to select) b. What if you were depositing your $100 for 20 years? Instructions: Enter your responses as whole numbers. After 20 years, your deposit in the 7% account would be worth $ After 20 years, your deposit in the 6% account would be worth $ Therefore, you should choose (Click to select)Consider price quotes and characteristics for two different bonds:Bond A Bond BCoupon Payment Annual AnnualMaturity 3 years 3 yearsCoupon Rate 10% 6%Yield to Maturity 10.65% 10.75%Price 98.40 88.34At the same time, you observe the spot rates for the next three years:Term Spot (Zero-Coupon) Rates1 year 5%2 years 8%3 years 11%Demonstrate whether the price for either of these bonds is consistent with the quotedspot rates. Under these conditions, recommend whether Bond A or Bond B appears tobe the better purchase.
- Q) General Electric recently sold $1000 bonds maturing in 30 years with an annual yield of 4.125%. After how much time could they be sold for twice their original price? Give your answer in years and months. Solve this Handwriting or typed not in excel. And correctly exolainFind the Effective Interest Rate Payment Period Payment Period Monthly Semi Annually 6% Compounded Quarterly Blank 1 % Blank 2 % 12% Compounded Blank 3% Blank 4 % Monthly 18 % Compounded Blank 5% Blank 6% Continuously Note: Final answer should be in percentage value. Round your answer to one decimal place. Example: 12.4% Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer Blank 4 Add your answer Blank 5 Add your answer Blank 6 Add your answerWhat interest rate would make it worthwhile to incur a compensating balance of $11,000 in order to get a 1-percent lower interest rate on a 1-year, pure discount loan of $230,000?
- MCQs Which of the following can be an underlying for a derivative? Temperature or climate Specified Price Interest or exchange rate All of these Which of the following can be a notional amount for a derivative? Share price Interest rate Number of currency units Exchange rate Derivatives are obtained As hedging instrument to hedge some kind of risk for speculation either a or b neither a or bA 7% semi-annual coupon bond settles 12/11/15 at 105.00 (clean price). Bond maturity is 12/31/25. Assuming a 30/360-day count convention, calculate the dirty price. 108.131 106.377 106.137 105.690 103.619Answer all parts complete and correct only follow steps as asked and do as per guidelines to get 100% feedback. 1) Calculate the price of a bond with 8 years to maturity, that pays a coupon rate or 3% quarterly, and face value of $10,000. Assume that the YTM is 3.5% quarterly.