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Compute how much interest a company would pay in 2023 on a 5-year, $500,000+U dollar loan (which it takes out today and has all principal due in 2028) that has an interest rate contractually set to equal 2.50% above the 1-year Treasury bond yield on June 15 each year if that specified T-bond rate turns out to be 9.23% on June 15, 2023. U=44
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- Compute how much interest a company would pay in 2023 on a 10 year, $100,000+u dollar loan (which it takes out today) that has an interest rate contractually set to equal 2.50% above the 1 year treasury bond yield on June 15 each year if that specified T-bond turns out to be 9.23% on June 15, 2023? U=12Use the present value tables to answer the following questions. Required:1) What is the present value of a $100,000 loan issued on January 1, 2020, due on January 1, 2025, discounted at 14% compounded annually? 2) What is the present value of a $100,000 loan issued on January 1, 2020, due on July 1, 2025, discounted at 16% compounded quarterly? 3) How much is the difference between the face amount of $25,000 and the present value of $25,000 due at the end of sevenyearsat9%compoundedannually?A treasury bill (or bond) promises to pay R1 200 000 to the holder of the bill in a year’s time. Based on this information, which one of the following statements is correct? (a) If the holder pays R1 142 000 for the bill, the return on this treasury bill for a year will be 4.83%; (b) A return of 6% means that the holder will pay R1 135 000 for the treasury bill; (c) A return of 3% would imply a purchase price of R1 173 000; (d) If the holder pays R1 140 000 for the bill, the return for the year will be 5.3%.
- Use a bankers year: 360 T-bills (Treasury bills) are one of the instruments the U.S. Treasury Department uses to finance public debt. If you buy a 200-day T-bill with a maturity value of $17,750 for $17,564.46, what annual simple interest rate will you earn? Express your answer as a percentage.Solve the following and show your solution. 1. Using the Banker's Rule, find the interest and the amount due if P6500 was borrowed on October 16, 2021 to be repaid on April 5, 2022 at 18% simple interest. 2. Find the compound interest and the compound amount due at the end of 20 years and 7 months if P20,000 is invested at 9% compounded monthly.Suppose a U.S. government bond will pay $1,000 three years from now. If the going interest rate on 3‐year government bonds is 4%, how much is the bond worth today?
- The coupon rate of a floating note that makes payments in June and December is expressed as six-month MMR + 50 bps. Assuming that the sixth-month MMR is 4% at the end of June 2021 and 3% at the end of December 2021, what is the interest rate that applies to the payment due in December 2021. Please input the answer as percentages (for example, if the answer is 14.56%, put in "14.56").What would you pay for a HK$50,000 debenture bond that matures in 15 years and pays HK$5,000 a year in interest if you wanted to earn a yield of: (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) Click here to view the factor table. (a) 10%? (Round answer to O decimal places, e.g. 458,581.) Amount to pay HK$Suppose a U.S. government bond promises to pay $3,000 three years from now. If the going interest rate on a 3-year government bond is 5%, how much is the bond worth today?
- 6. Consider a credit default swap initiated on April 1, 2012. The notional principal amount is $100 million. The premium payments are made annually at a rate of 180 basis points per year. The swap will last for 5 years. Suppose that default event occurs on December 31, 2014. The recovery rate is 65%. Then the accrual payment is equal to ___________. a. $0b. $1,200,000c. $1,350,000d. $4,400,000e. $35,000,000If a one-year bond with a face value of $100 (the bond pays the bearer $100 one year from now) sells today for $85, what is the interest rate on the bond? 0 15% 17.6% 1.18% It depends on what the Federal Reserve sets as its target rate for the Federal Funds Rate.A simple "EE US Treasury Savings Bond" pays the holder $1000 in 30 years. Given that the applicable interest rate on the bond is 2.5% APR compounded monthly, how much does the bond cost today? (The purchase date is always time t=0 for each transaction).
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