AFM131 Lecture 11: AFM131 Lecture 10: AFM131: Marketing - Managing the Marketing Mix

Can you please help solve the formula portions and show theformulas used?

PROBLEM DATA

The University Club recently issued $1,500,000 of 10-year, 9%bonds at an effective interest rate of 10%. Bond interest ispayable annually.

REQUIREMENTS

1. You have been asked to calculate the issuance price of thebonds and prepare amortization schedules for any discount orpremium. The worksheet BONDS has been provided to assist you. Notethat the worksheet contains a scratch pad at the bottom that hasbeen preprogrammed to automatically compute and display therelevant cash flows needed for bond pricing.

2. The bond pricing formula will utilize the NPV (Net PresentValue) function on your spreadsheet program. The NPV function willautomatically compute the net present value of annual future cashflows discounted at a specific interest rate. The interest rateshould be expressed as a cell address.

Valuation of Assets. Using the information provided in the following table, find the value of each asset.

Cash Flow

Asset End of year Amount Appropriate requited return

A 1 $5,000 18%

2 5,000

3 5,000

B 1 Through ∞ $ 300 15%

C 1 $0 16%

2 0

3 0

4 0

5 35,000

D 1 Through 5 $ 1,500 12%

6 8,500

E 1 $ 2,000 14%

2 3,000

3 5,000

4 7,000

5 4,000

6 1,000

Please help with the below problem. I don't understand how to solve. Please show work and steps so I will understand.

Apply cluster analysis to the numerical data in the excel file credit approval decisions. Analyze the clusters and determine if cluster analysis would be a useful classification method for approving or rejecting loan application.

Modified Credit Approval Decisions

Homeowner Credit Score Years of Credit History Revolving Balance Revolving Utilization Decision

1 725 20 $11,320 25% 1

1 573 9 $7,200 70% 0

1 677 11 $20,000 55% 1

0 625 15 $12,800 65% 0

0 527 12 $5,700 75% 0

1 795 22 $9,000 12% 1

0 733 7 $35,200 20% 1

0 620 5 $22,800 62% 0

1 591 17 $16,500 50% 0

1 660 24 $9,200 35% 1

1 700 19 $22,000 18% 1

1 500 16 $12,500 83% 0

1 565 6 $7,700 70% 0

0 620 3 $37,400 87% 0

1 774 13 $6,100 7% 1

1 802 10 $10,500 5% 1

0 640 7 $17,300 59% 0

0 523 14 $27,000 79% 0

1 811 20 $13,400 3% 1

0 763 2 $11,200 70% 0

0 555 4 $2,500 100% 0

0 617 9 $8,400 34% 0

1 642 13 $16,000 25% 1

0 688 3 $3,300 11% 1

1 649 12 $7,500 5% 1

1 695 15 $20,300 22% 1

1 701 9 $11,700 15% 1

0 635 7 $29,100 85% 0

0 507 2 $2,000 100% 0

1 677 12 $7,600 9% 1

0 485 5 $1,000 80% 0

0 582 3 $8,500 65% 0

1 699 17 $12,800 27% 1

1 703 22 $10,000 20% 1

0 585 18 $31,000 78% 0

1 620 8 $16,200 55% 0

1 695 16 $9,700 11% 1

1 774 13 $6,100 7% 1

1 802 10 $10,500 5% 1

0 640 7 $17,300 59% 0

0 536 14 $27,000 79% 0

1 801 20 $13,400 3% 1

0 760 2 $11,200 70% 0

0 567 4 $2,200 95% 0

0 600 10 $12,050 81% 0

1 702 11 $11,700 15% 1

1 636 8 $29,100 85% 0

0 509 3 $2,000 100% 0

0 595 18 $29,000 78% 0

1 733 15 $13,000 24% 1

New Data to Classify

Homeowner Credit Score Years of Credit History Revolving Balance Revolving Utilization Decision

1 700 8 $21,000 15%

0 520 1 $4,000 90%

1 650 10 $8,500.00 25%

0 602 7 $16,300.00 70%

0 549 2 $2,500.00 90%

1 742 15 $16,700.00 18%