question archive 1- If you are obliged to finance the particular loan in Question 5 by issuing a 100
1- If you are obliged to finance the particular loan in Question 5 by issuing a 100
Subject:FinancePrice: Bought3
1- If you are obliged to finance the particular loan in Question 5 by issuing a 100.000 TL of zero-coupon bond that has exactly the same duration with that loan under the same market conditions, what should be the present value of that bond?
a) 83.961,93 TL
b) 90.752,92 TL
c) 71.178,02 TL
d) 82.802,23 TL
e) Other:
2- Suppose that at the beginning of the year, you invest in a bond that has a face value of 80.000 TL, a maturity of 3 years, a coupon rate of 20% and annual coupon payments. Market yields were 15%, however, they have risen to 25% at the end of the second year. What would be the dirty price of the bond at the end of the third year?
a) 76.800 TL
b) 96.000 TL
c) 102.500 TL
d) 80.000 TL
e) Other:
3- Suppose that you obtain a loan from a bank. The loan amount is 60.000 TL and has a 5 years maturity. You have to pay monthly installments and the annual interest rate is determined as 20%. Then, you put the 50.000 TL of the loan amount into a term deposit account on a monthly basis for 5 years, so that you pay your installments with the interest earned. To achieve an exact match between installments and interest income, what should be the annual interest rate on the term deposit?
a) 38,15%
b) 29,08%
c) 34,23%
d) 25,19%
e) Other:
4- You enter into a "reverse repo" transaction meaning that the counterparty delivers some securities (let's say t-bonds) to you and borrows from you. According to the agreement, you lend 25.000 TL for 20 days with an annual repo yield of 8%. However, suppose that you immediately needed urgent liquidity. You decided to enter into a "repo" transaction now with another party by using the t-bonds of the reverse repo counterparty. This new agreement allows you to borrow 20.000 TL for 8 days with an annual repo yield of 6%. What would be the total profit at the maturity of the "repo" transaction? (1 year = 360 days)
a) 84,44 TL
b) 26,67 TL
c) 17,78 TL
d) 44,44 TL
e) Other:
5- Suppose that you have three pension plans that you make periodic payments for each. First plan provides a monthly rate of return of 1% (monthly payments). Second plan provides a semiannual rate of return of 5% (semi-annual payments). Third plan provides a quarterly rate of return of 3% (quarterly payments). You invest 100 TL for each plan in accordance with their periodic payment periods for 10 years. What would be your total amount of funds at the end?
a) 23.003,87 TL
b) 33.850,59 TL
c) 11.176,76 TL
d) 19.814,10 TL
e) Other:
