QUIZ 1 ANSWERS

Time remaining: 01 :49 :37 Finance Question 1 . (A) Suppose the LKM stock price is AUD 30, and the continuously compounded interest rate is 5%. (i) What is the 6-month forward price, assuming dividends are zero?  (ii) If the 6-month forward price is AUD 30.50, what is the annualized forward premium?  (iii) If the 6-month forward price is AUD 30.50, what is the annualized continuous dividend yield (B) Assume an investor has used fifty futures contracts to hedge the price exposure of gold. Each futures contract is on 5000 ounces of gold. At the time the hedge is closed out, the basis is $0.30 per ounce. What is the effect of the basis on the hedger’s financial position? (i) If the trader is hedging for the purchase of gold  (ii) If the trader is hedging for the sale of gold  (C) Suppose the futures price is 1100 and you wish to acquire a $2.2 million position in the S&P index. (i) How many futures contracts will you buy or sell, if the current value of one futures contract is…

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$1000 accummualtes to $1500 in 5 years time and the rate of inflation is 3% p.a. What is the annual effective real rate of return? Question 6Select one:Select one: A. 5.29% B. 6.38% C. 11.70% D. 2.25%

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What is the present value of $14,000 to be received in one year if the interest rate is 8% p.a.? a. $6000 b. $15120 c. $12963 d. $22000

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Ques What is the future value (FV) of $50,000 in six years, assuming the interest rate is 4% per year? A. $53,776 B. $56,939 C. $32,500 D. $63,266

Please prvode step by step explaination    What is the future value of $14,000 invested for one year at an interest rate of 5% p.a.? a. $14700 b. $13333 c. $9000 d. $19000

What is the present value (PV) of $70,000 received six years from now, assuming the interest rate is 5% per year? O A. $45,500 O B. $52,235 OC. $91,411 D. $44,400

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Term in years: Rate: 2 OA $74.862 OB $02.385 OC. $57,339 OD $40.000 10 35% 30 43755 3.125% The table above shows the interest rates available from investing in msk free US Treasury securbes with different investment ferms. If an investment offers a risk-free cash flow of $85,000 in ten years' time, what is the present value (PV) of that cash flow?

TIPS Capital Return Consider a 4.75 percent TIPS with an issue CPI reference of 186.10. At the beginning of this year, the CPI was 199.20 and was at 204.30 at the end of the year. What was the capital gain of the TIPS in dollars? Assume semi-annual interest payments and $1,000 par value. Note: Round your answer to 2 decimal places. Multiple Choice O O $27.40 $5.10 $18.20 $13.10 ?

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Hii expert please given correct answer financial Accounting question

j. Find the PV and the FV of an investment that makes the following end-of-year payments. The interest rate is 10%. Payment $100 $300 $500 Year 1 2 3 Round your answers to the nearest cent. PV of investment: $ FV of investment: $

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Suppose the term structure of interest rates is shown below: Term Rate (EAR%) 5.00% 4.80% O $2,408 1 year 2 years 3 years 5 years 10 years 20 years The present value (PV) of receiving $1,100 per year with certainty at the end of the next three years is closest to O $3,612 O $4,214 O $3,010 4.60% 4.50% 4.25% 4.15%

Multiple Choice Question What is the present value of $100 today, $200 at the end of Year 1, and $300 at the end of Year 2 if the interest rate is 8 percent per year? O $521.16 O $542.39 O $502.21 O $587.94

What is the future value in 180 days of $250,000 at 9% p.a. simple interest? Select one: a. $261,095.89 b. $201,905.00 c. $4,300,000 d. $118,000.00