Which of the following is an expression for the present value of an annuity-due with 20 beginning of year payments under the yield curve method with an interest rate of 5% for the first 5 years and 6% for the last 15 years? a) 2515% + 5|41516% b) 55% + 1.05-01516% c) gs% + s1516% d) 05|% + 1.05-S1516% Which of the following describes Absolute Matching? a) Structuring the assets such that two cash inflows are associated with each cash outflow so any change in the interest rate results in a surplus of assets b) Structuring the assets such that the cash inflow will exactly match the cash outflow in every period c) Structuring the assets such that duration of the assets matches the duration of the liabilities and the convexity of the assets is greater than the convexity of the liabilities Which formula represents a loan that is being repaid with monthly payments for 20 years, where the payments begin at 2,400 and decrease 100 per month until reaching 1,200? Month 1 2 3 12 13 240 Payment 2,400 2,300 2,200 1,300 1,200 1,200 1,200 11 a) 100(Da) 121 + 1,200a2401 b) 2,50022401 - 100(la) 121 c) 100(Da) 11 + 1,2000240 d) 2,400a2401 - 100(la)111 Which of the following expressions does not represent an annuity of 1 payable at the end of each quarter for n years? -4n 1-(1 + i(4)/4) (4)/4 d)vi + 01/2 + ... + un 1 - b) 4 Which of the following is an expression for the present value of an annuity-due with 20 beginning of year payments under the yield curve method with an interest rate of 5% for the first 5 years and 6% for the last 15 years? a) 2515% + 5|41516% b) 55% + 1.05-01516% c) gs% + s1516% d) 05|% + 1.05-S1516% Which of the following describes Absolute Matching? a) Structuring the assets such that two cash inflows are associated with each cash outflow so any change in the interest rate results in a surplus of assets b) Structuring the assets such that the cash inflow will exactly match the cash outflow in every period c) Structuring the assets such that duration of the assets matches the duration of the liabilities and the convexity of the assets is greater than the convexity of the liabilities Which formula represents a loan that is being repaid with monthly payments for 20 years, where the payments begin at 2,400 and decrease 100 per month until reaching 1,200? Month 1 2 3 12 13 240 Payment 2,400 2,300 2,200 1,300 1,200 1,200 1,200 11 a) 100(Da) 121 + 1,200a2401 b) 2,50022401 - 100(la) 121 c) 100(Da) 11 + 1,2000240 d) 2,400a2401 - 100(la)111 Which of the following expressions does not represent an annuity of 1 payable at the end of each quarter for n years? -4n 1-(1 + i(4)/4) (4)/4 d)vi + 01/2 + ... + un 1 - b) 4