Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
1. You are a credit analyst in the asset management department of a large insurance company. The credit department is researching an investment in a syndicated loan made to a large firm. The loan is an “amortized loan” with a 7% interest rate payable semi-annually. The original term was 10 years. For analytical purposes, assume the loan trades in $1000 increments. What are the semi-annual payments on the loan?
$70.36
$72.62
$81.47
$85.00
$91.52
2. The amortized loan had an original term of 10 years but 2 years have passed. What is the outstanding balance on the loan with 8 years to maturity?
$787.59
$800.00
$850.95
$878.27
$985.31
3. Assume the loan has been outstanding for 2 years so there are 8 years to maturity. Payments on the loan are up to date and the fourth payment has just been made so the next payment is due in 6 months. The loan is currently trading at 87% of the remaining balance of the loan. What would the loan trade at in dollar terms?
$685.20
$696.00
$740.33
$764.09
$857.22
4. What is the yield to maturity on the loan?
6.31%
6.80%
9.94%
10.84%
13.09%
Fairfax Paint operates stores in Virginia. The firm is evaluating the Vienna project, which would involve opening a new store in Vienna. During year 1, Fairfax Paint would have total revenue of 356,000 dollars and total costs of 245,000 dollars if it..
If the risk-free rate of interest (rf) is 3.5%, then you should be indifferent between receiving $1000 in one-year or. The effective annual rate for a certificate of deposit that pays 3.9% APR compounded monthly is closest to: Wesley Mouch's auto loa..
Gillian Stationary Corporation needs to raise 600,000 to improve its manufacturing plant. It has decided to issue a 1000 par value bond with an annual percentage rate of 8.0 percent with interest paid semi annually and a 10 year maturity. Investors r..
Explain how the credit crisis adversely affected many other people beyond homeowners and mortgage companies. - Do you believe the impact of the credit crisis is still being felt today?
What is the profitability index for an investment with the following cash flows given a 9 percent required return?
What are two tactics that a financial manager can use to manage earnings? What are the implications for cash flow and shareholder wealth?
Assume that U.S. Treasury decides to extend a loan guarantee (for political reasons) to a country with a B rating. With such a guarantee this country will be able to issue a five-year $2 billion face value zero-coupon bond at a yield of 7.5 percent (..
The company's cost of capital is 10 percent, and it can get an unlimited amount of capital at that cost. What are the NPVs of both projects? What is the payback period for each? What is the IRR of both projects? Which project would you accept?
Suppose that you are considering making a working capital loan to a business customer of your bank. You do the cash to cash cycle analysis and determine that the firm's daily average cost of goods sold is $ 50,000. What does this mean?
Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8.2 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent fac..
The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $2.9 million, and the 2015 balance sheet showed long-term debt of $3.1 million. The 2015 income statement showed an interest expense of $145,000. During 2015, the compa..
A firm has sales of $4,780, costs of $2,580, interest paid of $173, and depreciation of $481. The tax rate is 34 percent. What is the value of the cash coverage ratio?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd