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Ten year German government bond yield is 4.3 %. The yield for Betaland's government bond is 6.1%. These are annual yields.
Assuming German government bond risk-free, what is the expected probability of default of Betaland for the next 10 years?
Let us assume the following deposit rates
| Maturity | % |
| 1 year deposit | 4 |
| 2 year deposit | 4.4 |
Please calculate the expected forward interest rate for deposit starting at the end of first year and lasting one year (one year forward rate).
If EUR/USD=1.37 and EUR/JPY=143.32 then what would be the exchange rate for USD/JPY which excludes the possibility of arbitrage?
One period loan contract has a principal amount of 100000 EUR.
The probability of default is 7.2 %.
In case of default on average 50% of principal value of the loan is lost due to the legal costs and fire sales price of the collateral.
What is Expected Loss of this loan contract?
Imagine that you will invest into appartment which delivers you a net cash flow (after all expenses) of 7000 EUR per year. This cash flow lasts forever. What would be a price of this appartment if the discount rate of such projects would be 2.1%?
If average stock portfolio would yield 8.7% per annum then how much time would it take for a portfolio to increase 3 times in value if all profits are reinvested? State the answer as a number with 2 decimals (for example, 13.02).