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Elco Bank, UAE, has total investments of AED 3.6 billion as of 31st December 2020. The Bank shows Investment Market Value a total of AED

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Elco Bank, UAE, has total investments of AED 3.6 billion as of 31st December 2020. The Bank shows Investment Market Value a total of AED 1.842 billion in Long term Bonds of issued by Government of UAE @4% fixed yield. An amount of AED 0.9746 billion was shown Investment value in US Bond Markets @ 2.5% market yield. An amount of AED 0.3842 billion was shown as Investment Value in US Equity Markets. The balance amount shown as Investment Value in equity shares spread across stock markets in China, India and Brazil, in the ratio of 30%, 40% and 30% respectively. Answer the following: a) On 1st May 2021 US interest rates increased by 0.25. What would be the Investment Value of Elco Bank as on 1st May 2021, assuming other things being equal b) On 10th May 2021, Elco bank learns that all the compnay's stocks they have invested in Brazil, filed for Bankruptcy, due to COVID, and as their debts are huge, all the equity shareholders will get nothing. What would be the equity valuation of Stock Markets for ELCO Bank, other than US Markets, assuming other things being equal, as on 10th May 2021. c) Elco Bank expects that their financial performance will come down for 31st December 2021 by 22%, due to COVID, and accordingly will like to bring down the total Investments value by the same percentage, for 31 December 2021 from the figure of 31st December 2020. What would be the total investments value as on 31st December 2021? (Assume all other things being equal) i B 1 15 % CM 5 hip

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