Here the expected return will be ER =( 1/3 * 12) + (1/3 * 18) + (1/3 * 8) = 4 + 6 + 2.7 = 12.7%. you don't need correlation for calculating returns. It would be for portfolio standard deviation.
Here the expected return will be ER =( 1/3 * 12) + (1/3 * 18) + (1/3 * 8) = 4 + 6 + 2.7 = 12.7%. you don’t need correlation for calculating returns. It would be for portfolio standard deviation.
Breaking the problem in parts will help First determine how much he will need to fund his spending at the age of 66 years- N=30, I/y=6%, PMT=70000 solve for pv=963538 How much will he have based on his income structure- PV195000, i/y6%, N=16% cpt FV=495368 PV of payments made in 5 years PMT=10000, NRead more
Breaking the problem in parts will help
First determine how much he will need to fund his spending at the age of 66 years- N=30, I/y=6%,
PMT=70000 solve for pv=963538
How much will he have based on his income structure- PV195000, i/y6%, N=16% cpt FV=495368
PV of payments made in 5 years PMT=10000, N=5, I/Y=6%, cpt PV 42124 which will grow in 16 years to PV=42124, N=16, I/Y=6 cpt FV=107009
Thus extra fund to be required = 963538-107009-495396=361160
Thus payments to be made is N=11(since beginning period), FV= 361160, I/Y=6%, N=11, CPT PMT = 24122.94
YTM of the bond is 5.77% YT First Call is 6.25% YT Second call is 5.94% YT worst is 5.77% Since you didn't mention what to calculate I've answered every possible yields from this scenario.
YTM of the bond is 5.77%
YT First Call is 6.25%
YT Second call is 5.94%
YT worst is 5.77%
Since you didn’t mention what to calculate I’ve answered every possible yields from this scenario.
Equity valuation concept and basic tools
The answer should be c P0=D1/(re-g) P0= 1.50*1.105/(.18-.105) =22.1
The answer should be c P0=D1/(re-g)
P0= 1.50*1.105/(.18-.105) =22.1
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Here the expected return will be ER =( 1/3 * 12) + (1/3 * 18) + (1/3 * 8) = 4 + 6 + 2.7 = 12.7%. you don't need correlation for calculating returns. It would be for portfolio standard deviation.
Here the expected return will be ER =( 1/3 * 12) + (1/3 * 18) + (1/3 * 8) = 4 + 6 + 2.7 = 12.7%. you don’t need correlation for calculating returns. It would be for portfolio standard deviation.
See lessQm
Breaking the problem in parts will help First determine how much he will need to fund his spending at the age of 66 years- N=30, I/y=6%, PMT=70000 solve for pv=963538 How much will he have based on his income structure- PV195000, i/y6%, N=16% cpt FV=495368 PV of payments made in 5 years PMT=10000, NRead more
Breaking the problem in parts will help
First determine how much he will need to fund his spending at the age of 66 years- N=30, I/y=6%,
PMT=70000 solve for pv=963538
How much will he have based on his income structure- PV195000, i/y6%, N=16% cpt FV=495368
PV of payments made in 5 years PMT=10000, N=5, I/Y=6%, cpt PV 42124 which will grow in 16 years to PV=42124, N=16, I/Y=6 cpt FV=107009
Thus extra fund to be required = 963538-107009-495396=361160
Thus payments to be made is N=11(since beginning period), FV= 361160, I/Y=6%, N=11, CPT PMT = 24122.94
Pheww!!!!1
Callable Bond
YTM of the bond is 5.77% YT First Call is 6.25% YT Second call is 5.94% YT worst is 5.77% Since you didn't mention what to calculate I've answered every possible yields from this scenario.
YTM of the bond is 5.77%
YT First Call is 6.25%
YT Second call is 5.94%
YT worst is 5.77%
Since you didn’t mention what to calculate I’ve answered every possible yields from this scenario.
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The answer of Q3 is C. Collateral manager buys and sells securities in collateral pool in order to generate returns. The answer of Q4 is CDS.
The answer of Q3 is C. Collateral manager buys and sells securities in collateral pool in order to generate returns. The answer of Q4 is CDS.
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