Taking account of the impact of the initiation fee

Assignment Help Financial Management
Reference no: EM131964818

1. Five years ago, Shirley Harper bought a 10-year bond that pays 8 percent semiannually for $981.10. Today, she sold it for $1,067.22. What is the realized yield on her investment? (Round to the nearest percent.)

2. You borrow $1,000 from the bank and agree to repay the loan over the next year in 12 equal monthly payments of $90. However, the bank also charges you a loan initiation fee of $13, which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee?

Reference no: EM131964818

Questions Cloud

New set of machine tools to process special orders : "The Simon Machine Tools Company is considering purchasing a new set of machine tools to process special orders.
Channels in terms of distribution coverage required : Discuss the choice of channels in terms of Distribution coverage required, degree of control, total distribution cost and channel flexibility
Develop an e-commerce plan for an existing business : Develop an e-commerce plan for an existing business. Please provide the authentic solution of this problem.
How you used postformal thinking to deal with an issue : Describe how you used postformal thinking (use the key terms and describing the thinking that fits those terms) to deal with an issue.
Taking account of the impact of the initiation fee : What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee?
What was the amount of each withdrawal : A philanthropist leaves an inheritance to 3 charities as a perpetuity-due. what was the amount of each withdrawal?
Earnings growth comes from investment of retained earnings : Assume GPC share count remains constant and all earnings growth comes from the investment of retained earnings.
Explain the history and purpose of NAFTA : Explain the history and purpose of NAFTA. What were the concerns about NAFTA and briefly discuss the results of NAFTA, once it was enacted
What is the eeoc and what is its purpose : What is the EEOC and what is its purpose? What is Affirmative Action?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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