forward rates are given ; 6month; 5% 12 month; 4.5% 18month; 3% 24 month; 2% are we in a state of backwardation, contango or flat?

Q: What is the correlation coefficient between returns on any efficient portfolio and returns on the…

A: Efficient portfolio is a type of portfolio which has eliminated all the non-systematic risk in the…

Q: Compute and Interpret Liquidity, Solvency and Coverage Ratios Selected balance sheet and income…

A: The current ratio indicates the ability of the company in terms of liquidity. It measures whether…

Q: If a lending institution stipulates that a borrower must maintain an adequate insurance policy, this…

A: A loan is a type of debt that a person or another entity assumes. The lender, which is often a…

Q: Assume that Congress is considering a new bill called the Paid Parental and Medical Leave (PPML)…

A: In the given case, we have to determine the NPV of the program’s costs and revenues and then…

Q: Which of the following would be the first source of capital? a   Internal funds B) Stock issuance…

A: Capital of a company, The fund required by a company on a daily basis to run its operations is known…

Q: You want to quit your job and go back to school for a law degree 4 years from now, and you plan to…

A: Amount saved per year is $6,400 The time period is 4 years The interest rate is 4.7% The mode of…

Q: 1. A special manufacturing and handling device was purchased by Alfonso Manufacturing for $200,000…

A: Net present value refers to the difference between the inflows and outflows of cash during a…

Q: A machine costs $100,000 and generates $25,000 of pre-tax operating income per year.  The tax rate…

A: The NPV of an asset is used to measure its profitability by discounting the future cash flows to…

Q: se XYZ stock’s price is $40 and the continuously compounded interest rate is 5%. a. What is the…

A: Forward price is the prices that are expected to be based on the spot prices and they carry the cost…

Q: currently

A: 1. Hedging through Forward  2.  Believing in the advice of the Financial Controller. 3. Money Market…

Q: Calculate the accrued interest (in $) and the total proceeds (in $) of the bond sale. (Round your…

A: Accrued interest It is the unpaid interest, due in between two payments. The accrued interest is…

Q: Given total Sales of 300.000, gross margin equal to 40% of Sales, total Expenses of 84.000, interest…

A: concept. Result to sales = Result * 100Sales (Here , result = Net income).

Q: A company borrowed at 3.27% compounded annually to purchase equipment, agreeing to make payments of…

A: Loan: The loan represents the amount borrowed by the borrower from the lender. The borrower markets…

Q: Which of the following are common POSITIVE bank covenants? Indicate ALL that apply. Achieve a…

A: A bank covenant is an agreement between a borrower and a lender which governs the terms of the loan.…

Q: Question 27 Karlos has a health insurance policy with $20 deductible and 20% copay. If his medical…

A: A health insurance policy is a contract between an individual or group and a health insurance…

Q: unded to the

A: Annual Depreciation  Expenses = (Cost of fixture- Salvage value )/  4

Q: Suppose you have $30000 to invest. The interest rate is 8% compounded continuously. How much can you…

A: The amount that can be withdrawn after 20 years is calculated using following equation Value at the…

Q: Solve the problem using the information given in the table and the weighted-average inventory…

A: Number of Units Sold 67 units Date of Purchase Units Cost per unit Beginning Inventory 25…

Q: Calculate the accumulated value of monthly payments of $100.00 made at the end of each month for ten…

A: The regular fixed periodic payments made either at the end or at the beginning of each interval are…

Q: Suppose you short sell 100 shares of Twitter priced at $50 a share. The initial margin is 50% and…

A: You have a short position. We need to show the initial balance sheet. We need to find the price that…

Q: Keith bought a lakeside cottage for 30% down and monthly mortgage payments of $1224.51 at the…

A: The purchase price of an asset can be derived as the present value of all future cash flows…

Q: A defined benefit plan has 100 employees with a majority of them over age 40. The pension fund…

A: Defined benefit plan - This is an employer sponsored predetermined pension payment plan. This plan…

Q: Which of the following are in keeping with Corporate Governance?     a   Shareholders own the…

A: Corporate governance is a set of systems on the back of which a company moves forward in a…

Q: Historically small firm stocks have earned higher returns than large firm stocks. When viewed in the…

A: Before investing in any security, investors should determine how much return they can earn from the…

Q: Nick received a loan of $5000 from a bank to purchase a bike. He obtained the loan at an interest…

A: Amortization Schedule: The amortization schedule represents a table consisting of periodic loan…

Q: An investment had a nominal return of 11.8 percent last year. If the real return on the investment…

A: Nominal rate = 11.8% Real rate = 8.7%

Q: Jack's Construction Co has 100,000 bonds outstanding that are selling at par value.  The bonds yield…

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Q: A contract can be fulfilled by making an immediate payment of $7262, or equal payments at the end of…

A: Present value The value of an investment today is known as its present value. Present value is the…

Q: 4. Assume a client provide you with the following information. How long would their retirement…

A: Retirement planning is a way of safeguarding the future after retirement as we would not be able to…

Q: You are evaluating two investment alternatives. One is a passive market portfolio with an expected…

A: Calculation of Sharpe ratio of actively managed fund.

Q: Suppose that, on 5 November 2020, you opened a short position in a two-year futures contract on the…

A: concept. Future price = spot price * ert where , r = interest rate t= time period.

Q: John already has $19,598 in his savings account. He plans to make contributions of $753.35 at the…

A: The banks generally offer compounding interest, The interest is earned on interest and the interest…

Q: New-Project Analysis The Campbell Company is considering adding a robotic paint sprayer to its…

A: NPV NPV is a capital budgeting tool to decide on whether the capital project should be accepted or…

Q: Ketchup Corporation is currently trading at $35 per share. There are 8 million shares outstanding,…

A: When you invest money in the stock market than it is possible that you may get extra ordinary profit…

Q: Stock in Jansen Industries has a beta of 1.2. The market risk premium is 5 percent, and T-bills are…

A:

Q: Workman Software has 9.8 percent coupon bonds on the market with 10 years to maturity. The bonds…

A: Bond ytm refers to the discount rate or the return earned if bond is held till it matures. Current…

Q: Albert obliged to pay his liability to PWONG Multipurpose Cooperative amounting to Php450,000.00…

A:

Q: Scheduled payments of $730 due today, $945 due in 3 months, and $935 due in 6 months are to be…

A: The time value of money mentions that the value of money changes with time. The worth of the money…

Q: Watch the scene in Moneyball when Billy Beane (Brad Pitt) upends the meeting with the personnel…

A: The Moneyball scene when Billy Beane (Brad Pitt) upends the meeting with the personnel scouting team…

Q: Outline briefly the steps a plant manager may take to boost EVA quickly.

A: Economic Value Added (EVA) is a measure of a company's financial performance that takes into account…

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A: A sinking fund is a fund set up to pay off future debt. A fixed amount is put in at regular…

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A: The Present Value of Ordinary Annuity refers to the concept which gives out the discounted or…

Q: When using the Black Scholes method, does volatility affect the price of puts and calls in the same…

A: Black scholes Model is a technique which is used to value a call  “C” or a put option. It considers…

Q: how did they get the Income Before Tax?

A: Income before tax: Income before tax represents the net earnings of the firm without taking into…

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Q: Regular contributions of $200 are made at the end of each month for five years into a savings…

A: An annuity is the stream of equal periodic cash flows over specific time period. Annuity can be two…

Q: A preferred stock from Duquesne Light Company (DQUPRA) pays $3.55 in annual dividends. If the…

A: Annual dividend (D) = $3.55 Required return (r) = 0.067   Value of the stock = ?

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A: Portfolio's expected return is calculated using following equation Portfolio's expected return =…

Q: The share price of a company reflects the market's opinion about the company. Which of the following…

A: The share prices of company will be derived through the market consensus and interaction of demand…

Instruments of Foreign Exchange Market

Foreign exchange is a worldwide market in which one nation’s currency is converted into another nation’s currency. In further terms, exchanging of nations currency with foreign currencies. Foreign exchange happens at a specified rate which is termed the foreign exchange rate. The exchange rates are not constant continuously changing as they are derived by market forces of supply and demand. Widely used foreign currencies are the United States- dollar, Euro, Japanese Yen, British pound, and Australian dollar. US- dollar is the most denominated foreign currency. The Euro to US dollar is a widely used currency pair in the forex market as these two currencies represent the world’s enormous economy. Forex trade is simple as exchanging currencies at the bank. The main players of forex markets are the central banks, financial institutions, intermediaries, investments banks, and other banks. Central Bank is the supreme player who decides the currency value of their own nation on the forex market. Mostly foreign exchange-traded at FX market (forex market) when tourists’ visits a foreign country, import, and export happens between two countries.