r1=0.07, r2=0.065, r3=0.06, r4=0.05, r5=0.475, r6=0.04 Find current price P(t-0) with F=5000 with annual coupon rate is 0.05? Find annual rate? (Everything is annual)
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- For my previous question: Yield to Maturity for 2 years Maturity and price is $92.45. Formula is PV = Face Value/(1 + YTM)^time. 92.45 = 100/(1 + YTM)^2. Your answer said 1.0817 = (1 + YTM)^2 is 1.04003 = 1 + YTM. What did you do to get 1.04003?What is the present value for a future value of FV=$500,000 at time t=36 if the interest rate is r=0.05 (e.g., r=5%)? What is the interest rate “r” if PV=$100 and the FV=$350 in year t=12? What is the interest rate “r” if PV=$1250 and the FV=$2150 in year t=10? How long will it take to double your investment if the interest rate is r=0.06 (r=6%)? How long will it take to increase your investment by 2.5 times if the interest rate is r=0.14 (r=14%)? Which is the better option if the interest rate is r=0.10 (r=10%)? Show all work used to arrive at your answer. a. Option I: Receive $1000 today at time t=0. b. Option II: Receive $1615 at time t=5.10) Which is the better option if the interest rate is r=0.07 (r=7%)? Show all work used to arrive at your answer. a. Option I: Receive $510 today at time t=0. b. Option II: Receive $1000 at time t=10.You have the following Yield to maturities on Zero-coupon T-bills for 1000 par: Year YTM 1 2.1% 2 2.2% 3 2.4% 4 2.8% 5 3.0% What is the implied 2nd year's future short rate? Could you explain how to find R2 or how to calculate it?
- 1) What is the future value at time t=3 for a present value of PV=$100 (e.g., t=0) if the interest rate is r=0.10 (e.g., r=10%)? 2) What is the future value at time t=18 for a present value of PV=$1525 (e.g., t=0) if the interest rate is r=0.085 (e.g., r=8.5%)? 3) What is the present value of a future value of FV=$500 at time t=5 if the interest rate is r=0.10 (e.g., r=10%)? 4) What is the present value for a future value of FV=$500,000 at time t=36 if the interest rate is r=0.05 (e.g., r=5%)? 5) What is the interest rate “r” if PV=$100 and the FV=$350 in year t=12? 6) What is the interest rate “r” if PV=$1250 and the FV=$2150 in year t=10? 7) How long will it take to double your investment if the interest rate is r=0.06 (r=6%)?8) How long will it take to increase your investment by 2.5 times if the interest rate is r=0.14 (r=14%)?9) Which is the better option if the interest rate is r=0.10 (r=10%)? Show all work used to arrive at your answer. a. Option I: Receive $1000 today at time…F.v= 20,000 P.V= 16,000 n= 3 i= ? Use present and future value formula and find out interest rate.Determine the present value P you must invest to have the future value A at simple interest rate r after time t. A = $7000.00, r = 15.0%, t = 39 weeks $ (Round to the nearest cent.)
- Mf4. . Assume that you bought a Treasury bill at price=92.450 and sold two days later at 92.550. What is your holding period return? What is your annualized return?You observe the following yield curve: YTM 1-year Zero 2-year Zero 6.10% 6.20% 3-year Zero 6.30% 4-year Zero 6.40% (Round your final answers to 2 decimal pleces. Enter percentages "as-Is", without the % sign.) a) If you believe that the yield curve next year will be the same as today's, calculate the holding period return (1-year) on the 1-year Zero and the 4-year Zero. 1-year Zero HPR % 4-year Zero HPR | % b) Recalculate the return on the 4-year zero if you believe in the expectations hypothesis. 4-year Zero HPR %Does the formula change when you change the value of n given that you use continuous compounding. For example with a 2 year tbill.... n = 2 coupon = 1 ask price = 96.964 bid price = 96.904
- Find the total value TV of the given income stream and also find its present value PV (at the beginning of the given interval) using the given interest rate. (Round your answers to the nearest cent.) R(t) = 40,000 + 1,000t, 0 ≤ t ≤ 10, at 5% TV = $ PV = $Determine the present value P that must be invested to have the future value A at simple interest rate rather time A = $4000.00, r= 11.0%, t = 6 months1. How much would you have at the end of five years if you invested P50,00Q at 10.5% interest rate? a) P63,814.08 b) P82,372.34 c) P142,650.71 2. Discounting basically looks for which type of value? a) Present Value b) Future Value 3. The risk return trade-off can be summed up by which phrase? a) Time is gold b) No pain, No Gain c) A penny saved is a penny earned. 4. Check if your answer is correct by calculating the FV of your answers in Item 2 and the interest earned. a) FV P1,000,000; Interest P393,000.11 b) FV P1,000,000; Interest P390,000.11 c) FV P1,000,000; Interest P394,000.11 5. If you want to have a million pesos in five years, how much should you deposit/invest right now at a 10.5% interest rate? a) P350,506.50 b) P783,526.17 c) P606,999.89