### Determining the value of investment

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##### Reference no: EM131115398

Suppose you just bought a 11-year annuity of \$12,000 per year at the current interest rate of 11.5% per year. What happens to the value of your investment if interest rates suddenly drop to 6 percent? What if interest rates suddenly rise to 12 percent?

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The Florida lottery agrees to pay winner 271, 000 at the end of each year for the next 20 years. What is the future value of this prize if each payment is put in an account

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You decide to take a speculative position in a FRA with a \$1,000,000 notional value. There are 183 days in the FRA period. Determine whether you should buy or sell the FRA and

#### Determine how much the fra is worth and who pays who the buy

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If six-month LIBOR is 4½ percent over the first six-month interval and 53/8 percent over the second six-month interval, how much will Grecian Tile pay in interest over the fir

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