SMA2033

The followings shows an equation of a Present Value EXCEPT

Deposit payments are made every quarter into the fund earning 12% convertible monthly. Which are CORRECT?

Which condition shows that the bond is a DISCOUNT?

What is the Present Value equation for a payment of 100 due at time 5 and 200 due at time 15 equals to 300 due at time 10?

• 86,201.36

• 84,627.55

Which of the following statements about immunization strategies are true?

I) To achieve immunization, the convexity if the assets must equal the convexity of the liabilities

II) The full immunization technique is designed to work for any change in the interest rate

III) The theory of immunization was developed to protect against adverse effects created by changes in interest rates

• None

• I and II only

• I and III only

• II and III only

• Redington Immunization

• Full Immunization

To calculate the amount of Interest earned for Dollar Weighted Rate of Return:

A 10-year annuity immediate has a first year payment of 500. The subsequent payments increase by 100 each year. Which formula of the following represents the Present Value of for this scenario?