Consider the following portfolio of assets and liabilities. The time, t, is measured in years. Assets: A payment of £3,738.32 t = 3 and a payment of £4,280 at t = 5. Liabilities: A payment of £8,000 at t = 4. The interest rate is 7 % p.a. Calculate the present value of the Assets: £ 数字 Liabilities: £ Enter an answer correct to 2 decimal places Calculate the effective duration of the Assets: 数字 Liabilities: 数字 Enter an answer correct to 2 decimal places Calculate the convexity of the Assets: 数字 Liabilities: 数字 Enter an answer correct to 2 decimal places Does the portfolio of assets and liabilities satisfy the conditions for Redington's immunisation? Yes ○ No

The principal P is borrowed at simple interest rate r for a period of time t. Find the loan's future value, A, or the total amount due at time t. P=$4000, r= 7.5%, t= 9 months The future value is $ (Simplify your answer. Type an integer or a decimal.)

Calculate the present value of the following annulties, assuming each annuity payment is made at the end of each compounding period. (FV of $1, PV of $1, FVA of $1, and PVA of S1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) \table[[, \table[[Annuity], [Payment]], \table [[ Annual], [Rate]], \table[[Interest], [Compounded]], \table [[Period], [Invested]], \table [[Present Value of], [ Annuity]]], [1., $5,000, 7.0%, Semiannually,3 years,], [2., 10, 000, 8.0%, Quarterly,2 years, ], [3., 4,000, 10.0 %, Annually,5 years,]]

Use factors and a spreadsheet to determine the interest rate per period from the following equation: 0=-36,000+8,000 (P/A,i*,5) + 8,000 (P/F,i*,8) (Round the final answer to three decimal places.) The interest rate per period is | %.

Compute the number of years (t) if future value (FV) = $5575,  present value (FV) = $1812, and interest rate (r) = 9.1%,

For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor. 1. In a future value of 1 table: a. b. C. a. b. Annual Rate C. 10% 12% 12% Annual Rate 12% 12% 8% Number of Years Invested Number of Years Invested 26 16 7 12 6 2. In a present value of an annuity of 1 table: (Round "Rate of Interest" answers to 1 decimal place, e.g. 4.5% and other answers to O decimal places, e.g 45.) 20 Number of Rents Involved 26 32 Compounded 28 Annually Quarterly Semiannually Frequency of Rents Annually Semiannually (a) Rate of Interest Quarterly % (a) Rate of Interest % % % % (b) Number of Periods % (b) Number of Periods

For each of the following cases, indicate (a) to what rate columns, and (b) to what number of periods you would refer in looking up the interest factor. 1. In a future value of 1 table: a. b. C. a. b. Annual Rate C. 11% 12% 12% Annual Rate 10% 11% 12% Number of Years Invested Number of Years Invested 25 14 6 11 7 2. In a present value of an annuity of 1 table: (Round "Rate of Interest" answers to 1 decimal place, e.g. 4.5% and other answers to O decimal places, e.g 45.) 19 Number of Rents Involved 25 28 Compounded 24 Annually Quarterly Semiannually Frequency of Rents Annually Semiannually (a) Rate of Interest Quarterly % (a) Rate of Interest % % % % de (b) Number of Periods % (b) Number of Periods

Use the continuous compound interest formula to find the indicated value. A= $16,687; P=$10,400; t= 60 months; r= ?

Assume that time is measured in years.  Calculate the total present value at time 0 of a payment of £257 paid at time 4 and a payment of £67 paid at time 12, using an interest rate of 5% per annum effective.

Calculate the present value of the following annuities, assuming each annuity payment is made at the end of each compounding period. (FV of $1. PV of $1. FVA of $1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) 1. 2. 3. Annuity Payment $ 5,600 10,600 4,600 Annual Rate Interest Compounded Semiannually 9.0% 10.0% Quarterly 11.0% Annually Period Invested 3 years 2 years 5 years Present Value of Annuity