Answer:
85.84
Explanation:
•At a 1000 par value, 8%, the coupon
will be 80 (1000*0.08).
•It is also compounded quaterly = 80/4 = 20 per quarter.
•Nominal interest rate= 6%, = 1.5% per quater.
•Face value = 1000
•Since it is cimpounded quaterly, n = 5years*4 = 20
To find the redemption value at the end of five years, we need to first find the present value of the bond.
= 20/(1+0.015)+ 20/(1+0.015)² + 20/(1+0.015)³+20/(1+0.015)⁴..............+20(1+0.015)^20
= 1085.84
Therefore the redemption value after five years will be:
Present value - face value
1085.84-1000 = 85.84
shareholders are entitled to transparency
Answer:
The approximate expected appreciation rate on home equity (EAHE) is 40%
Explanation:
Loan to Value ratio is a term which determine the value of loan as compared to value of house. It is used to issue the loan amount on a property. The amount within the available limit is issued as a loan on the building.
Expected Appreciation rate = Area appreciation / Home Equity ratio
Expected Appreciation rate = Area appreciation / ( 100% - Loan to value ratio)
Expected Appreciation rate = 4% / ( 100% - 90% )
Expected Appreciation rate = 4% / 10%
Expected Appreciation rate = 40%
Answer:
amount of commission (load) Jan must pay is $1755
Explanation:
given data
investment = $39,000
charges commission (load) = 4.5 percent
to find out
Calculate the amount of commission (load) Jan must pay
solution
we get amount of commission will be here as
amount of commission = investment × charges commission % ......................1
put here value we will get
amount of commission = $39000 × 4.5%
amount of commission = $39000 × 0.045
amount of commission = $1755
so amount of commission (load) Jan must pay is $1755