Please calculate the forward rate between the two given spot rates. (ex: if you have a 1y spot and a 5y spot, you are calculating the 4y forward) 1 year spot of 3.1% 10 year spot of 5.7%

Q: A payment of $5000 that was due 20 days ago and another payment of $4000 that is due 50 days from…

A: Here, $5,000 is due 20 days ago $4,000 is due in 50 days $6,000 payment is done today $X payment is…

Q: You make a payment of of $ 24 with Apr of 5.2 % After 90 years what will you have in the account…

A: given, pmt = $24 apr = 5.2% y=90 n =12

Q: What is the value today of $1,200 per year, at a discount rate of 9 percent, if the first payment is…

A: The concept of time value of money will be used here. Value today refers to present value. The cash…

Q: Annuity X pays $115 at each year-end for 3 years. Annuity Y pays $105 at the beginning of each year…

A: Variables in the question:Annuity X pays $115 at each year-end for 3 yearsAnnuity Y pays $105 at…

Q: What is the future value annuity due of RM32,000 for the next 10 years with a discount rate of 8%?…

A: Amount of Annuity = RM 32,000 Years(n) = 10 Interest Rate(r) = 8% Future Value of Annuity = RM…

Q: create a graph depicting the present value of $100 that will be received in 5 to 10 years, using a…

A: The concept of time value of money will be used. As per the concept of time value of money the worth…

Q: Can you please help with the question in the picture attached? The answer should be only one and I’m…

A: Step 1:

Q: Case A Case B (2) In Table 2 (future value of an annuity of 1): Case A Case B Case A Case B Annual…

A: The Time Value of Money (TVM) is a fundamental financial concept that underscores the idea that a…

Q: If EAR is 20% with monthly compounding, what is the nominal rate? 15.29% 18.37% 20.99% 14.05%

A: Effective annual rate (EAR), is a rate that shows the total amount of interest that will be earned…

Q: 25,000 19,000 4,0

A:

Q: Find the amount that should be set aside today to yield the desired future amount. Compounding…

A: Present Value of future amount can be calculated as follows: = Future Value * Present Value…

Q: You have a choice of four increasing Annuity A $300 5% 12 Payment Annual Rate Interest Periods Per…

A: To Find: Which annuity reach FV of $100,000 earlier

Q: If you start making $60 monthly contributions (at the beginning of the month) and continue them for…

A: Here, Question 1:   Question 2: Particulars Values Particulars Values Monthly contributions…

Q: Calculate the annual benefits (A) If G = 200$, n = 5 years and i = 11%.

A: Gradient series can be defined as that series in which payments are increased by a constant amount…

Q: future

A: Introduction: The term future value refers to the sum of money that would be earned after the end of…

Q: For each of the following cases, indicate (a) to what interest rate columns and (b) what number of…

A: The time value of money is a key financial concept that indicates that a dollar amount in possession…

Q: An analyst is given the following effective annual rates: 3-year spot rate = 4% 5-year spot rate =…

A: 3-year spot rate = 4% 5-year spot rate = 5% 4 years forward rate 3 years from today = 6% 3 years…

Q: If P12,000 is the present value of P12,600 due at the end of 9 months, then the annual simple…

A: Simple Discount refers to the discount in which the amount of interest is deducted. This is usually…

Q: Determine the IRR of each of the following 2 alternatives (yes I want the actual rates), determine…

A: MARR is the minimum acceptable rate of return that a company expects to be earned from the project…

Q: Direction: Solve what is being asked and show your complete and neat solution. (ROUND OF PV FACTORS…

A: The annuity amount can be calculated with the help of present value of annuity function

Q: Given the financial data in the table below for two mutually exclusive alternatives, determine the…

A: The internal rate of return method considers the time value of money, the initial cash…

Q: Find the present value of 30 annual payments of $3,500 per annum where the first payment is made 11…

A: Number of Payment = n = 30Payment = p = $3500Time = t = 10Discount Rate = r = 19%

Q: A perpetuity pays $85 per year and costs $3,580. What is the rate of return? Select the correct…

A: Given:Annual Payment = $85Cost of the Perpetuity = $3,580

Q: Q5. At 5% annual interest, what is the difference in the present and future value of P100 paid at…

A: Given, Payment is P100 Rate is 5% Term is 10 years

Q: use excel to answer You have two options for paying your home insurance: 1) Pay $11,000 annually at…

A: The internal rate of return: The internal rate of return can be thought of as the interest rate…

Q: A payment stream that pays a continous rate of 1000+50t at time t is received from time 5 to 10…

A: Interest Rate till year 5 = 6% Interest rate between year 5-10 = 4% Cash flow equation = 1000 + 50*t…

Q: What is the present value of $170 a year for 3 years discounted back to the present at 3%?

A: Annual payment (P) = $ 170 Number of annual payments (n) = 3 Annual interest rate (r) = 3%

Q: Problem 1: Read each problem carefully and answer each question to solve the problem. Find the…

A: Period of deferral is the duration for which payments are not made in a deferred annuity.

Q: Use the following LIBOR-zero rates to find appropriate forward rates: period (years) LIBOR-zero…

A: 1) Forward rate for 6 months starting 6 months hence ie:Forward rate for 1…

Q: You have estimated spot rates as follows: r₁ = 6.10%, r₂ = 6.50 % , r3 = 6.80 %, r4 = 7.00%, r5 =…

A: Discounting factor can be calculated by using equation belowDiscounting factor = 1/(1+Spot…

Q: Use this chart to answer the following questions. Assume in every case that you make annual…

A: Base case contribution (A) = $3000 n = 25 years r = 7.5% per annum

Q: Given the down payment of P18,877 and annual payment of 28,657. The number of years is 20 years and…

A: Down payment (DP)= P 18,877 Annual payment (P)  = 28,657 Number of annual payments (n) = 20 Discount…

Q: how to use texas instrument TI-30XIIs calculator to find the savings plan balance? ex: Find the…

A: Compound = Monthly = 12Time = t = 3 * 12 = 36Interest Rate = r = 3 / 12 = 0.25%Monthly Payment = p =…

Q: What is the present value of the following future amounts? a. $800 to be received 10 years from now…

A: Summary of information Case Future value Period in years Discount rate a 800 10 10% b 300 5…

Q: 28. P 6000 is borrowed for 75 days at 18% per annum. How much will be due at the end of 75 days? Use…

A: Simple interest refers to the method that is used for calculating the amount of interest on a…

Q: Answer the following questions: TIME VALUE OF MONEY years. What is the investment's FV at rates of…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: A fırm is considering the following alternatives, each with a five year life. What is the IRR of the…

A: The Internal rate of return is a capital budgeting metric which is used to measure the return on…

Q: Plan X: $50,000 Payments at the end of every year for 30 years. Plan Y: $50,000 Payments at the…

A: We have an annuity due and an annuity immediate. We have to find their PVs and FVs and then compare.

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.