Q 2-1

equilibrium rate of return % 8%

inflation risk premium % 3.35%
real risk-free rate % 2.20%
liquidity risk premuim % 0.55%
matuity risk premuim % 0.85%

Default risk premium 1.05%

‫ال تنسين تغيرينها‬ Q 2-2

‫لصق الجدول من هنا‬

‫الى هنا‬

Q 2-7

0.40%
1.10%
2

0.75

Q 2-8

0.30%
1.30%
10.40%
10.75%

current (long-term ) rates

0.300%
 0.799
3.903
5.574

Q 2-9
0.44%
0.48%
2

0.46

Q 2 -10

6.70%
7.90%

9.11

Q 2-11

3
5.40%
6.10%
6.70%

3.43

Q 2-12
4
1.50%
5
2.50%

6.60

interest rate1 3.35% Q 2-13

interest rate2 3.70%
interest rate3 4.08%
interest rate4 4.35%
year1 4
year2 5
year3 6

expected one year rate %

4 4.76
5 5.61
6 5.71

Q 2-14
0.48%
0.83%
0.93%
1.23%
0.04%
0.15%
0.17%
annual rates %
0.48%
0.67
0.81
0.96

Q 2-15

4.60%
5.20%
4.60%
2
 1.20%

Q 2-16
3
1.30%
4
1.51%
1.99%

0.15

Q 2-17
Maturity ‫لصق من هنا‬
One day
One year
Two years
Three years ‫الى هنا‬

2.35

* ‫ تحت اخر شي‬18 ‫سؤال‬ Q 2-19

1R1 2.58%
1R2 2.80%
1R3 2.94%
1R4 2.99%
one-year forward rate
2 3.02
3 3.22
4 3.14

Q 2-20
interest rate1 8.0%
interest rate2 8.35%
interest rate3 8.65%
interest rate4 8.75%
year1 3
year2 4
year3 5
year4 6

expected one year forward rate

year 4 9.41
year 5 9.86
year 6 9.25

Q 2-21

1
2.12%
2
2.28%
3
2.39%

2.61

Q 2-22
8,000
6

present value
5,969.72
5,330.74
4,770.14

present value
4,717.31

present value
4,689.97
 Q 2-23
4
6,000

future value
7,293.04
7,864.78
8,469.49

future value
8,532.60

future value
8,565.73

Q 2-24
5,000
7
7% ‫تقدرين تسوينها باالله الماليه وانتبهي اذا بداية السنه او نهايتها‬

a. Annually 26,946.45
b. quarterly 109,934.77

c. Annually 28,832.70
d. quarterly 111,858.63

Q 2-25
6,000
6
7%

a. Annually 42,919.74
b. quarterly 177,066.10

c. Annually 45,924.13
d. quarterly 180,164.75
 Q 2-26

future value (Pmt last day) Future value (Pmt first day )
8,016.45 8,898.26
99,238.10 111,146.67
811,053.46 924,600.94
2,392,877.58 2,512,521.45

Q 2-27

prasent value (Pmt last day) prasent value (Pmt first day )
3,903.59 4,489.12
80,187.42 86,602.42
277,691.95 294,353.47
176,559.14 234,823.65

Q 2-28
500
7%
2

72.45

Q 2-29

‫تقدرين تسوينها باالله الماليه‬

3,000
5
10%

1,862.76
 Q 2-30

gold valued at 760 ‫الحل باالله الماليه‬

rate 8.1
be valued at 1,000

‫مدخالت االله‬
I/Y 8.1
PV -760
FV 1,000
CPT N

Q 2-31
3,000
4
8%

14,599.80

Q 2-32

home mortgage years 15 ‫الحل باالله المالية‬

home mortgage loan 230,000
interest rate 5

‫مدخالت االله‬
N 180
I/Y 0.41667
PV - 230,000
CPT PMT

Q 2-18

interst rate r2 (Two years) 2.33

interst rate r3 (Three years) 2.44

one year forward rate 2.66

T-bills currently earning 0.50%

= Real risk-free rate

= Default risk premium
= Liquidity risk premium
= Maturity risk premium

inflation premium 0.06%

fair interest rate 3.20%

T-bill rate
expected one-year rate
for year

Current rate %

1R1
E(1r2)
E(1r3)
E(1r4)

one-year
two-year
three-year
four-year

T-bills currently earn

You expect one year from nowT-bill rates will increase
years

current rate on two-year treasury rate security

1R1
1R2

Expected one-year interest rate %

year
Treasury security rate
expected one-year rate next year
expected one-year rate the following year

one year treasury security rate%

 Treasury securities yrars 1
treasury security rate 1
Treasury securities years 2
treasury security rate 2

expected one-year Treasury rate %

1R1
E(2r1)
‫ لصق الجدول من هنا‬E(3r1)
E(4r1)
L2
L3
‫ الى هنا‬L4

year 1
year 2
year 3
year 4

1R1
1R2
E(2r1)
liquidity premium year
 liquidity premium

year Treasury securities 1

Tresury security rate 1
year Treasury securities 2
Tresury security rate 2
one-year interest rate expected in three years E(4r1)

liquidity premium %

Yield
% 1.35
1.87
2.11
2.22

one year forward rate

Year
Year
Year
year 1
current interest rate Treasury bond 1R1
year 2
1R2
year 3
1R3

interest rate expected during year 3

present value of
received in years

annually
5%
7%
9%

semmiannually
9%

quarterly
9%
 in years
amount received today (PV)

annually
5%
7%
9%

semmiannually
9%

quarterly
9%

PMT received each year

years
interest rate

presen value of pmt last day

present value of pmt first day

‫ تقدرين تسوينها باالله الماليه وانتبهي اذا بداية السنه او نهايتها‬PMT received each year
years
interest rate

future value of pmt last day

future value of pmt first day

year interest rate (annual)
15 11%
10 12%
7 14%
11 5%

year interest rate (annual)

9 15%
15 8%
25 6%
6 33%

you deposit
earns
year

total interest

to have (FV)
in years
discount rate

Amount of deposit
 ‫‪You can save‬‬
‫‪for the next years‬‬
‫‪earning‬‬

‫‪future value‬‬

‫لو تبون االجابه تطلع‬

‫نفس الموقع بالضبط‬
‫خلو االله ‪ 5‬اصفار ‪1‬‬
‫‪2nd‬‬
‫‪format 2‬‬
‫‪dec =5 4‬‬
‫‪enter 4‬‬
‫بس بالعاده عادي يقبل‬
‫اجابه تقريبيه‬

‫‪0.0233‬‬
‫‪0.0244‬‬
 0.44%
1.15%
0.50%
1.05%

0.5

0.5
0.33
0.25
0.5

1.16

1.054
1.1709
1.061
1.067
 1.015
1.0614
1.025
1.1314

3
4
5

0.48% = 1R1
= L2 0.83% = E(2r1)
= L3 0.93% = E(3r1)
= L4 1.23% = E(4r1)
0.0235 2f1 0.0187
E(2r1) 0.0211

INTREST RATE 1.87

r1 2.11
r2
 interest rate
expected during
year 1rate 2.12%
interest
expected during
year 2 2.44

24 0.025 0.045
12 0.0275 0.05
10% 4,515.79 0.055
10% 4,454.70 0.055
11% 4,207.85
11% 4,207.85 0.0225
10% 4,423.00
11% 4,171.82
 ‫‪8‬‬
‫‪0.045‬‬

‫‪0.0225‬‬
‫‪16‬‬

‫‪28‬‬

‫‪0.0175‬‬

‫ه وانتبهي اذا بداية السنه او نهايتها‬

‫‪24‬‬
‫‪0.0175‬‬
 Payment
233
5,655
75,584
168,432

Payment
818.09
9,368.26
21,722.93
71,112.54

572.45
0.026604 3f1
 1
0.5
0.33
0.25
0.04%
0.15%
0.17%
‫انتبهي اول نسبه مكتوبه‬
‫بالسؤال مو بالجدول‬
‫اكتبي نسبة السنه المطلوبه واللي قبلها عشان‬
‫ما تضعين وقت ‪ ،‬وانتهبي ال تكتبين نسبه‬
‫‪one day‬‬