plus y, three-month Dater is 98 per
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A: In this question we need to calculate the effective annual rate (EAR).
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A: In this we have to find out the effective rate for both options and than find equivalent rate.
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A: Information Provided: Interest rate = 16% compounded semi-annually
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A: Interest rate (r) = 15% Number of compounding per year (m) = 4
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A: Given as, t is 3 months or 3/12 years.
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A:
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A: Rule 72 method is an approximated way of determining the number of years it will take to double the…
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A: Effective Annual Rates (EAR) = ( 1+ APR/m)m - 1 APR = Annual Percentage Rate n = number of…
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- Suppose that a three-year FRN pays a six-month Libor plus 4% semi-annually. Currently, the six-month Libor is 2%. The price of the floater is 90 per 100 of par value. What is the discount margin?What happens if we calculate the NPW of the loan transaction at its rate ofreturn (10% )?Estimate the annual percent rate for the add on loan Using the given number of payments and annual interest-rate. Use the formula APR = 2nr/n+1 N= 48; R= 8% APR=???
- Suppose that the 9-month and 12-month LIBOR rates are 4% and 4.2%, respectively. What is the value of an FRA where 5% is received and LIBOR is paid on £1 million for the quarterly period? All rates are quarterly compounded and expressed as per annum. Assume that LIBOR is used as the risk-free discount rate. Select one: a. £478.115 b. £422.870 c. £479.062 d. £426.132Use the basic formula for present value, along with the given discount rate, r, and the number of periods, n, to calculate the present value of $1 in teh case shown in the following table. Opportunity cost r: 7% Number of periods n: 17If the compounding frequency is monthly and the discount factor=0.62026, what is the value of the corresponding annual interest rate? What is the corresponding continuous compounding annual interest rate if the discount factor remains at 0.62026?
- You see the following rate “X”: 0.3% compounded weekly A) What is the APR of X? B) What are the APY of X? C) When compared with rate “Y” that has EAR=16%, which rate would you pick if you were asked to borrow money at that rate for one year? Why?1. If you receive $176 each month for 12 months and the discount rate is 0.04, what is the future value? (show the process and can use financial calculator)Assume you will get 20 rental payments paid over 20 years at the beginning of each year. Initially, the rent equals R=$12; but it will grow at a rate of 1% per year. The NPV of this income stream equals $170.20. What is your discount rate? Provide your answer as percentage with two decimals, e.g., 1.23% (or 0.0123)
- What discount rate should a lender charge to earn an interest of 2 1/4 % on a 90-day loan? Hint: An interest rate r and discount rate d are said to be equivalent if these two simple rates give the same present value for an amount due in the future. Thus, r = d/(1 - dt) and d = r/(1 + rt)Two mutually exclusive alternatives are being considered. The MARR is 15% per year. General inflation is 5.5%/year. Based on the data below, performan appropriate analysis to select the most economical alternative. State your assumptions.The formula below tells us how to obtain the maturity value on a simple discount loan if we are given the proceeds, the discount rate, and the term. M = T-dRT If a loan's annual simple discount rate is 3.34%, how many years would it take for the debt to double? (This is called the doublin time of a loan). Round your answer to the nearest tenth of a year. Hint: divide both sides of the equation by P. If M is twice as much as P, what should the fraction on the left-hand side equal?