MGT411 Assignment#1 Solution & Discussion Due Date:10-11-2010 - Virtual University of Pakistan 2021-04-10T19:42:49Z https://vustudents.ning.com/forum/topics/mgt411-assignment1-solution-1?groupUrl=mgt411moneybanking&feed=yes&xn_auth=no hi thanks for assignment reme… tag:vustudents.ning.com,2010-11-11:3783342:Comment:300116 2010-11-11T08:32:22.463Z Arbaz Qadeer https://vustudents.ning.com/profile/ArbazQadeer hi thanks for assignment remember me in prayers hi thanks for assignment remember me in prayers 120/(1.141)2 = 92 ???????????… tag:vustudents.ning.com,2010-11-11:3783342:Comment:299841 2010-11-11T05:23:32.252Z 1*STRANGER*1 https://vustudents.ning.com/profile/STRANGER 120/(1.141)2 = 92 ?????????????????<br /> 1120/(1.141)3 = 753 ???????<br /> <br /> can any explan me plz 120/(1.141)2 = 92 ?????????????????<br /> 1120/(1.141)3 = 753 ???????<br /> <br /> can any explan me plz Everybody got confused about… tag:vustudents.ning.com,2010-11-10:3783342:Comment:299592 2010-11-10T18:33:43.181Z Muhammad Ali https://vustudents.ning.com/profile/Alibabu Everybody got confused about this assignment please help each other because i am also confused. If confirmed then mail me also ali_gulzar@hotmail.com Everybody got confused about this assignment please help each other because i am also confused. If confirmed then mail me also ali_gulzar@hotmail.com To solve or calculate the fut… tag:vustudents.ning.com,2010-11-10:3783342:Comment:299413 2010-11-10T17:16:41.595Z + M.Tariq Malik https://vustudents.ning.com/profile/malik12 To solve or calculate the future value<br /> <br /> FV = PV *(1+(i/n))^n<br /> =1000*(1+(.10/2))^30<br /> 1000*(1+1.05) ^30<br /> <br /> FV = Rs. 4321.942<br /> <br /> Now calculate present formula<br /> PV = fv/((1+(i/n))^n<br /> PV = 4321.942/(1+.12/2)^30<br /> PV = 4321.942/ (1+.06) ^30<br /> PV = Rs.752.49<br /> <br /> Part B<br /> <br /> C= Coupon rate = 12%<br /> Coupon payment = 950*(1.12) = 1120<br /> <br /> Where<br /> I= annual coupon interest payment<br /> That will be<br /> I =coupon rate*face value<br /> =12/100*1000<br /> =120<br /> =Rs.120<br /> And<br /> V = par value<br /> =1000<br /> And<br /> P = price of the bond<br /> = Rs.950<br /> T=number of time period… To solve or calculate the future value<br /> <br /> FV = PV *(1+(i/n))^n<br /> =1000*(1+(.10/2))^30<br /> 1000*(1+1.05) ^30<br /> <br /> FV = Rs. 4321.942<br /> <br /> Now calculate present formula<br /> PV = fv/((1+(i/n))^n<br /> PV = 4321.942/(1+.12/2)^30<br /> PV = 4321.942/ (1+.06) ^30<br /> PV = Rs.752.49<br /> <br /> Part B<br /> <br /> C= Coupon rate = 12%<br /> Coupon payment = 950*(1.12) = 1120<br /> <br /> Where<br /> I= annual coupon interest payment<br /> That will be<br /> I =coupon rate*face value<br /> =12/100*1000<br /> =120<br /> =Rs.120<br /> And<br /> V = par value<br /> =1000<br /> And<br /> P = price of the bond<br /> = Rs.950<br /> T=number of time period involved =3<br /> <br /> By putting the values<br /> YTM = [120+(1000+950)/3]/(1000+950)/2<br /> YTM = [120+50/3]/1950/2<br /> YTM = 0.14017<br /> <br /> Part C<br /> <br /> Initial = 5million<br /> <br /> Cf1 = 2million<br /> Cf2 = 2.5m<br /> Cf 3= 1m<br /> Cf4 = 1.5m<br /> Cf5 = .5m<br /> <br /> <br /> By using the formula of present value<br /> <br /> PV = CF1/(1+IRR)1+ CF1/(1+IRR)^2+ CF1/(1+IRR)^3+ CF1/(1+IRR)^4+ CF1/(1+IRR)^5<br /> <br /> Using trile and error method<br /> Consider IRR = 20%<br /> <br /> By putting the values<br /> <br /> 5 = 2/(1+.2)^1+2.5/(1+0.2)^2+1/(1+0.2)^3+1.5/(1+.0.2)^4+0.5/(1+0.2)<br /> 5 = 1.667+1.74+0.58+.73+0.21<br /> 5 = 4.90<br /> <br /> it means that IRR will be a slightly low<br /> now put the IRR=18%<br /> <br /> 5 = 2/(1+.18)^1+2.5/(1+0.18)^2+1/(1+0.18)^3+1.5/(1+.0.18)^4+0.5/(1+0.18)<br /> 5 =<br /> 5 = 1.69+1.79+.61+0.78+0.22<br /> 5 = 5.09<br /> <br /> the IRR will be between 18% and 20% I thing it is correct thanx f… tag:vustudents.ning.com,2010-11-10:3783342:Comment:299285 2010-11-10T16:22:25.246Z M Tayyan Niaz https://vustudents.ning.com/profile/MTayyanNiaz I thing it is correct thanx for that. I thing it is correct thanx for that. dear saima i also confuse to… tag:vustudents.ning.com,2010-11-10:3783342:Comment:298969 2010-11-10T09:06:04.813Z Nauman Anwar https://vustudents.ning.com/profile/NaumanAnwar dear saima i also confuse to make this assignment and i also not sure about my assignment if you made money &amp; banking assignment can you send me please<br /> my mailing address is<br /> naumananwar9@gmail.com<br /> <br /> i m waiting your good response dear saima i also confuse to make this assignment and i also not sure about my assignment if you made money &amp; banking assignment can you send me please<br /> my mailing address is<br /> naumananwar9@gmail.com<br /> <br /> i m waiting your good response Thanks a lot bro this is real… tag:vustudents.ning.com,2010-11-10:3783342:Comment:298660 2010-11-10T04:56:45.922Z Zeshan.Aries https://vustudents.ning.com/profile/ZEESHANAZIZ Thanks a lot bro this is really a nice solution. Once again thanks a lot. Thanks a lot bro this is really a nice solution. Once again thanks a lot. on page 1 idea solution provi… tag:vustudents.ning.com,2010-11-09:3783342:Comment:298426 2010-11-09T18:08:32.898Z SAMAR https://vustudents.ning.com/profile/saimaiqbal244 on page 1 idea solution provided by lucky on page 1 idea solution provided by lucky DEAR pls chek the solution of… tag:vustudents.ning.com,2010-11-09:3783342:Comment:298265 2010-11-09T16:17:57.372Z lucky https://vustudents.ning.com/profile/mubasharahmad DEAR<br></br> pls chek the solution of finacial mngmnt 1st ASSIGNMENT that is by teacher,,,us ma use kia ha ye formula,,but thora sa differnt ker k,<br></br> formula that i have used its also same as this of you...acording to ur formula<br></br> Pcp = 50/(1+0.06) + 50/(1+0.06)^2 + 50/(1+0.06)^3 + 50/(1+0.06)^4 + 50/(1+06)^5 + 50/(1+0.06)^6 + 50/(1+0.06)^7 + 50/(1+0.06)^8 + 50/(1+0.06)^9 + 50/(1+0.06)^10 + 50/(1+0.06)^11 + 50/(1+0.06)^12 + 50/(1+0.06)^13 + 50/(1+0.06)^14 + 50/(1+0.06)^15 + 50/(1+0.06)^16 +… DEAR<br/> pls chek the solution of finacial mngmnt 1st ASSIGNMENT that is by teacher,,,us ma use kia ha ye formula,,but thora sa differnt ker k,<br/> formula that i have used its also same as this of you...acording to ur formula<br/> Pcp = 50/(1+0.06) + 50/(1+0.06)^2 + 50/(1+0.06)^3 + 50/(1+0.06)^4 + 50/(1+06)^5 + 50/(1+0.06)^6 + 50/(1+0.06)^7 + 50/(1+0.06)^8 + 50/(1+0.06)^9 + 50/(1+0.06)^10 + 50/(1+0.06)^11 + 50/(1+0.06)^12 + 50/(1+0.06)^13 + 50/(1+0.06)^14 + 50/(1+0.06)^15 + 50/(1+0.06)^16 + 50/(1+0.06)^17 + 50/(1+0.06)^17 + 50/(1+0.06)^18 + 50/(1+0.06)^19 + 50/(1+0.06)^20 + 50/(1+0.06)^21 + 50/(1+0.06)^22 +50/(1+0.06)^22 + 50/(1+0.06)^23 + 50/(1+0.06)^24 + 50/(1+0.06)^25 + 50/(1+0.06)^26 + 50/(1+0.06)^27 + 50/(1+0.06)^28 + 50/(1+0.06)^29 + 50/(1+0.06)^30 page no 41 on hand out of mgt411,<br/> then calculation will be lenghty,,so this is short ct and from book of FM..FOR MORE DETAIL PLS ADD MY ID IN UR ACCOUNT,,THEN WE DISCUSE IT DEAR<br/> lucky.jan077@gmail.com Lucky plese which formula u u… tag:vustudents.ning.com,2010-11-09:3783342:Comment:298228 2010-11-09T14:26:30.897Z Muhammad Sarfraz Awan https://vustudents.ning.com/profile/MuhammadSarfrazAwan747 Lucky plese which formula u used in present valu i didnt seen whole of the hand note MGT 411and as well as formula in the soultion of tariq bahi is a correct or not i think that was also worng and formula is<br/> Pv (1+ ( i/n ))^n but i think the correct formula is FV = PV(1 + i)^n in part (A) as well as i did not under stand the value of i=0.5 and again value of i=0.6 any body tell me who can colcolate the assignment. Lucky plese which formula u used in present valu i didnt seen whole of the hand note MGT 411and as well as formula in the soultion of tariq bahi is a correct or not i think that was also worng and formula is<br/> Pv (1+ ( i/n ))^n but i think the correct formula is FV = PV(1 + i)^n in part (A) as well as i did not under stand the value of i=0.5 and again value of i=0.6 any body tell me who can colcolate the assignment.