a. Westpac offers a personal loan that will require you to pay 9.75% per annum, compounded rate charged by the bank? (round the final outcome to 2 decimal places) b. Lord Ledger wishes to leave a provision in his will that $64,000 will be paid annually in perpetuity to the Salvation Army. How much must he provide in his will for this perpetuity if the interest rate is 8.65% per annum? (round the final outcome to 2 decimal place) how workings Silicon Valley Bank (SVB) failed after a bank run in March 2023, marking the third-largest bank failure in United States history. Using e bond theorem, briefly explain how the interest rate rise helped trigger its collapse.

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
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I want solution of all three parts....a, b and c

a. Westpac offers a personal loan that will require you to pay 9.75% per annum, compounded fortnightly. What is the effective annual
rate charged by the bank? (round the final outcome to 2 decimal places)
b. Lord Ledger wishes to leave a provision in his will that $64,000 will be paid annually in perpetuity to the Salvation Army. How much
must he provide in his will for this perpetuity if the interest rate is 8.65% per annum? (round the final outcome to 2 decimal place)
Show workings
C.
Silicon Valley Bank (SVB) failed after a bank run in March 2023, marking the third-largest bank failure in United States history. Using
the bond theorem, briefly explain how the interest rate rise helped trigger its collapse.
Transcribed Image Text:a. Westpac offers a personal loan that will require you to pay 9.75% per annum, compounded fortnightly. What is the effective annual rate charged by the bank? (round the final outcome to 2 decimal places) b. Lord Ledger wishes to leave a provision in his will that $64,000 will be paid annually in perpetuity to the Salvation Army. How much must he provide in his will for this perpetuity if the interest rate is 8.65% per annum? (round the final outcome to 2 decimal place) Show workings C. Silicon Valley Bank (SVB) failed after a bank run in March 2023, marking the third-largest bank failure in United States history. Using the bond theorem, briefly explain how the interest rate rise helped trigger its collapse.
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