Determining nominal annual interest rate

Assignment Help Finance Basics
Reference no: EM1334213

1. Determine the value at the end of four years of a $10,000 investment (today) in a bank certificate of deposit (CD) that pays a nominal annual interest rate of 12 percent, compounded.

Do this for:

semi-annual
Quarterly
Monthly

2. Explain how diversification can reduce the risk of a portfolio of assets to below the weighted average of the risk of the individual assets.

Reference no: EM1334213

Questions Cloud

Find speed of execution of application programs : As computer word size gets larger and larger, there is a law of diminishing returns; the speed of execution of application programs does not increase and may, in fact, decrease. define why this can occur.
Explain health care insurance toward your family : What is the importance to have health care insurance and What are the benefits of health care insurance toward your family?
Define three approaches to organizing programming teams : How does implementing a maintenance change differ from the new system development project.
Personal experience affect decision making style : What has been your personal experience with these various personalities, as you have found them displayed in managers, friends, and family? Have these differences affected you decision making style?
Determining nominal annual interest rate : Find out the value at the end of four years of $10,000 investment (today) in a bank certificate of deposit (CD) that pays a nominal annual interest rate of 12 percent, compounded.
Department and organizational functions at wal-mart : PERT and CRM at Wal-Mart - How does project management effect various department and organizational functions at Wal-Mart?
The management of raw materials : Why demand is quoted history irrelevant for the management of raw materials and work-in-process inventories?
The main reasons for it project failures : Why do you believe some projects do not meet their objective or scope.
Importance of current and accurate job descriptions : Imagine you are working in a Human Resources Department and You are asked to put together a program to inform the managers and supervisors about the importance of the employee selection process.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Objective type questions on payback period and npv and irr

Objective type questions on payback period, NPV and IRR and What is the internal rate of return that Turnbull can earn on this project

  Libraries of future

Given emerging information technology, there's controversy regarding the continuing viability of this marketing concept. One view of how the concept might continue to evolve is from renowned futurist, Thomas Frey. Using the following websites:

  Xyz corporation-yield to maturity

XYZ Corporation issued $500 million in debentures in 2002 at par. The debentures carry a coupon rate of 3.5% and mature on 12/15/2020.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Description of present value of money

Ambrin Corp. expects to receive $2,000 per year for 10 years and $3,500 per year for next ten years. What is the present value of this 20 year cash flow. Employ a 11% discount rate.

  Computation of the effective interest rate on the loan

Computation of the effective interest rate on the loan payable in due and in advance and calculate Interest is deducted in advance

  Computing wal-mart-s original strategy for creating value

Wal-Mart, discount merchandiser, started by putting large stores in small Sunbelt towns that its competitors had neglected. Compute Wal-Mart's original strategy for creating value?

  Computation of apr quote of bank account

Computation of APR quote of bank account based on semi-annual and monthly compounding

  Describing money and interest rates

What are the primary economic indicators that you would use if you were thinking about making a large purchase and needed a loan? For example, you may consider a new house, car, or new capital for a business?

  Explain valuation of bond for different ytms

Explain Valuation of bond for different YTMs compute the current price of the bonds if the present yield to maturity is 6 percent and 12 percent

  Computing the value of the investment using capital asset

Computing the value of the investment using capital asset prising model and how much should you invest in the risk-free asset

  Computation of equivalent annual cash flows

Computation of Equivalent Annual cash flows for making decision regarding Bid Price and machine screws per year to support its manufacturing needs

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd