II. Complete Me!Directions: Complete the table below by finding the unknown.MaturityPrincipal (P)Rate (r)Time (t)Interest (I,)Value (F)P 60,000.004%15(1)(2)(3)12%P 15,000.00(4).P 50, 000.00(5)(6)P 59,500.002(7)10.5%(8)P 157,500.00P 457,500.00P 1,000,000.000.25%6.5(9)(10)

Interest = Principal x Rate x Time 1) Interest = 60,000 x 4% x 15 =36,000 2) Maturity Value =…

Answered: Maturity Value (F) Principal (P) Rate…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Price $925.93 YTM 8.00% 853.39 8.25 782.92 8.50 15.00 8.75 650.00 9.00 a. Calculate the forward rate of interest for each year. b. What is the 2-year forward rate beginning in year 3? Maturity (years) 1 2345
mni.3
What is the interest rate?
Calculate the annual change in interest expense that would occur for a drop in interest rates from 6% to 4% for a borrower with $5,000,000 in variable-rate debt. a. -$100,000 Ob. $200,000 O c. $300,000 d. $100,000
L1
Future values. Fill in the future values for the following table, a. Use the future value formula, FV=PVX (1+r)^. b. Use the TVM keys from a calculator. c. Use the TVM function in a spreadsheet. using one of the three methods below:
Bank 3 Liabilities (millions) 9. 17 Assets (millions) Maturities 1 day +1 day-3mos +3 mos-6 mos +6 mos-12 mos +l year- 5 years 6. 11 10 43 15 52 90 11 Use the Repricing Model. If interest rates rise by 56 basis points for assets and 142 basis points for liabilities over the next year, then how will impact the interest income of Bank 3 over the next year? O Bank 3 will experience a loss of $1,483,000 O Bank 3 will experience a gain of $679,400 Bank 3 will experience a loss of $679,400 Bank 3 will experience a gain of $1,953,400
What is the period in years?

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Maturity Value (F) Principal (P) Rate (r) Time (t) Interest (I,) P 60,000.00 4% 15 (1) (2) (3) 12% P 15,000.00 (4) P 50, 000.00 (5), 2 (6) P 59,500.00 (7) 10.5% (8) P 157,500.00 P457,500.00 P 1,000,000.00 0.25% 6.5 (9) (10)