Financial Analysis | Assignment-1

Financial Analysis

FINANCE 1
Part 1
Part 1 is based on the topic of “Time Value of Money”. There are six questions in the Part 1
which is based on time value of money and these are:
1.
A.
Given Data
APR 6%
Years 5
Periods 60
Periodic Rate 0.50%
PMT
$
891.00
It has been determined that the amount borrowed by BLX is $46,087.47 in 5 years with the
0.50% of periodic rate.
B.
Given Data
Annual Revenue
(million)
$
247.70
Annual Rate of growth 9.90%
Annual revenue in 5 ?

FINANCE 2
years
Annual revenue in 5
years
$1,509.2
3
According to the evaluation, the annual revenue of the company in the 5 years is $1509.23 with
the annual growth rate of 9.90%.
C.
Loan A Loan B Loan C
Rate 5.45% 5.50% 5.40%
Compounding Monthly
Semi
Annually Daily
EAR = 5.59% 5.63% 5.60%
There are three loans of BLX such as Loan A, Loan B, and Loan C. The EAR of three loans are
5.59%, 5.63% and 5.60% in Loan A, Loan B, and Loan C respectively. As per the evaluation of
all three loans, Loan A is least effective as EAR is 5.59% which is less than the other loans that
is why; Loan A must be selected.
D.
Computation of amount of payments of loan

FINANCE 3
Given Data
Loan amount $ 1,650,000.00
Year of loan 20
Number of periods 40
Interest rate (annual) 4.20%
Applicable rate 2.10%
The semi-annual payment of the company is $61,379.81 to make the loan of 20 years of
$1,650,000 with the applicable rate is 2.10% and interest rate is 4.20%.
E. Calculation of Yield of Maturity of Bonds
Given Data
C 5.85%
F
$1,000.0
0
P $922.00
N 6
YTM (solution) 7.44%
The evaluation of Yield of Maturity of Bonds is 7.44%.
F.