Qin Jiushao deposits 1, 000 into a fund on January 1, 2020 and then another eposit of unknown amount into the fund on July 1, 2020. On January 1, 2021, the alance in the fund is 2,000. Noting that the time-weighted yield rate is 10% and the ollar-weighted yield rate is 9%, calculate the annual effective interest rate earned on he fund during the first six months of 2020.

Qin Jiushao deposits 1, 000 into a fund on January 1, 2020 and then another eposit of unknown amount into the fund on July 1, 2020. On January 1, 2021, the alance in the fund is 2,000. Noting that the time-weighted yield rate is 10% and the ollar-weighted yield rate is 9%, calculate the annual effective interest rate earned on he fund during the first six months of 2020.

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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A closed-end fund starts the year with a net asset value of $12. By year-end, NAV equals $12.10. At the beginning of the year, the fund is selling at a 2% premium to NAV. By the end of the year, the fund is selling at a 7% discount to NAV. The fund paid year-end distributions of income and capital gains of $1.50. Required: a. What is the rate of return to an investor in the fund during the year? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Rate of return % b. What would have been the rate of return to an investor who held the same securities as the fund manager during the year? (Round your answer to 2 decimal places.) Rate of return %
Note: d is a nominal rate so to avoid confusion you may want to write this as d^(4) first.
At the beginning of the year, an investment fund was established with an initial deposit of 500 . A deposit 1000 is made at the end of each month for the first six months. Starting from theend of month 7, a withdrawal of 300 is made at the end of each month for 5 months for a total of 5 withdrawals. The amount in the fund at the end of the year is 12,500. Calculate the dollar-weighted(money-weighted) yield rate earned by the fund during the year.
Qla) Determine the amount to be deposited in a fund now that earns 9% per year to provide for eight end of year withdrawals of RM187.45 each? Include the cash flow diagram in your calculation.
On September 1, 2010, you decided to put $ 10000 in a money market fund. On March 1, 2015, you deposit another $ 12000 and on January 1, 2018, you added another $ 14000. This fund pays interest at the annual rate of 7.2%, compounded monthly. Find the future value of the fund on January 1, 2018, just before the third deposit. a. $ 34372.59 b. $ 35346.46 c. $ 31635.26 d. $ 35257.40 e. $ 34877.29
An investor pays the following separate amounts into a fund: £12,100 at t=7 years, £17,900 at t=13 years and £12,300 at t=28 years. The fund pays an effective quarter-yearly rate of discount of 2.3% during the first 7 years and an effective half-yearly rate of interest of 4.9% for the remaining period until the end of year 28. Assuming that no withdrawals are to be made throughout the entire term of this investment, calculate the present value of the fund (correct answer = 12422.19, no tables, only formulas, please)
Consider an amount of 25,000 in a fund today, October 25, 2022. Determine its value on Oct. 25, 2019 at 4.32% annual effective interest rate
Leon Inc. will deposit $53,700 in a 15% fund at the end of each year for 10 years beginning December 31, 2020. Click here to view factor tables What amount will be in the fund immediately after the last deposit? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, eg. 458,581.) Amount in fund %$4
Sean's investment of $81,400.00 in a fund matured to $155,777.80 in 8 years. If the interest in the fund is compounded semi-annually, calculate the following rounded to two decimal places. a. Periodic interest rate (i)(i) % b. Nominal interest rate (j)
On August 5th, 2013, Joseph invested $14,000 in a fund that was growing at 6% compounded semi-annually. a. Calculate the future value of the fund on March 15th, 2014. Round to the nearest cent b. On March 15th, 2014, the interest rate on the fund changed to 5% compounded monthly. Calculate the future value of the fund on March 26th, 2015. Round to the nearest cent
Imagine you have 100,000 worth in a fund today November 15, 2022. Give enough of it on the due date and at the corresponding interest rate.a.) At an effective discount rate of 3.24% on Nov. 15, 2020.b.) At an effective discount rate of 3.24% on Feb. 15, 2024.c.) At an interest rate of 8.4% payable monthly on Sept. 15, 2021.d.) At an discount rate of 3% convertible quarterly on May 15, 2025.
On 1 January 2019, you invested £100 in a fund. A further £50 was invested on 1 January 2020. The values of the funds were: Date Fund Value (in £) 31 Dec 31 Dec 31 Dec 2018 2019 2020 0 105 242 Calculate the money-weighted rates of return over the period 1 January 2019 to 31 December 2020. Give your answer to 3 decimal places.

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