Accounting Help for College and University Students

Calculation of Yield to Maturity: determine annualized yield

The percentage discount rate on 90-day bank bills is 7.3% p.a. Determine the annualized yield from this bill if it was held to maturity.

Lancelot Fund: Expected Market Return and standard deviation

Lancelot Fund Management has found the Holy Grail; a mean-variant efficient portfolio of stocks with an expected return of 25% p.a., a beta of 1.5 and a standard deviation of expected returns of 20% p.a. If the risk free rate is 7% p.a., deduce the expected market return and standard deviation.

Roulette Enterprises: what is the highest price an investor would pay for their shares?

Roulette Enterprises expects to pay a perpetual annual dividend of 65c. The beta of their stock has been calculated ex-post to be 0.8. If the market-risk premium and risk free rate were 8% p.a. and 7% p.a. respectively, what is the highest price an investor would pay for their shares?

How might Jenny optimally invest: portfolio and risk associated.

Given the following RF = 5% p.a. RM = 12% p.a. RiskM = 10% p.a. Describe how Jenny might optimally invest $1,000,000 in a portfolio of financial assets to earn an expected return of 14% p.a. and determine the risk that she would face in doing so. State all necessary assumptions.

Present Values, Future values and monthly compounding of Chris's investments

On January 1st 1990, Chris invested $4,000,000 at a rate of 6% p.a. compounded monthly. Commencing with the first withdrawal on January 31st 1997, he has withdrawn $117, 572 at the end of each month to pay for his medical expenses. If this continues, on what date will the money run out?

Perpetuity, Cash Flow, Present Value: Calculate present value of parking fines

You agree to pay off some parking fines at $20 per month forever. How much would you need to clear this debt now, if the interest rates are 12% p.a. compounded monthly?

Calculate present value of a five-year bond

How much would you pay for a five-year bond that pays interest of $50 semi-annually plus one final payment of $1,000 if the market interest rates for the entire period were 6% per half year?

Loan amortization, repayment and annuity: calculation of monthly installments

Determine what payments are required to repay a $100,000 loan over 20 years in equal monthly installments if interest rates remain at 9% p.a. (compounded monthly)

Loan amortization, annuity and repayment of outstanding balance: calculate payment

a) Calculate the monthly repayments on a $20,000 loan if interest rates are 12% p.a. compounded monthly, and it is to be repaid in equal instalments over 2.5 years. b) What balance is outstanding immediately after the 18th payment is made?

Why do people usually prefer to receive $1 today instead of in a year's time?

Why do people usually prefer to receive $1 today instead of in a year's time?