Question One: Loans

Citi Bank will loan Arena Corp $12,000,000 for 10 years at an APR of 4%. The bank will accept a repayment schedule of equal, end of the month payments (interest compounded monthly). The Finance Director has asked you to choose the best loan payment option for the company.

Part A: Calculate the total amount of interest that Arena Corp will pay for:

[Rounding instructions: for workings andcalculations, please use five decimal places for interest rate calculations, that is, for an interest rate of 0.6666666%, round it tofivedecimal places as '0.00667' [If Excel is used, you could use "=ROUND" function to round a figure.Where applicable, round yourfinalanswers totwodecimal places.]

a)Refer to the above amortized loan, set up an amortization table using Excel.For each period involved, your table should display the time period, loan balance, periodic repayment, interest expense and principal repayment.

Insert your Excel sheet here:

b)Briefly comment and explain the figure on the final balance of your loan at the end of the loan period.

comment and explanation here:

Question Four: Mini Research on Stock and Return

Search online for Auckland International Airport's (AIA.NZ)dailystock price for the most recent twelve months (for example from April 28, 2019 to April 28, 2020).

a)Download Auckland International Airport's (AIA.NZ)dailyclosing price (you could use the "adjusted closing price") for the most recent twelve months.Save the data in an Excel file to perform the following calculations.

b)Clearly state the data source and weblink.

State the source link here:

c)Calculate the daily return (rate of change) of the above downloaded stock prices.

Present the formula here (save your Excel sheet for the task in Part (d) and then insert it in Part (d)):

d)Based on your calculated daily rate of return from Part (c), identify the largest rate of negative change (in percentage; that is, of highest volatility).In your Excel spreadsheet, highlight this row/cell with a yellow shade.

Insert your Excel sheet here (this should include your calculation from Part (c)):

Clearly state here the date, beginning price and ending price, and the percentage of change: (2 marks)

Date:__________

Beginning price:__________

Ending price:__________

Change in percentage: __________

e)identify and discuss the possible major cause(s) of this negative return.

Present your answer and discussion here: