Homework Answers
Solution is 350 dollars two years from now.
Because the future value is more than present value when interest rates are positive
And future value is less than present value when interest rates are negative.
Add Answer to:
1 pts Question 32 If interest rates are positive, which of the following has the highest...
Question 8 1 pts Consider the following spot interest rates for maturities of one, two, three,...
Question 8 1 pts Consider the following spot interest rates for maturities of one, two, three, and four years. r1=2.42% r2=3.82% r3=4.01% 64=4.79% What is the one year forward rate two years from now (in percent)? Use the exact formula. Answer to two decimals, carry intermediate calcs. to four decimals.
Question 33 - 36: A bank offers you the following interest rates on three different GICs:...
Question 33 - 36: A bank offers you the following interest rates on three different GICs: (i) a 2 year term with 1% per year and interest reinvested; (ii) a one year term at 0.9% interest; (iii) 2.15% after 2 years. Suppose you expect the one year risk free interest rate in a year from now to be 1.25%. Which investment gives you the highest expected return over two years?
Which of the following bonds has the highest level of interest rate risk? Question 36 options:...
Which of the following bonds has the highest level of interest rate risk? Question 36 options: 10 year 6% bond Not enough information. 30 year 6% bond 20 year 6% bond
Question 27 1 pts A 12-year bond has an annual coupon of 9%. The coupon rate...
Question 27 1 pts A 12-year bond has an annual coupon of 9%. The coupon rate will remain fixed until the bond matures. The bond has a yield to maturity of 7%. Which of the following statements is CORRECT? O If market interest rates decline, the price of the bond will O The bond is currently selling at a price below its par O If market interest rates remain unchanged, the bond's also decline. value. price one year from now...
Which of the following bonds offers the highest current yield? a. A(n) 3.24%, 19-year bond quoted...
Which of the following bonds offers the highest current yield? a. A(n) 3.24%, 19-year bond quoted at 44.266. b. A(n) 5.40%, 28-year bond quoted at 73.777. c. A(n) 1.62%, 23-year bond quoted at 22.133. The current yield of the bond in part a is % (Round to two decimal places.) The current yield of the bond in part bis %. (Round to two decimal places.) The current yield of the bond in part c is %. (Round to two decimal...
Which of the following will have the highest value after 20 years, assuming the same annual...
Which of the following will have the highest value after 20 years, assuming the same annual interest rate of 10%? A. $170,000 deposited after 5 years B. $110,000 deposited now C. $20,000 deposits per year for 8 years, starting from now D. 10 yearly deposits from now that grows at 12% per year, with $10,000 as the first deposit (i.e., 10,000 now, 11,200 in a year, 12,544 in 2 years, etc.)
Which of the following statements is NOT CORRECT, assuming positive interest rates? A) A 5-year $100...
Which of the following statements is NOT CORRECT, assuming positive interest rates? A) A 5-year $100 annuity due will have a higher present value than similar ordinary annuity. B) A 15-year, $100,000 mortgage will have larger monthly payments than an otherwise similar 30-year mortgage. C) If an investment pays 10% interest compounded annually, its effective rate will also be 10%. D) Securities A and B offer the same nominal rate of interest, but A pays interest quarterly and B pays...
Question 54 1 pts Which of the following statements is true? o If a strategy is...
Question 54 1 pts Which of the following statements is true? o If a strategy is weakly dominant, then it is also strictly dominant. None of the other answers is correct. Games with strictly dominant strategies guarantee that players achieve the highest available payoffs in Nash Equilibrium. If a two-player game has a strictly dominant strategy for one player, then it does not necessarily have a strictly dominant strategy for the other player. The prisoners' dilemma game has no strictly...
Question 32 1 pts The one year spot interest rate is 1.75% and the one year...
Question 32 1 pts The one year spot interest rate is 1.75% and the one year forward rate next year is 2.50%. According to the expectations theory. what is the current two-year rate? 3.20% 2.12% 1.98% 1.77%
Question 4 1 pts Which one of the following compounds has the highest boiling point? یہ...
Question 4 1 pts Which one of the following compounds has the highest boiling point? یہ لہلم والی Question 5 1 pts Which of the following is the strongest acid?
Question 8 1 pts Consider the following spot interest rates for maturities of one, two, three, and four years. r1=2.42% r2=3.82% r3=4.01% 64=4.79% What is the one year forward rate two years from now (in percent)? Use the exact formula. Answer to two decimals, carry intermediate calcs. to four decimals.
Question 33 - 36: A bank offers you the following interest rates on three different GICs: (i) a 2 year term with 1% per year and interest reinvested; (ii) a one year term at 0.9% interest; (iii) 2.15% after 2 years. Suppose you expect the one year risk free interest rate in a year from now to be 1.25%. Which investment gives you the highest expected return over two years?
Question 27 1 pts A 12-year bond has an annual coupon of 9%. The coupon rate will remain fixed until the bond matures. The bond has a yield to maturity of 7%. Which of the following statements is CORRECT? O If market interest rates decline, the price of the bond will O The bond is currently selling at a price below its par O If market interest rates remain unchanged, the bond's also decline. value. price one year from now...
Which of the following bonds offers the highest current yield? a. A(n) 3.24%, 19-year bond quoted at 44.266. b. A(n) 5.40%, 28-year bond quoted at 73.777. c. A(n) 1.62%, 23-year bond quoted at 22.133. The current yield of the bond in part a is % (Round to two decimal places.) The current yield of the bond in part bis %. (Round to two decimal places.) The current yield of the bond in part c is %. (Round to two decimal...
Question 54 1 pts Which of the following statements is true? o If a strategy is weakly dominant, then it is also strictly dominant. None of the other answers is correct. Games with strictly dominant strategies guarantee that players achieve the highest available payoffs in Nash Equilibrium. If a two-player game has a strictly dominant strategy for one player, then it does not necessarily have a strictly dominant strategy for the other player. The prisoners' dilemma game has no strictly...
Question 32 1 pts The one year spot interest rate is 1.75% and the one year forward rate next year is 2.50%. According to the expectations theory. what is the current two-year rate? 3.20% 2.12% 1.98% 1.77%
Question 4 1 pts Which one of the following compounds has the highest boiling point? یہ لہلم والی Question 5 1 pts Which of the following is the strongest acid?
Most questions answered within 3 hours.
-
Minitab Problem: Take the Lake Hume June rainfall data and find
use the processes outlined in...
asked 47 minutes ago -
X Company is trying to decide whether to continue using old
equipment to make Product A...
asked 48 minutes ago -
IN PYTHON ONLY !! Program 2: Re-work
program #5 (WeeklyHours) from the previous assignment such that...
asked 1 hour ago -
The average length of time between arrivals at a turnpike
toll-booth is 26 seconds. What is...
asked 3 hours ago -
(a) A piston at 6.1 atm contains a gas that occupies a volume of
3.5 L....
asked 4 hours ago -
Please answer true or false. Words
cannot be changed or added in to make it true...
asked 4 hours ago -
An empty test tube weighs 15.923 grams. Then,
MgCl2•6H2O is added into the test tube. After...
asked 4 hours ago -
Assume memory access is 10 units of time and disk access is
10000 units of time....
asked 4 hours ago -
1. Are all good samples random?
2. Magazines often report surveys giving statistics such as “63%...
asked 4 hours ago -
Under all the various types of market structures, firms
must eventually earn some economic profits for...
asked 4 hours ago -
Consider the following fitness regime for a single locus trait
with two co-dominant alleles: w11 =...
asked 4 hours ago -
A large cable company reports the following.
80% of its customers subscribe to its cable TV...
asked 5 hours ago