Chance to buy promissory note

Assignment Help Financial Management

Reference no: EM132054601

1. You have the chance to buy a promissory note in which you will receive 36 monthly payments of $750 (starting a month from now), followed by 12 monthly payments of $850. What is your yield if you buy the note for $35,000?

a. 2.95% compounded monthly

b. 3.15% compounded monthly

c. 4.66% compounded monthly

d. 0.13% compounded monthly

2. Assume the average market return over the next 50 years is expected to be 7.7%. If an investor contributes $19 thousand into an investment account today, pays 2% of assets under management for various fund and advisor fees, and waits for 50 years, what percentage of his final wealth has he sacrificed in fees?

Enter answer in percents.

Reference no: EM132054601

Questions Cloud

Based on riskiness of the project : Based on the riskiness of the project, you require a 12 percent return. What is the maximum you should be willing to pay?

How each can be helpful to identify needs of an organization : Distinguish between organizational needs assessment and strategic planning, and assess how each can be helpful to identify the needs of an organization.

Call option on the sgd with strike price : A call option on the SGD with a strike price of 0.74 USD/SGD and a maturity of 6 months has a premium bid price of 0.1 USD,

What changes would you want in your job : Consider a job you hold now or have held recently. Would you want this job to be redesigned to place more emphasis on efficiency, motivation, ergonomics.

Chance to buy promissory note : You have the chance to buy a promissory note in which you will receive 36 monthly payments of $750.

What type of resistance would you face in area of employment : Of all the designs presented in the appendix, which one would you consider the most effective while also being practical enough to convince your current place.

What is the internal rate of return on this project : What is the internal rate of return (IRR) on this project?

Determine how the study was accomplished : Create or revise a Strategic Plan and Forecast outlining a competitive strategy for St. Jude Childrens Research Hospital over a three-year outlook period.

What are usps environmental sustainability practices : In this paper, examine The United States Postal Service (USPS) generic and diversification strategies, its international moves, and its ethics.

User Account

All Pages