Charlotte borrowed $1 000 000 from FIFA Bank for one year at simple interest rate of...
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Charlotte borrowed $1 000 000 from FIFA Bank for one year at simple interest rate of 6.65 % p.a. Unfortunately, she misread the documentation for the loan, and has misunderstood the interest charge. In fact, FIFA Bank will charge her interest (in a single payment at the end of the loan) at a rate of 6.65% p.a., compounded half-yearly. What additional amount will Charlotte have provide to repay the loan, due to this misunderstanding? Tameka purchased a Treasury bond with a coupon rate of 2.53% p.a., payable half-yearly, and face value of $100. The maturity date of the bond is 15 April 2029. (a) Kyah plans to purchase Tameka's Treasury bond on 13 April 2018. What price will Kyah pay (rounded to four decimal places)? Assume a yield of 4.94% p.a., compounded half-yearly. (b) In fact, Kyah purchased Tameka's bond on 4 February 2018. What was Kyah's purchase price (rounded to four decimal places)? Assume a yield of 4.94% p.a., compounded half-yearly. Emily has borrowed $1 000 000 from MQ Bank for 10 years at an interest rate of j2=3.51% p.a. She will make 10 annual repayments. According to the loan agreement, Emily's repayments will be $93 000 for the first two years followed by payments of X per year for the remaining eight years. This loan needs to be fully repaid by the end of 10 years. (a) Assume that all annual repayments will be paid at the end of each year (the first payment will be at the end of the first year), what is the value of Emily's annual payment amount, X (rounded to four decimal places)? Charlotte borrowed $1 000 000 from FIFA Bank for one year at simple interest rate of 6.65 % p.a. Unfortunately, she misread the documentation for the loan, and has misunderstood the interest charge. In fact, FIFA Bank will charge her interest (in a single payment at the end of the loan) at a rate of 6.65% p.a., compounded half-yearly. What additional amount will Charlotte have provide to repay the loan, due to this misunderstanding? Tameka purchased a Treasury bond with a coupon rate of 2.53% p.a., payable half-yearly, and face value of $100. The maturity date of the bond is 15 April 2029. (a) Kyah plans to purchase Tameka's Treasury bond on 13 April 2018. What price will Kyah pay (rounded to four decimal places)? Assume a yield of 4.94% p.a., compounded half-yearly. (b) In fact, Kyah purchased Tameka's bond on 4 February 2018. What was Kyah's purchase price (rounded to four decimal places)? Assume a yield of 4.94% p.a., compounded half-yearly. Emily has borrowed $1 000 000 from MQ Bank for 10 years at an interest rate of j2=3.51% p.a. She will make 10 annual repayments. According to the loan agreement, Emily's repayments will be $93 000 for the first two years followed by payments of X per year for the remaining eight years. This loan needs to be fully repaid by the end of 10 years. (a) Assume that all annual repayments will be paid at the end of each year (the first payment will be at the end of the first year), what is the value of Emily's annual payment amount, X (rounded to four decimal places)?
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SOLUTION To calculate the additional amount Charlotte will have to provide to repay the loan due to ... View the full answer
Related Book For
Contemporary Business Mathematics With Canadian Applications
ISBN: 9780135285015
12th Edition
Authors: Ali R. Hassanlou, S. A. Hummelbrunner, Kelly Halliday
Posted Date:
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