Venture capital required rate of return. Blue Angel Investors has a success ratio of 10% with its venture funding. Blue Angel requires a rate of return of 21.6% for its portfolio of lending, and the average length on its loans is 5 years. If you were to apply to Blue Angel for a $169,000 loan, what is the annual percentage rate you would have to pay for this loan? What is the annual percentage rate for the loan? ☐ % (Round to four decimal places.)

Suppose you are offered an investment opportunity that will pay $2,500 in five years if you invest $2,000 today. What is the implied rate of return?     A) 4.56%   B) 4.00%   C) 5.00%   D) 3.62%   E)25.00%

A borrower has secured a 30 year, $150,000 loan at 7% with monthly payments. Fifteen years later, an investor wants to purchase the loan from the lender. If market interest rates are 5%, what would the investor be willing to pay for the loan? (Correct Anwser: C)   A:$75,000   B:$111,028   C:$118,478   D:$168,646   How to solve this problem? Give typing answer with explanation and conclusion

For questions below, make sure to write down the formulas you use and explain your calculations. 1. Suppose you take out a fixed payment loan of £1000 for 5 years. You will repay it in annual installments. Calculate the fixed payment if you know the interest on the loan is 5%. 2. Suppose you require a 10% return on your investments while purchasing a stock that is currently trading at $50. The company is believed to pay out dividends of $5 per share in the next two years. What is the lowest value of expected stock price 2 years from now that would make you willing to purchase the stock asuming you want to sell it at that time? Calculate the yield-to-maturity on a coupon bond that has a 5% annual coupon rate and face value F = $100 due in 2 years from now if the bond is currently traded at price $105. 3. Suppose the current 1-year discount rate on US government bonds is 3% and the 2- year rate is at 6%. What is the implied expected 1-year rate next year, assuming the expectations 4.…

You want to invest $18,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 6% that is compounded semiannually. What is the effective rate of return that you will earn from this investment?

Using Excel Please show how to solve this step by step to answer questions A. B. C. and D.  The Green Bank originates a pool of containing 100 30-year fixed-rate mortgages with loan amount of $250,000 each.  All mortgages in the pool carry a rate of 6.5% with monthly payments. The servicing fee is 0.05% each month. The Green Bank would like to sell the pool to investors via IO/PO Strips. Suppose that they issue 150,000 shares of IO/PO Strips and the market interest rate is 6%. A. Assume that there are no prepayment and no default, how much an investor would like to pay for each share of the IO/PO Strips? B. What is the price of each share of the IO/PO Strips if there are a constant prepayment rate of 1.5% every month and no default? C. What is the price of each share of the IO/PO Strips if there are a constant default rate of 1.5% every month (assuming the recovering rate is 50%) and no prepayment? D. Please explain your findings.

Suppose a risk neutral agent has $100,000 today that he wants to save for one year. Compare the following three savings plans.    Bank A offers a standard savings account with 4.3% p.a. (per annum).   Bank B offers the following alternative:   There is a basis interest rate of 1.2% p.a. and 40% participation on the performance of the S&P500. The maximum interest rate is capped at 10% p.a. (If the S&P increases by 4%, there is a bonus of 1.6% so that the total return is 2.8% p.a. If the return of the S&P is 30%, the plan has a total return of 10%. Note, if the S&P has a negative return, the interest rate remains at 1.2%.)   Bank C offers the following alternative:   There is a basis interest rate of 3% p.a. and 20% participation on the performance of the S&P500. The maximum interest rate is capped at 8% p.a.   Suppose the S&P has 1000 points at t=0. At t=1 it can have {900, 990, 1000, 1020, 1030, 1040, 1100, 1200, 1300, 1400} points with equal probability.   (a)…

Chris offers you an investmet where if ou investment where if you invest $1,000 today, he'll return you $1,200 in 2 years. What is the annual rate of return of this investment?  Choose the closest.   a) 10.5% b) 9.0% c) 10.0% d) 9.5%

Suppose your firm is seeking a four year, amortizing $260,000 loan with annual payments and your bank is offering you the choice between a $268,000 loan with a $8,000 compensating balance and a $260,000 loan without a compensating balance. The interest rate on the $260,000 loan is 9.8 percent. How low would the interest rate on the loan with the compensating balance have to be for you to choose it? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Interest rate %

Suppose Capital One is advertising a 60-month, 5.66% APR motorcycle loan. If you need to borrow $7,200 to purchase your dream Harley-Davidson, what will your monthly payment be? (Be careful not to round any intemediate steps less than six decimal places)