Euphemia wants to take a holiday to the Cook Islands, two years from now, once the coronavirus pandemic is well and truly over. She wants to save up $6,000 for this trip. How much does she need to deposit into her bank today to achieve this goal, if the bank pays an interest rate of 7.2% per annum, compounded monthly? Select one: a $5,299.90 b. $5,177.01 c. $5.308.29 d. $5,197.56 In early April 2020 Australian 15-year government bonds were trading at a yield-to-maturity of 1.10% p.a., compounding semi-annually. The bonds have a coupon rate of 2.75% p.a., paid semi-annually. Suppose that in one year's time 15-year Australian Government bonds (also with a coupon rate of 2.75% p.a., paid semi-annually), are trading at a yield-to-maturity of 1.60% p.a., paid semi-annually. The percentage change in the price of 15- year government bonds over this one year will be Select one: a. 6.1% b. 4.1% c. 3.1% d. 5.1% A risky venture has the following probability distribution for its outcome 10% with probability 20% 12% with probability 50% 15% with probability 30% Thus its expected return is 12.5%. What is the standard deviation of the risky venture? Select one: a. 3.251% b. 2.803% c. 1.251% d. 1.803% government bonds issued. Assuming other factors remain the same, what is most likely to happen to the market yield on As a result of a budget deficit increase, there was a corresponding increase in the amount government bonds under this scenario? Select one: a. yields will not be affected. b. yields will rise c. yields will fall. d. the answer cannot be determined. In light of the impact of the coronavirus pandemic, Kalbarri Mutual Bank in Western Australia, would like to set up a reserve fund. The fund will earn an interest rate of 4% per annum. If the fund pays a fixed amount of $20 million to the bank annually for an infinite period, starting two years from today, how much does the bank need in the fund today? Select one: a. $444.5 million b. $480.8 million c. $500.0 million d. $520.0 million