She hands an investment portfolio (in Singapore Dollar, SGD) to you and seeks your help to identify the category of each financial asset and have their characteristics explained. She also needs the current value of each financial asset so that she can report to her manager later. Veronica's client data:

 (a) Hypothesise and categorise the above-mentioned financial assets, whether the asset is a Stock (with forecasted dividends), Floating Rate Notes, Fixed Deposit, Zero Coupon Bond or Fixed Rate Bond. After categorising, provide descriptions on the feature of each asset class/category. (10 marks)

 (b) Solve for the present value for each financial asset using the relevant Microsoft Excel function. Show your use of function with the inputs (e.g., =PV($A$1, $B$1,,C1). You may use the FORMULATEXT() function in Excel). All answers should be expressed in the relevant currency and round-off to two (2) decimal places. (5 marks) 

(c) To help Veronica to convince her manager of the accuracy of the computation, verify all the answers in Question 1(b) using the formula approach and show your formula with the inputs. All answers should be expressed in the relevant currency and round-off to two (2) decimal places. 

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Veronica's client data: A 1 Cost of Borrowing 2 Yield Curve is flat 3 4 (at end of period) B C 2.00% E 5 Years Asset 1 Asset 2 Asset 3 Asset 4 Asset 5 6 1 $0 $1,500 $1,250 $0 7 2 So $1,500 $300 $1,600 $0 8 3 $0 $1,500 $1,800 $0 9 4 $100,000 $101,500 $400 $102,000 $109,000 Veronica's client data: A 1 Cost of Borrowing 2 Yield Curve is flat 3 4 (at end of period) B C 2.00% E 5 Years Asset 1 Asset 2 Asset 3 Asset 4 Asset 5 6 1 $0 $1,500 $1,250 $0 7 2 So $1,500 $300 $1,600 $0 8 3 $0 $1,500 $1,800 $0 9 4 $100,000 $101,500 $400 $102,000 $109,000

Answer rating: 100% (QA)

Asset 1 1500 with Stock forecasted dividends Category Stock Description A stock represents ownership ... View the full answer