Question: please solve these two problems without using excel and show all steps. Question No.11 Using the following table of spot rates, calculate the total value
Question No.11 Using the following table of spot rates, calculate the total value at time 5 of the following three cash flows: 2,000 at time 0 2,000 at time 2 2,000 at time 4 Assume that the cash flows at time 2 and at time 4 are invested at today's forward rates. Term (years) 1 2 3 4 5 Spot rate 6.00% 6.10% 6.40% 6.80% 7.50% A. 7,629 B. 7,729 C. 7,829 D. 7,929 E. 8,029 Question No.12 A deposit of 1,000 is made to a fund at time 0. The fund grows at a force of interest 8 The amount of interest earned from time 1 to time 5 is 500. Find k. +k A. 6 B. 7 C. 8 D. 9 E. 10 Question No.11 Using the following table of spot rates, calculate the total value at time 5 of the following three cash flows: 2,000 at time 0 2,000 at time 2 2,000 at time 4 Assume that the cash flows at time 2 and at time 4 are invested at today's forward rates. Term (years) 1 2 3 4 5 Spot rate 6.00% 6.10% 6.40% 6.80% 7.50% A. 7,629 B. 7,729 C. 7,829 D. 7,929 E. 8,029 Question No.12 A deposit of 1,000 is made to a fund at time 0. The fund grows at a force of interest 8 The amount of interest earned from time 1 to time 5 is 500. Find k. +k A. 6 B. 7 C. 8 D. 9 E. 10
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