MGT411 Assignment#1 Solution & Discussion Due Date:10-11-2010 - Virtual University of Pakistan2020-07-06T21:32:00Zhttps://vustudents.ning.com/forum/topics/mgt411-assignment1-solution-1?groupUrl=mgt411moneybanking&feed=yes&xn_auth=nohi thanks for assignment reme…tag:vustudents.ning.com,2010-11-11:3783342:Comment:3001162010-11-11T08:32:22.463ZArbaz Qadeerhttps://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:2998412010-11-11T05:23:32.252Z1*STRANGER*1https://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:2995922010-11-10T18:33:43.181ZMuhammad Alihttps://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:2994132010-11-10T17:16:41.595Z+M.Tariq Malikhttps://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:2992852010-11-10T16:22:25.246ZM Tayyan Niazhttps://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:2989692010-11-10T09:06:04.813ZNauman Anwarhttps://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 & 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 & 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:2986602010-11-10T04:56:45.922ZZeshan.Arieshttps://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:2984262010-11-09T18:08:32.898ZSAMARhttps://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:2982652010-11-09T16:17:57.372Zluckyhttps://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:2982282010-11-09T14:26:30.897ZMuhammad Sarfraz Awanhttps://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.