University of Louisiana, Lafayette - FNAN 522 Module 2 Homework. Latest 2022
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Course
FNAN 522
Institution
University Of Louisiana, Lafayette
University of Louisiana, Lafayette - FNAN 522 Module 2 Homework.Started on Sunday, 3 November 2019, 8:48 PM State Finished Completed on Sunday, 3 Novembe r 2019, 9:38 PM Time taken 50 mins 10 secs A company issues a bond with the provision that it may pay off the debt early. This bond is subject to...
a company issues a bond with the provision that it may pay off the debt early this bon
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University of Louisiana, Lafayette
FNAN 522
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FNAN522-020_860-202020
Started on Sunday, 3 November 2019, 8:48 PM
State Finished
Completed on Sunday, 3 November 2019, 9:38 PM
Time taken 50 mins 10 secs
Question 1 A company issues a bond with the provision that it may
Correct pay off the debt early. This bond is subject to which
type of risk?
Marked out of 1.00
Select one:
a. All of the above.
b. Model risk.
c. Prepayment risk.
d. Interest rate risk.
Question 2 What will $247,000 grow to be in 9 years if it is
Correct invested today in an account with an annual
interest rate of 11%?
Marked out of 1.00
Select one:
a. $351,268.46
b. $631,835.12
c. $637,365.32
d. $96,558.42
, Question 3 Approximately how many years will it take for
Correct $136,000 to grow to be $468,000 if it is
invested in an account with an annual interest
Marked out of 1.00
rate of 8%? Choose the closest answer.
Select one:
a. 16 years.
b. 11 years.
c. 21 years.
d. Error 5.
Question 4 At what annual interest rate must $137,000 be
Correct invested so that it will grow to be $475,000 in
14 years? Choose the closest rate.
Marked out of 1.00
Select one:
a. 11.58%
b. 9.29%
c. 15.69%
d. 3.2%
Question 5 If you wish to accumulate $197,000 in 5 years,
Correct how much must you deposit today in an account
that pays a quoted annual interest rate of 13%
Marked out of 1.00
with semi-annual compounding of interest?
Round to the nearest dollar.
Select one:
a. $106,924
b. $143,787
c. $104,947
d. $58,034
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