help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working! The Investments Fund sells Class A shares with a front-end load of 6% and Class C shares with 12b-1 fees of 0.75% annually as well asback-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolio (until the fifth year). Assume that youhave $1,000 to invest and the portfolio rate of return net of operating expenses is 11% annually.Required:a-1. If you invest in each fund and sell after 4 years, how much will you receive from each sale?a-2. Are Class A or Class C shares the better choice for you?b-1. If you invest in each fund and sell after 15 years, how much will you receive from each sale?b-2. Are Class A or Class C shares the better choice for you?Answer is complete but not entirely correct.Complete this question by entering your answers in the tabs below.Req A1Req A2Req B1Req B2If you invest in each fund and sell after 4 years, how much will you receive from each sale?Note: Do not round intermediate calculations. Round your answers to 2 decimal places.AmountsClass A$1,426.99Class C$1,447.91

Step 1: Class A Initial investment: $1,000 Front-end load for Class A: 6% Amount invested after…

Answered: The Investments Fund sells Class A…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 21PROB

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The Investments Fund sells Class A shares with a front-end load of 4.5% and Class B shares with 12b-1 fees of 1% annually as well as back-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolo (untill the fifth year). Assume that you have $1,000 to invest and the portfolio rate of return net of operating expenses is 15% annually. a-1. If you invest in each fund and sell after 4 years, how much will you receive from each sale? (Round your answers to 2 decimal places.) Amounts Class A Class B a-2. ass B shares better for you? Class A O Class B b-1. If you invest in each fund and sell after 15 years, how much will you receive from each sale? (Round your answers to 2 decimal places.) Amounts Class A Class B b-2. Are Class A or Class B shares the better choice for you? O Class A O Class B
The Investments Fund sells Class A shares with a front-end load of 5% and Class B shares with 12b-1 fees of 0.5% annually as well as back-end load fees that start at 5% and fall by 1% (percentage point) for each full year the investor holds the portfolio (until the fifth year). Assume that you have $1,000 to invest and the portfolio rate of return net of operating expenses is 13% annually.a. If you invest in each fund and sell after 4 years, are Class A or Class B shares the better choice for you? Class A Class B b. If you invest in each fund and sell after 12 years, are Class A or Class B shares the better choice for you? Class A Class B
Subject :- Finance
The Investments Fund sells Class A shares with a front-end load of 5% and Class B shares with 12b-1 fees of 1% annually as well as back-end load fees that start at 5% and fall by 1% (percentage point) for each full year the investor holds the portfolio (until the fifth year). Assume that you have $1,000 to invest and the portfolio rate of return net of operating expenses is 12% annually. a. If you invest in each fund and sell after 4 years, how much will you receive from each sale? b. If you invest in each fund and sell after 10 years, how much will you receive from each sale?
4-The Investments Fund sells Class A shares with a front-end load of 6% and an MER of 1% ADMN3700 HW1 3 annually, and Class B shares with an MER of 1.75% annually as well as back-end load fees that start at 5% and fall by 1% for each full year the investor holds the portfolio (until the fifth year). Assume the portfolio rate of return before operating expenses is 13% annually and you have $1,000 to invest in each Class of shares. a-1. If you invest in each fund and sell after 4 years, how much will you receive from each sale? a-2. Are Class A or Class B shares the better choice for you? b-1. If you invest in each fund and sell after 14 years, how much will you receive from each sale? b-2. Are Class A or Class B shares the better choice for you?
3. Assume you purchased a bond for $9,186. The bond pays $300 interest every six months. You sell the bond after 18 months for $10,000. Calculate the following: a. Income. b. Capital gain (or loss). c. Total return in dollars and as a percentage of the original investment. Review Only Click the icon to see the Worked Solution. a. The current income is $ (Round to the nearest dollar.) b. The capital gain (or loss) is $ (Enter a loss as a negative number and round to the nearest dollar.) c. The total return in dollars is $ (Round to the nearest dollar.) The total return as a percentage of the original investment is %. (Enter as a percentage and round to two decimal places.)
You are given the following information concerning a noncallable, sinking fund debenture: Principal: $1,000 Coupon rate of interest: 7 percent Term to maturity: 12 years Sinking fund: 3 percent of outstanding bonds retired annually; the balance at maturity If you buy the bond today at its face amount and interest rates rise to 12 percent after five years have passed, what is your capital gain or loss? Assume that the bond pays interest annually. Use Appendix B and Appendix D to answer the question. Use a minus sign to enter the loss amount, if any, as a negative value. Round your answer to the nearest dollar. $ If you hold the bond 12 years, what do you receive at maturity? -Principal or All coupon payments? What is the bond's current yield as of right now? Round your answer to the nearest whole number. % Given your price in a, what is the yield at maturity? Round your answer to the nearest whole number. % What proportion of the total debt issue is retired by the…
Suppose that a portfolio management company manages an investment fund. The fund manager observes a bond in the market and intends to add it to the fund portfolio. The bond has a 100.000 TL par value, 10% coupon rate (coupon payments are annual) and a 2-years maturity. The business model is to “hold-until-maturity”. The company purchases the bond at the beginning of the year when the market yields are 12%. After exactly 1 year of investment, market yields increase to 14%. What would be the approximate profit or loss amount in the income statement for that 1-year period? A) 1.723 TL loss B) 10.191 TL profit C) 9.871 TL profit D) 1.594 TL loss E) OTHER
You manage a pension fund that will provide retired workers with lifetime annuities. You expect a large number of workers to retire in 8 years. You have the following two bonds to invest in and immunize this portfolio. Inputs Bond A Bond B Settlement date 01-01-2020 01-01-2020 Maturity date 01-01-2025 01-01-2040 Coupon rate 0.025 0.0000 Face Value $1,000.00 $1,000.00 Coupons per year 1 1 Obligation Time to Payout 8 Payout $50,000,000 Initial Yield to Maturity 0.0750 Required: Using any necessary data above, calculate the Present value and Macaulay Duration of the obligation. Assume annual payments. Then calculate the Macaulay Duration and the Modified Duration for each bond. Use this information to immunize the portfolio. Then, re-immunize the portfolio 1 year later using the new yield.
You're considering an investment in 10-year, $1,000 face value bonds that pay 8.50% annually and sell for $1,033.55. If you do make the purchase, how much will you earn? Select one: O a. 8.00% O b. 8.50% Oc. 7.59% Od 8.25% Oe. 8.86% Clear my choice A
1,Suppose you want to invest php 450,000 with the SEA FUND. Suppose also that at the time you made the investment, the SADS for this particular equity fund is php 4,3267. 2. Determine the return for the buyer of a 7- year, 3% bond of php 500,000 face value if on the date is issued it is purchased from its original owner for php 450,000.
Pension funds pay lifetime annuities to recipients. If a firm will remain in business indefinitely, the pension obligation will resemble a perpetuity. Suppose, therefore, that you are managing a pension fund with obligations to make perpetual payments of $1.8 million per year to beneficiaries. The yield to maturity on all bonds is 11.0%. Required: a. If the duration of 5-year-maturity bonds with coupon rates of 8.5% (paid annually) is four years and the duration of 20-year-maturity bonds with coupon rates of 4% (paid annually) is 11 years, how much of each of these coupon bonds (in market value) will you want to hold to both fully fund and immunize your obligation? Note: Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places. b. What will be the par value of your holdings in the 20-year coupon bond? Note: Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. a. 5 year bond a. 20 year bond b. Par…

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