Author: Anonymous

The Howe family recently bought a house.  The house has a 15-year,  $298,952.00 mortgage with monthly payments and a nominal interest rate of 4.8 percent.  What is the total dollar amount of principal the family will pay  during the first 2 years of their mortgage?  (Assume that all  payments are made at the end of the month.)

One-year Treasury securities yield 2.7 percent, 2-year Treasury securities yield 1.8 percent, and  3-year Treasury securities yield 2.4 percent. Assume that the expectations theory holds. What  does the market expect will be the yield on 1-year Treasury securities two years from now?

Jill currently has $235,346.00 in a brokerage account.  The account pays a  15.4 percent annual interest rate.  Assuming that Jill makes no additional  contributions to the account, how many years will it take for her to have $1,240,514.00 in the account?

The real risk-free rate of interest is 3 percent.  Inflation is expected to be 4 percent this  coming year, jump to 5 percent next year, and increase to 6 percent the year after (Year 3).   According to the expectations theory, what should be the interest rate on 3-year, risk-free  securities today?

One-year government bonds yield 4.7 percent and 5-year government bonds yield 3.6 percent.  Assume that the expectations theory holds.  What does the market believe the rate on 4-year government bonds will be one year from today?

Drongo Corporation’s 3-year bonds currently yield 6.5 percent and have an inflation premium  of 3.6%.  The real risk-free rate of interest, r*, is 2.3 percent and is assumed to be constant.   The maturity risk premium (MRP) is estimated to be 0.1%(t – 1), where t is equal to the time to  maturity.  The default risk and liquidity premiums for this company’s bonds total 0.4 percent and are believed to be the same for all bonds issued by this company.  If the average inflation  rate is expected to be 3.6 percent for years 4, 5, and 6, what is the yield on a 6-year bond for  Drongo Corporation?

You can format numeric data as text by typing a(n) ___ before the number(s).

In Excel, a ___ chart depicts data based on geographic location.

The ____ function multiplies the numbers in the first specified range by the numeric values in the second range and totals the results of the multiplication.

The ____________________ option on the Auto Fill Options menu fills the destination area with contents using the format of the source area and does not create a series.