Which of the following investments has the highest annual percentage yield (APY)? (Assume that all CDs are of equal risk.) Bank A that pays 8 percent interest compounded quarterly. Bank B that pays 8 percent compounded monthly. Bank C that pays 8.25 percent annually Show your working to justify your decision.
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(d) Which of the following investments has the highest annual percentage yield (APY)? (Assume that all CDs are of equal risk.)
Bank A that pays 8 percent interest compounded quarterly.
Bank B that pays 8 percent compounded monthly.
Bank C that pays 8.25 percent annually
Show your working to justify your decision.
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- please keep 4 decimal pointsAssume you have the following asset and liability in your Balance Sheet:Asset - Bond AModified Duration = 2.6 yearsValue= RM1.5 millionAAFARLiability - Bond BModified Duration = 3.1 yearsValue= RM1.0 milliona. Calculate the duration gap. b. What is the expected change in Net Worth if interest increases by 1%?attachment. calculation step by stepAssume you have the following asset and liability in your balance sheet Asset - Bond AModified Duration = 1.5 yearsValue = RM1 million Liability - Bond BModified Duration 2.6 yearsValue = RM2 million a. Calculate the duration gaps?b. What is the expected change in Net worth if interest increases by 1%?c. What should or could you to achieve immunised balance sheet?
- Assume you have the following asset and liability in your Balance Sheet: Asset - Bond A Modified Duration = 2.6 years Value = RM1.5 million Liability - Bond B Modified Duration = 3.1 years Value = RM1.0 million a. Calculate the duration gap. b. What is the expected change in Net Worth if interest increases by 1%? c. What should or could you to achieve immunised balance sheet? Note: Please show all workings.Assume you have the following asset and liability in your Balance Sheet: Asset - Bond A Modified Duration = 2.6 years Value = RM1.5 million Liability - Bond B Modified Duration = 3.1 years Value = RM1.0 million a. Calculate the duration gap. b. What is the expected change in Net Worth if interest increases by 1%? Assume previous interest is 10% c. What should or could you to achieve immunised balance sheet? Note: Please show all workings.Which of the following investments that pay will $18,500 in 8 years will have a higher price today? The security that earns an interest rate of 8.50%. The security that earns an interest rate of 12.75%.
- financial risk management . Assume you have the following asset and liability in your Balance Sheet:Asset - Bond AModified Duration = 2.6 yearsValue= RM1.5 millionLiability - Bond BModified Duration = 3.1 yearsValue= RM1.0 million What is the expected change in Net Worth if interest increases by 1% ?Which of the following investments that pay will $9,500 in 14 years will have a lower price today? The security that earns an interest rate of 5.50%. The security that earns an interest rate of 8.25%.An investor has the opportunity to make an investment that will provide an effective annual yield of 13.0 percent. She is considering two other investments of equal risk that will provide compound interest monthly and quarterly, respectively. Required: a. What must be the equivalent nominal annual rate (ENAR) for an investment that will provide compound interest monthly to ensure that an equivalent annual yield of 13.0 percent is earned?b. What must be the equivalent nominal annual rate (ENAR) for an investment that will provide compound interest quarterly to ensure that an equivalent annual yield of 13.0 percent is earned? Note: For all requirements, do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places. Please answer fast i give you upvote.
- 3. Present Value of Annuity and Perpetuity - Show your steps! (You must simplify your answer use the formula for Geometric series.) 1 A bond with a face value of y pays out interest at rate r annually. The discount rate you should use for the bond is i. (That is, the present value of $1 received a year from now is $11, and the present value of 1 dollar received 2 years from now is $- .) What is the present value of owning the bond that pays its first interest a year from now if (a) The bond pays interest for n years and pays back the face value at the last year. (b) The bond pays interest forever and never pays back the face value. (1+i)²Which of the following has the highest interest rate? Select one: a. Corporate Bond O b. Government Bond c. Treasury Bills d. Callable Corporate Bond The ratio that is used to compare the market value between companies is Select one: a. Equity Muitiplier b. EPS c. P/E d. Profit margin You have 50,000BD which you can use to either buy cars or to deposit in a bank account for 1 year. Inflation for the year is estimated to be 7%, and the bank deposit rate is 4.5%. if you had a goal of purchasing as many cars as possible, when should you buy them? Select one: a. Now b. After a year c. After 2 years d. Not enough information to decideam. 78.