Podcast
Questions and Answers
What is the Bid-offer spread in the unit fund for year 2?
What is the Bid-offer spread in the unit fund for year 2?
- 1000
- 1025 (correct)
- 157.5
- 950
What is the number of survivors in year 46?
What is the number of survivors in year 46?
- 0.001465
- 0.999512 (correct)
- 0.001622
- 0.001802
What is the After growth and FMC for year 3 in the unit fund?
What is the After growth and FMC for year 3 in the unit fund?
- 64713
- 40609.47 (correct)
- 410.20
- 19332
What is the Unallocated Bid in year 3 for the Non-Unit Fund?
What is the Unallocated Bid in year 3 for the Non-Unit Fund?
What is the Profit for year 2 in the Non-Unit Fund?
What is the Profit for year 2 in the Non-Unit Fund?
What does Bid-offer spread represent in unit-linked funds?
What does Bid-offer spread represent in unit-linked funds?
What will be the source of profit for the company in the given scenario?
What will be the source of profit for the company in the given scenario?
What is the present value of all benefits mentioned in the text?
What is the present value of all benefits mentioned in the text?
Why is the flat rate of interest not a good measure for the cost of borrowing?
Why is the flat rate of interest not a good measure for the cost of borrowing?
What is the flat rate of interest paid by the customer on the loan?
What is the flat rate of interest paid by the customer on the loan?
What is the PV of payments received by the bank, assuming the bank is correct?
What is the PV of payments received by the bank, assuming the bank is correct?
According to the text, what will be the source of profit for the company?
According to the text, what will be the source of profit for the company?
What is the PV of repayments if the consumer forum is correct?
What is the PV of repayments if the consumer forum is correct?
What does PV stand for in financial calculations?
What does PV stand for in financial calculations?
What does PV of annuity equal to as per the information provided?
What does PV of annuity equal to as per the information provided?
Why is the flat rate of interest not a good measure for cost of borrowing as per information provided?
Why is the flat rate of interest not a good measure for cost of borrowing as per information provided?
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Study Notes
Year 2 Calculations
- Bid-offer spread in the unit fund for year 2 is unknown (require more context)
Year 3 Calculations
- After growth and FMC for year 3 in the unit fund is unknown (require more context)
- Unallocated Bid in year 3 for the Non-Unit Fund is unknown (require more context)
Profit Calculations
- Profit for year 2 in the Non-Unit Fund is unknown (require more context)
Bid-Offer Spread
- Bid-offer spread represents the difference between the price at which a unit-linked fund buys and sells units
Profit Source
- The source of profit for the company will be the difference between the bid and offer prices
Present Value
- PV stands for Present Value in financial calculations
- PV of annuity equals the sum of the present values of each payment
Interest Rates
- Flat rate of interest is not a good measure for the cost of borrowing because it does not take into account the timing of payments
- Flat rate of interest paid by the customer on the loan is unknown (require more context)
- PV of payments received by the bank assuming the bank is correct is unknown (require more context)
- PV of repayments if the consumer forum is correct is unknown (require more context)
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