Suppose the effective rate of interest is 4% per annum during 2010 and 2011, and 2.4695% per half year thereafter. Suppose also that the cashflows are • +100 on 1 January 2010 and on 1 January 2011 -20 on 1 July 2011, 1 January 2012 and 1 January 2013, -35 on 1 July 2013 and 1 January 2014. What is the net value of these cashflows on i) 1 January 2014? ii) 1 January 2010? iii) 1 July 2012?
Suppose the effective rate of interest is 4% per annum during 2010 and 2011, and 2.4695% per half year thereafter. Suppose also that the cashflows are • +100 on 1 January 2010 and on 1 January 2011 -20 on 1 July 2011, 1 January 2012 and 1 January 2013, -35 on 1 July 2013 and 1 January 2014. What is the net value of these cashflows on i) 1 January 2014? ii) 1 January 2010? iii) 1 July 2012?
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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