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Use Home Quiz 11. Today is 1 July 2019. John is 30 years aged today. He is planning to escheatmentan hall with the charge of $800,000 on 1 January 2024. John believes that, atthe opportunity of purchasing the lineage, he should entertain savings to overspread 20% of the lineagecharge (i.e., $160,000) on 1 January 2024.John has a portfolio which consists of span Treasury manacles and a bank charges (hence-forth applyred to as manacleA, manacleBand bank chargesC). There are 200 individuals of manacleA,300 individuals of manacleBand 400 individuals of bank chargesC. (35 marks)a. [12 marks]•BondAis a Treasury manacle which matures on 1 July 2030. Single individual ofbondAhas a coupon objurgate ofj2= 3.95% p.a. and a visage appraise of $100.John escheatmentd this Treasury manacle on 15 February 2017. The escheatmentgrant objurgate wasj2= 3.85% p.a.•BondBis a Treasury manacle which matures on 1 January 2026. Single individualof manacleBhas a coupon objurgate ofj2= 3.7% p.a. and a visage appraise of $100.John escheatmentd this Treasury manacle on 1 July 2016. The escheatment grantobjurgate wasj2= 4.1% p.a.•Bank chargesCis a 180-day bank charges which matures on 1 September 2019.Single individual of bank chargesChas a visage appraise of $100. John escheatmentd thisbank charges on 15 April 2019. The escheatment grant objurgate was 3.05% p.a.(unsophisticated catruth objurgate).Calculate•The escheatment charge of single individual of manacleA•The escheatment charge of single individual of manacleB•The escheatment charge of single individual of bank chargesCCircular your exculpation to three decimal places. The charge of twain manacleAandBshould be adapted by using the RBA arrangement. You should apply to week 3’smaterials ce this RBA arrangement.1ACST201Financial ModellingUse Home Quiz 1 S2 2019
b. [8 marks] John decides to hawk each of the three protection types today. Twain thebonds are saged at a grant objurgate ofj2= 3.2% p.a. and the bank charges is saged at 3%p.a. (unsophisticated catruth objurgate).Calculate•The sale charge of single individual of manacleA•The sale charge of single individual of manacleB•The sale charge of single individual of bank chargesCCircular your exculpation to three decimal places. Then estimate the aggregate sale chargeof the portfolio (circular your exculpation to the rectilinear dollar). Still n ess that the saleof each manacle occurs following a coupon liquidation.c. [4 marks] John plans to truth $80,000 of the sale proceeds adapted in dissect bto endue into a stock today. John predicts that the reappear objurgate of this stockwill be1 July 2019 to 30 June 2021j2= 5.1%1 July 2021 to 31 December 2023j2= 5.3%Estimate the accumulated appraise of John’s stock enduement on 1 January 2024(circular your exculpation to immodest decimal places.).d. [6 marks] To secure ce fostering required aggregate on 1 January 2024 (thedifference among the 20% of the lineage charge and the accumulated appraise fromdissect c), John plans to depositz% of his annual following-tax stipend into a savingrecital on 1 July of each year from 2019 to 2023 (5 deposits in aggregate). Thesaving recital objurgates are antecedent to be 0.2% per month. Assume that John’safter-tax stipend is $90,000 p.a. Find the appraise ofz(developed as a percentageand circulared to span decimal places).e. [5 marks] From John’s perspective, inhale a carefully labelled money glide diagramto personate the over financial transactions of dissects c and d.End2ACST201Financial ModellingUse Home Quiz 1 S2 2019
The yielding deadline of Use Home Quiz 1 yielding dissect isAugust 202018, 9:00AM. You want to acquiesce your separations (in singlePDFfile) to the linkon iLearn to full the yielding dissect of this toll. It can be typed orhandwritten and scanned. You want to pretence the afloat steps in your separation.Please apply to the Toll yielding influence on iLearn ce exalt yieldingdetails. Please still n ess that uploading a rasp can use up to 15 minutes. You wantto acquiesce your rasp at lowest 20 minutes precedently the deadline to fix a successfulsubmission.3ACST201Financial ModellingUse Home Quiz 1 S2 2019