Question
i need just the answers of the following questions asap.......... i am doing the paper and i have just two hours to submit it...... Question
i need just the answers of the following questions asap.......... i am doing the paper and i have just two hours to submit it......
Question no 45
You wish to retire in 27 years, at which time you want to have accumulated enough money to receive an annuity of $23,000 for 20 years after retirement. During the period before retirement you can earn 9% annually, while after retirement you can earn 5% on your money. What annual contributions to the retirement fund will allow you to receive the $23,000 annuity?
| a. | $2,987.14 | |
| b. | $2,535.91 | |
| c. | $2,380.23 | |
| d. | $2,790.32 |
QUESTION 47
The spot rate between Swiss and the U.S. is SF2.1 = $1, while the 1-year forward rate is SF1.9 = $1. The risk-free rate in Swiss is 4%. The risk-free rate in the U.S. is 6%. How much profit can you earn on a loan of $5,000 by utilizing covered interest arbitrage?
| a. | $348.41 | |
| b. | $83.26 | |
| c. | $61.58 | |
| d. | $447.37 |
QUESTION 49
Suppose in New York, the Japanese yen exchange rate is 104 = $1, and the British pound exchange rate is 1 = $1.69. In London, 1 costs 179. How much profit can you earn on $3,400 using triangle arbitrage?
| a. | $145.54 | |
| b. | $74.25 | |
| c. | $62.68 | |
| d. | $130.56 |
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The New Public Finance
Authors: Inge Kaul, Pedro Condeicao
1st Edition
0195179978, 978-0195179972
