Find the nominal rate that if converted quarterly could be used instead for 15% compounded semi-annually?

Q: a) First, ignore the fact that rrf depends on whether you are long or short the risk-free asset.…

A: Note:   This post contains multiple questions. The first three have been solved below. Please repost…

Q: The contract Ledger of Alphas Co. revealed the following expenditure an account a contract on 31…

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Q: There are four main methods of investment appraisal: Accounting Rate of Return, Payback, Net Present…

A: Investment Appraisal The method used by firms and investors to determine whether or not a specific…

Q: An investor holds 100 three-year zero coupon bonds with a face value of £100 which each trade at a…

A: Face Value of three year Bond  £   100.00 Time Period (In Years) 3 Price of three year bond  £…

Q: A loan is repaid by making payments of $2000 at the end of every six months for 12 years. If…

A: Semiannual payment (c) = $2000 Semiannual period (n) = 24 (i.e. 12 years * 2) Nominal interest rate…

Q: We consider an auction on eBay. Suppose that the ticking price is $2 for all prices. The starting…

A: In bidding there is minimum or maximum upper limit allowed and in next bidding the prices changes by…

Q: The Barnsdale Corporation has the following ratios: A0*/S0 = 1.6; L0*/S0 = 0.4; profit margin =…

A: Additional Funds needed (AFN): A company may need to raise funds needed for expansion when its…

Q: Consider a 1-year semi-annually paid interest rate swap, the notional is £1,000,000, the swap rate…

A: Interest rate swap is an agreement between two parties where one party agrees to make fixed interest…

Q: What is the DEAR of the bank's

A: DEAR(Daily Earning at Risk) measures the potential loss in portfolio's value over a one-day period…

Q: Using the expectations theory, compute the expected one-year interest rate in the second year (Year…

A: Information Provided: One year interest rate on T-Bond = 0.8% Two-year interest rate on T-Bond =…

Q: (a) Use the YIELD command in excel to calculate the bond's yield to maturity on each of the dates.…

A: As per instructions only question a and b will be solved. The yield function in excel requires 7…

Q: onsider the pricing of a futures contract on copper. What would you expect to happen if storage…

A: Future contracts are to be settled after some period of time but they derive their value from the…

Q: Question 3: A manufacturing Co. Ltd. opens the costing records, with the balances as on 1 April,…

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Q: H4. A company buys a futures contract on 10,000 units of a commodity for $0.67 per unit. The initial…

A: When a trader trades in futures contracts he has to maintain two margins one initial margin and the…

Q: 5. Profitability ratios Profitability ratios help in the analysis of the combined impact of…

A: The operating margin is an important measure of overall profitability from operations. It is the…

Q: Calculate the PV of the project using the APV method.

A: Adjusted Present Value: It is a method used in capital budgeting to value a project or a company.…

Q: The stock price of Heavy Machine (HM) changes only once a month: Either it goes up  by 20% or it…

A: Call option is one of the form of future contracts. Under this, agreement is being made for…

Q: 2-7 SCENARIO ANALYSIS Huang Industries is considering a proposed project whose estimated NPV is $12…

A: As per the given information: Economic Scenario Probability of Outcome NPV Recession 0.05 ($70…

Q: uestion 3: A manufacturing Co. Ltd. opens the costing records, with the balances as on pril, 2012 as…

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Q: 2.  Trecor Trecor is a computer accessories manufacturer. It plans to launch a new product which…

A: A capital budgeting decision is a one-time investment that is expected to pay off over some time.…

Q: answer the question now its econ answer it now!!!

A: Net benefits refer to the estimation of all the benefits summed up and the sum of all the costs…

Q: Now it's time for you to practice what you've learned. Suppose that Royval Inc has the following…

A: Ratio analysis is a quantitative method to know liquidity, operational efficiency, and profitability…

Q: Suppose you have an investment horizon of 10 years and bought a 20-year maturity, 8% coupon bond at…

A: Total return on a callable bond Total return is calculated using cash inflows and outflows as shown…

Q: Galvatron Metals has a bond outstanding with a coupon rate of 6.4 percent and semiannual payments.…

A: Cost of Debt = ( Interest Amount ( 1 -  t ) +  Face  Value Of Bond - Market  Value  of bond /…

Q: Explain five reasons why the financial institution's

A: The financial institution hold sufficient cash with them so that they can take use of opportunities…

Q: Although the company does not have an option to delay construction, it does have the option to…

A: Given, The expected price is $7 million Cost of capital is 12%

Q: Corning’s market value was below its book value because it was facing pricing pressure in the…

A: The price pressure hypothesis (PPH) predicts that shocks will have a temporary effect on prices…

Q: GKL Ltd. is considering installment sale of LCD TV as a sales promotion strategy. In a deal of LCD…

A: Answers  highlighted below

Q: what is the stock's market value?

A: Information Provided: Par value = $210 per share Annual dividend rate = 11% of par value Required…

Q: George has planned ahead and identified his dream house purchase in 3 years’ time. The current value…

A: Current value of the house = $580,000 Growth Rate = 4.5% Time Period = 3 Years Total Savings after 3…

Q: A local pension scheme collects contributions from its members each year end. The planned collection…

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…

Q: Aunt May has three sums of money invested, one at 12%, one at 10%, the last at 8%. His total annual…

A: When we make investments the investment amount earns interest. Interest rate varies from one type of…

Q: On September 1, 2010, you decided to put $ 12000 in a money market fund. On March 1, 2015, you…

A: Note: All the Given Options are incorrect, so we are solving the correct one for you as per the…

Q: the financial institution do to lower these risks

A: The main risk is that interest rates will rise. Therefore, banks have to pay  higher interest rates…

Q: A Services company is projecting that demand for its services will rise considerably the next three…

A: Leasing help the company to use the asset immediately without buying it at a huge cost. On the other…

Q: Determine if a fixed or a floating debt rate should be used during a recession.

A: A fixed debt rate is the interest rate that remains the same over the lifetime of the debt…

Q: Consider the following fixed borrowing rates available to Grey Corp and to Brady Corp in both the…

A: Interest Rate Swap: A rate derivative is an interest rate swap. It involves two people exchanging…

Q: Suppose a firm uses a constant WACC in determining the value of capital budgeting  projects rather…

A: WACC is the weighted average return that a company pays over all its assets. The WACC of a company…

Q: Solve for 4A Craft’s operating breakeven point value ii)Solve for of 4A Craft’s EBIT value of that…

A: Breakeven Point: It refers to the point at which the firm's cost and revenues are equal. Hence, at…

Q: Swampy Ox Real Estate (SORE) has been growing at a constant 8 percent rate for many years, and it…

A: To Calculate Permanent Assets- Permanent Assets =  Permanent Assets = 520*(1.08)1/2 Permanent Assets…

Q: Over the last five years, you have earned the following returns on the NZX Year Return (ending in…

A: Note: The question mentions over the last 5 years. However, the data is for last 9 years. Hence, 9…

Q: Sue has contributed $2,843.00 every three months for the last 11 years into an RRSP fund. The…

A: Future value of the money include the amount being deposited and amount of compounding interest…

Q: a) Discuss the rationale and the implications of ring-fencing regulation in the UK banking industry

A: From January 2019 all large banks in UK are required to separate their core retail banking services…

Q: To start saving for retirement, Alexandra opens an RRSP that earns interest at a rate of 4.9%…

A: The future value is useful to investors and financial planners, as they use it to estimate how much…

Q: uppose you own a convertible bond that has a conversion ratio equal to 58. Each convertible bond has…

A: Some bonds have conversion features that means they are converted into the number of shares on the…

Q: Maturity Days to Maturity BID ASKED CHANGE ASKED YIELD 26 Sep 19 23 1.940 1.930 0.002 1.968 12 Dec…

A: Maturity Days to Maturity BID ASKED CHANGE ASKED YIELD 26-Sep-19 23 1.94 1.93 0.002 1.968…

Q: Question 14/14 Use the given cash flow to determine the annual amount A required to repay P1, P2, P3…

A: Value at 0  = 1000(F/P,4%,2)(F/P,6%,2) +2000(F/P,4%,1)(F/P,6%,2) +3000(F/P,6%,2) +4000(F/P,6%,1)  =…

Q: Suppose 0.3 is the correlation of returns between any two stocks in an equal-weighted portfolio…

A: Portfolio Risk: The portfolio risk measures the volatility of a given portfolio. It comprises the…

Q: The central bank of a country is having trouble with its economy, and the financial market wants to…

A: Quantitative  Easing- Under this form of monetary policy, the central bank of a country like Federal…

Q: There is a new product launch, and the research and development costs are $40 million today. The…

A: Capital Budgeting  A method that helps determine whether a company's long-term investments are worth…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.