Saudi Electronic University Investors Holding Period Cash Inflow & Outflow Worksheet
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Question: 1 – If a government bond is expected to mature in two years and has a current price of $950, what is the bond’s YTM if it has a par value of $1,000 and a promised coupon rate of 10 percent? Suppose this bond is sold one year after purchase for a price of $970. What would this investor’s holding period yield be?

Question: 2- Suppose that a bank faces the following cash inflows and outflows during the coming week:

(a) Deposit withdrawals are expected to total $33 million,

(b) Customer loan repayments are expected to amount to $108 million,

(c) Operating expenses demanding cash payment will probably approach $51 million,

(d) Acceptable new loan requests should reach $294 million,

(e) Sales of bank assets are projected to be $18 million,

(f) New deposits should total $670 million,

(g) Borrowings from the money market are expected to be about $43 million,

(h) Non deposit service fees should amount to $27 million,

(i) Previous bank borrowings totaling $23 million are scheduled to be repaid, and

(j) A dividend payment to bank stockholders of $140 million is scheduled.

What is this bank\u2019s projected net liquidity position for the coming week?



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