What is the relationship between the familywise and per
comparison error rates? What happens to the...
What is the relationship between the familywise and per
comparison error rates? What happens to the familywise error rate
as the number of comparisons increases?
What is the relationship between the value of an annuity and the
level of interest rates? Suppose you just bought a 10-year annuity
of$5,200 per year at the current interest rate of 10 percent per
year. What happens to the value of your investment if interest
rates suddenly drop to 5 percent? What if interest rates suddenly
rise to 15%? Please use excel to calculate.
Covered interest arbitrage and IRP. What is the relationship
between forward rates and interest rates? If ? = ? and ? ≠ ?, is
arbitrage possible?
a. Assume the following information:
You have $1,000 to invest:
Current spot rate of Australian dollar = $0.95
180-day forward rate of Australian dollar = $0.94
6-month deposit rate in U.S. = 4%
6-month deposit rate in Australia = 6%
If you use covered interest arbitrage for a 180-day investment,
what will be the...
Comparing Rates: The Effect of Compounding-
1- In general, what is the relationship between
a stated interest rate and an effective interest rate? Which is
more relevant for financial decisions?
2- What does continuous compounding mean?
Loan Types and Loan Amortization
3-What is a pure discount loan? An
interest-only loan?
4-What does it mean to amortize a loan?
5-What is a balloon payment? How do you
determine its value?
What is the relationship between the value of an annuity and
discount rates? suppose you bought a 20 year annuity of 4700 per
year at the current discount rate of 10 percent per year. what
happens to the value of your investment if the discount rate
suddenly drops to 5 percent? what if the discount rate suddenly
rises to 15 percent?
a)What is the expected relationship
between the relative real interest rates of two countries and the
exchange rate of their currencies?
b. Assume that the level of capital flows between
the U.S. and the country of Krendo is negligible (close
to zero) and will continue to be
negligible. There is a substantial amount of trade between the U.S.
and the country of Krendo and no capital flows. How will high
inflation and high interest rates affect the value of the...