Step 1: Prepare Your Work You will be solving the problems in a Word Document, or in an Excel Spreadsheet. It is your choice (Word or Excel), but for this assignment, I will not accept handwritten work! Step 2: Identify Your Data The FIRST thing that should be included in your submission/document is a copy of the data you will be using. Your data set will involve the use of your student number, as well as a table of other variables. You must use Excel to create the data set by downloading this document and inputting the last six digits of your student number. You do not have to use Excel to complete your solutions if you don't want to! List this table of variables CLEARLY at the very top of your submission. Failure to do this will make it impossible to mark your work! if you are completing your work electronically, simply take a screenshot or copy. YOUR values into your document. - If you are completing your work on paper, write the FULL table at the top of your first page. THIS UST OF VARIABLES MUST BE STATED A FORE YOU COMPLETE ANY CALCULATIONS! Step 3: Solve Problems Read the 'Mini-Case' below which presents a real-world scenario for the applic financial mathematics concepts. Complete the calculations indicated in each part. For each calculation/part, be sure to show your work (the values used to answer along with any relevant information) and a final statement. Be sure you and professional throughout! Mini-Case PART A Owners of a new restaurant have found numerous costs associated with startir business (see table). They financed the total of these costs with end-of-month through a loan from the bank at {E} compounded {F}, amortized over {c} years 1. What is the size of the monthly payments required to settle this loan? 2. What is the principal balance outstanding on the loan after one year 3. What is the size of the final payment? 4. Construct a partial amortization schedule for this loan. PART B After two years in business, the owners have saved (have a surplus of) {H}. The they will invest in property or investment bonds. if they invest in a property and a vehicle the total cost will be {l), of which {H} w as a down payment The fixed Interest rate on the mortgaged amount is {u} cor las istede of exactly PART C If the owners choose to invest in bonds instead, they look at a {L) bond set to mature in {m} years with a bond rate of {N}, payable semi-annually. The market rate is {J}, compounded semi-annually. The owners will only purchase the bond if they can afford it with their savings ({H}), and they can get the bond at a discount because they think the market rate will go down, potentially making the bond more valuable in the future. 8. If the bond rate is {N}, will the bond be sold at a premium or a discount? Explain you answer. 9. Calculate the purchase price of the bond if it is purchased today ({M} years before maturity). 10. Do the owners have enough money to buy their bond? Will they make the purchase? Step 5: Presentation and Submission if it wasn't already clear, this ossignment should be presented professionally and clearly. It should be easy to find the appropriate answers to each problem. Display your solutions as though you were presenting them to your manager. You should be proud of what you have produced! Once you are nappy with your work, submit Lee (1) file to the Moodle Dropbox. Late assignments will not be accepted. Step 1: Prepare Your Work You will be solving the problems in a Word Document, or in an Excel Spreadsheet. It is your choice (Word or Excel), but for this assignment, I will not accept handwritten work! Step 2: Identify Your Data The FIRST thing that should be included in your submission/document is a copy of the data you will be using. Your data set will involve the use of your student number, as well as a table of other variables. You must use Excel to create the data set by downloading this document and inputting the last six digits of your student number. You do not have to use Excel to complete your solutions if you don't want to! List this table of variables CLEARLY at the very top of your submission. Failure to do this will make it impossible to mark your work! if you are completing your work electronically, simply take a screenshot or copy. YOUR values into your document. - If you are completing your work on paper, write the FULL table at the top of your first page. THIS UST OF VARIABLES MUST BE STATED A FORE YOU COMPLETE ANY CALCULATIONS! Step 3: Solve Problems Read the 'Mini-Case' below which presents a real-world scenario for the applic financial mathematics concepts. Complete the calculations indicated in each part. For each calculation/part, be sure to show your work (the values used to answer along with any relevant information) and a final statement. Be sure you and professional throughout! Mini-Case PART A Owners of a new restaurant have found numerous costs associated with startir business (see table). They financed the total of these costs with end-of-month through a loan from the bank at {E} compounded {F}, amortized over {c} years 1. What is the size of the monthly payments required to settle this loan? 2. What is the principal balance outstanding on the loan after one year 3. What is the size of the final payment? 4. Construct a partial amortization schedule for this loan. PART B After two years in business, the owners have saved (have a surplus of) {H}. The they will invest in property or investment bonds. if they invest in a property and a vehicle the total cost will be {l), of which {H} w as a down payment The fixed Interest rate on the mortgaged amount is {u} cor las istede of exactly PART C If the owners choose to invest in bonds instead, they look at a {L) bond set to mature in {m} years with a bond rate of {N}, payable semi-annually. The market rate is {J}, compounded semi-annually. The owners will only purchase the bond if they can afford it with their savings ({H}), and they can get the bond at a discount because they think the market rate will go down, potentially making the bond more valuable in the future. 8. If the bond rate is {N}, will the bond be sold at a premium or a discount? Explain you answer. 9. Calculate the purchase price of the bond if it is purchased today ({M} years before maturity). 10. Do the owners have enough money to buy their bond? Will they make the purchase? Step 5: Presentation and Submission if it wasn't already clear, this ossignment should be presented professionally and clearly. It should be easy to find the appropriate answers to each problem. Display your solutions as though you were presenting them to your manager. You should be proud of what you have produced! Once you are nappy with your work, submit Lee (1) file to the Moodle Dropbox. Late assignments will not be accepted