.. kindly Answer correctly
Assume that a five-year, government-issued coupon bond at par value NOK 100,000 and 10% coupon rate was issued today. The bond pays one annual coupon at the end of each year, while the par value is redeemed exactly five years from today including the last coupon payment. In the market, the bond is considered default-free. Government-issued, zero-coupon bonds (Bo,r) with maturities ranging from exactly one to five years from today (T = 1, 2, ...,5) are currently trading at the NOK-prices listed below. Assume that the bonds are default-free. Maturity Market price 1 year 93,023.16 2 year 84,167.99 3 year 75,131.42 4 year 67,073.49 5 year 60,017.97 To the following questions, please provide numerical answers based on the unbiased expectations theory of the term structure of interest rates: (a) (7 points) Calculate the current, risk-free spot-rates for one, two, three, four, and five years from today. (b) (7 points) Calculate the one-year forward rates for year two, year three, year four and year five. (c) (8 points) Calculate the equilibrium market price of the five-year, government-issued coupon bond issued today. (d) (8 points) What must be the equilibrium rate of interest on a one-year investment (or loan) in year five?Consider the following statements made about EBCT Model 1. (a) represents the 'true' risk premium for a given risk. (b) The variance of X; 0 doesn't depend on 0. (c) None of the random variables or parameters in the model are assumed to have a normal distribution. Explain whether each of these statements is true or false. The table below shows the aggregate claim amounts (in fm) for an international insurer's fire portfolio for a 5-year period, together with some summary statistics. Aggregate claim amount, Year / 1 2 3 4 5 1 48 53 42 50 59 Country, 2 64 71 64 73 70 3 85 54 76 65 90 4 44 52 69 55 71 The volumes of business for each country for the insurer are as follows: Volume of business, Year / 1 2 3 4 5 6 1 12 15 13 16 10 20 Country, 2 20 14 22 15 30 25 3 5 6 12 4 10 4 22 35 30 16 10 12 Calculate the credibility premium for each country in Year 6 using EBCT Model 2.Project 1 1 Part 1 Using the inventory flow assumptions of weighted average, LIFO and FIFO calculate the inventory and cost of goods sold for an organisation with the following transactions and records and use the information to develop an inventory report/ comparison report. Present your calculations and any relevant assumptions in a report format suited to the financial services industry. The organisation's records show the inventory and the purchases to be: Opening inventory 350 units @ $25 Purchases December 1 300 units @ 530 February 17 500 units @ $28 April 21 250 units @ $35 June 6 300 units @ $35 The organisation has an opening inventory of 350 units and a closing inventory of 650. Sales figures for the period were $108 000. Summative assessment 2 Project 1 Part 1.xisx (11.4 KB) | Remove Upload a file (7MB max) 2 Part 2 a. Describe the procedures you would follow in a work organisation, to determine and confirm work requirements, in particular those relevant to this task. b. Make a verbal presentation of the inventory report/ comparison report you developed, to demonstrate your communication skills. Use language and concepts appropriate to cultural differences and demonstrate your ability to share information that is clear, concise and accurate. You can use Power Point slides, charts or any other presentation aids you require and you might choose to record your presentation. Submit the report, the presentation notes and any visual aids you used
