) The market value of fund assets is $100,000 and the projected value of liabilities is 200,000. The asset and liability modified durations are 12 and 10 years. Evaluate the funding gap interest rate risk of the firm. Describe how the liability-driven investments triggered the UK pension crisis in 2022.

) The market value of fund assets is $100,000 and the projected value of liabilities is 200,000. The asset and liability modified durations are 12 and 10 years. Evaluate the funding gap interest rate risk of the firm. Describe how the liability-driven investments triggered the UK pension crisis in 2022.

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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Please show complete steps all parts or skip it
show clearly the calculations for the pay back period for each project
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An investment advisor has recommended a R50,000 portfolio containing assets R, J, and K; R25,000 will be invested in asset R, with an expected annual return of 12 percent; R10,000 will be invested in asset J, with an expected annual return of 18 percent; and R15,000 will be invested in asset K, with an expected annual return of 8 percent. What is the expected annual return of this portfolio? What is the correct answer? A. 12.01% B. 12.00% C. 11.98% D. 12.93%
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company is considering three independent projects for October 2021. The three projects are project X, project Y and project Z. Given the following cash flow information, calculate the payback period for each. If the company requires a 3-year payback before an investment can be made, which project(s) would be accepted? Year Project X ($) Project Y ($) Project Z ($) O (Investment) -2,000 -$10,000 -$5,000 1. -2,000 -6,000 -2,000 800 4,000 5,000 3 600 3,000 5,000 4 600 2,000 5,000 400 2,000 2,000
An investment will pay $21,600 at the end of the first year, $31,600 at the end of the second year, and $51,600 at the end of the third year. (FV of $1. PV of $1. EVA of $1, and PVA of $1) Note: Use the appropriate factor(s) from the tables provided. Required: Determine the present value of this investment using a 9 percent annual interest rate. Note: Round your intermediate calculations and final answer to nearest whole dollar. Present value of investment
ABM Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investment amount - 450,000 (2022) Dividends / Revenue stream - 100,000 for the first year and an interval of 5,000 for the succeeding years Discount rate - 14% a. NPV for the perio 2023 through 2029; b. Total NPV using manual computation; c. Total NPV using the Excel function; and d. IRR rate.
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You have HK$10,000,000 for a particular investment fund. Suppose the fund pays you interest monthly at interest rate of 24% p.a. The term of the fund is similar to time deposit compounded monthly. What is the Annual Equivalent Rate? For how long this investment doubles?
Cross Ltd has bought an asset with a life span of 4 years. At the end of the 4 years, replacement of the asset will cost GH¢12,000. In this direction, the company has decided to provide for the future commitment by setting up a sinking fund account into which equal annual investment will be made at the end of each year. Interest rate on the investment will be 12% per annum. Required:i. Calculate the annual instalmentsii. Draw up the sinking fund schedule to show the growth fundiii. Assuming the first payments will be made now and 12 months thereafter, what are the annualpayments? You are required to draw up the sinking fund schedule .
An investor is considering two investment projects. Project A requires an initial payment of £15,000. In return, the investor will receive a payment of £19,600 after one year. Project B requires an initial payment of £10,700. In return, the investor will receive a payment of £1,210 at the end of every month for one year. Calculate the cross-over rate of the projects 数字 Enter a percentage correct to 1 decimal place. % What is the payback period of each project? Project A: Project B:数字 months months

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