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!
The Dakota Bank makes five year loans for college students. Dakota wants to receive an annual interest rate 3.2% compounded continuously without taking into account defaults and inflation. Dakota knows that inflation for the next five years will be at an annual rate of 2.4% compounded continuously.
College students have a high default rate. Dakota believes that 4.2% of the students will default on the loan at the end of 5 years. She also believes that she will be able to recover 20% of the amount owed on defaults.
a. Calculate the credit spread that Dakota needs to charge as an annual rate compounded continuously. (Enter answer as a decimal and round to the nearest 5 decimal places.)
b. Calculate the total annual interest rate compounded continuously that Dakota should charge for the loans including the components for default and inflation. (Enter answer as a decimal and round to the nearest 5 decimal places.)
c. Sammie borrows 32,000 from Dakota to be repaid at the end of five years. Calculate the amount that Sammie will need to repay at the end of five years. (Enter answer as a decimal and round to the nearest 2 decimal places.)
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
This report is specific for a core understanding for Financial Accounting and its relevant factors.
Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.
Briefly describe the major differences between a sole proprietorship and a corporation
Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month
What are the implied interest rates in Europe and the U.S.?
State pricing theory and no-arbitrage pricing theory
Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.
The Effect of Financial Leverage and working capital management
Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.
Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.
Time Value of Money project
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd