EBK EXCELLENCE IN BUSINESS COMMUNICATIO
11th Edition
ISBN: 9780133544350
Author: BOVEE
Publisher: YUZU
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Chapter 8, Problem 8.6dE
Summary Introduction
To determine:
A more direct and concise positive message.
Introduction:
Choosing a better concise statement and rewriting “In today’s meeting, we were happy to have the opportunity to welcome Paul Eccelson, who reviewed the shopping cart function on our website and offered some great advice; if you have any questions about these new forms, feel free to call him at his office”.
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An insurance company has liabilities of £7 million due in 10 years' time and
£9 million due in 17 years' time.
The assets of the company consist of two zero-coupon bonds, one paying
£X million in 7 years' time and the other paying £Y million in 20 years' time.
The current interest rate is 6% per annum effective.
Find the nominal value of X (i.e. the amount, IN MILLIONS, that bond X pays
in 7 year's time) such that the first two conditions for Redington's theory of
immunisation are satisfied.
Express your answer to THREE DECIMAL PLACES.
An individual is investing in a market where spot rates and forward rates
apply.
In this market, if at time t=0 he agrees to invest £5.3 for two years, he will
receive £7.4 at time t=2 years. Alternatively, if at time t=0 he agrees to invest
£5.3 at time t=1 for either one year or two years, he will receive £7.5 or £7.3
at times t=2 and t=3, respectively.
Calculate the price per £5,000 nominal that the individual should pay for a
fixed-interest bond bearing annual interest of 6.6% and is redeemable after 3
years at 110%. State your answer at 2 decimal places.
The one-year forward rates of interest, f+, are given by:
.
fo
= 5.06%,
f₁ = 6.38%, and
f2
= 5.73%.
Calculate, to 4 decimal places (in percentages), the three-year par yield.
Chapter 8 Solutions
EBK EXCELLENCE IN BUSINESS COMMUNICATIO
Ch. 8 - Prob. 1LOCCh. 8 - Prob. 2LOCCh. 8 - Prob. 3LOCCh. 8 - Prob. 4LOCCh. 8 - Prob. 5LOCCh. 8 - Prob. 6LOCCh. 8 - Prob. 7LOCCh. 8 - Prob. 8LOCCh. 8 - Prob. 9LOCCh. 8 - Prob. 10LOC
Ch. 8 - Prob. 11LOCCh. 8 - Prob. 12LOCCh. 8 - Prob. 13LOCCh. 8 - Prob. 14LOCCh. 8 - Prob. 15LOCCh. 8 - Prob. 16LOCCh. 8 - Prob. 17LOCCh. 8 - Prob. 8.1AYKCh. 8 - Prob. 8.2AYKCh. 8 - Prob. 8.3AYKCh. 8 - Prob. 8aPYSMFACh. 8 - Prob. 8bPYSMFACh. 8 - Prob. 8cPYSMFACh. 8 - Prob. 8dPYSMFACh. 8 - Prob. 8.4aECh. 8 - Prob. 8.4bECh. 8 - Prob. 8.4cECh. 8 - Prob. 8.5aECh. 8 - Prob. 8.5bECh. 8 - Prob. 8.5cECh. 8 - Prob. 8.5dECh. 8 - Prob. 8.6aECh. 8 - Prob. 8.6bECh. 8 - Prob. 8.6cECh. 8 - Prob. 8.6dECh. 8 - Prob. 8.7ECh. 8 - Prob. 8.8ECh. 8 - Prob. 8.9ECh. 8 - Prob. 1EYSCTPCh. 8 - Prob. 1SYCKO
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