1. Mr. Wang received a zero-coupon bond with a face value of 100 and time to maturity...
Question:
1. Mr. Wang received a zero-coupon bond with a face value of ¥100 and time to maturity of 5 years. How much is the bond worth now if the risk-adjusted market interest rate for the bond is 10%?
2. Ms. Zhou is considering whether to invest in a long-term fixed deposit. The fixed deposit account pays 9% interest annually. How long does Ms. Zhou need to wait to double the investment in the fixed deposit account? Hint: You can use the rule of 72
3. The APR (Annual Percentage Rate) on your savings account is 8% per year, compounding quarterly. How much will you have in your savings account at the end of the year, if you put ¥100 in the account now, at the beginning of the year?
Introduction to Operations Research
ISBN: 978-1259162985
10th edition
Authors: Frederick S. Hillier, Gerald J. Lieberman