Q: Mr. Clark is corisidering another bond, Bond D. It has an 8% semiannual coupon and a $1,000 face val...
A: Face Value $ 1,000.00 Coupon rate 8% Call price $ ...
Q: To pay off a loan of R7 000 due now and a loan of R2000 due in 14 months' time, Olorato agrees to ma...
A: 1st Loan Amount = R 7,000 2nd Loan Amount = R 2,000 Interest Rate = 16%
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the questio...
Q: Assume that you start with a balance of $3600 on your credit card. During the first month, you charg...
A: Given Starting balance is $3600 First month charge is $400 Second month charge is $550
Q: Previous balance, Finance charge- Purchase- New balance 2 month Previous balance, Finance charge- Pu...
A: A credit card is issued by banks or financial institutions that allows cardholders to make payments ...
Q: an essay about saving and wealth . 2 to 3 pages includes references please
A: It is not possible to grow money on a tree. It takes time and effort to earn enough money to cover d...
Q: The real risk-free rate is 2.25%. Inflation is expected to be 2.5% this year and 4.25% during the ne...
A: The yield on treasury securities is the rate of return or interest that is paid by the government to...
Q: tandard Deviation: 10.56% Average Risk Free Rate: 2.18% Using these figures: a) Select the best o...
A: The portfolio should have good return but should be also less risky so both should be there to be be...
Q: 7. Under the Equal Credit Opportunity Act (ECOA), it is unlawful to discriminate against an applican...
A: Equal Credit Opportunity Act The ECOA law is only applicable in the United States, ECOA law is enfor...
Q: There is a bank account with a balance of $5,000 and a growth rate of 2.5% per year. How much money ...
A: Here, Initial balance = $5,000 Growth rate = 2.5% per year Time = 5 years To Find: Amount after 5 ye...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: Data given: Market price = $500 per share. D1= $4 per share Growth rate = 9% per year for an indef...
Q: hat is the future worth of P8500 deposited at the end of every month for 3 years if the interest is ...
A: The future value of money includes the amount deposited and the interest accumulated over the period...
Q: You wish to buy a house. The market value of the house is $650,000 and you have saved $120,000 as a ...
A: Interest Rate = 6.5% Time Period = 26 Years Market Value = $650,000 Down Payment = $120,000
Q: Setrakian Industries needs to raise $69.5 million to fund a new project. The company will sell bonds...
A: The number of bonds required to be sold is calculated as funds to be raised divided by bond price
Q: A promoter priced tickets to a concert as follows: $17 when purchased in advance and $20 when purcha...
A: Product mixes from a group of two items can be found by solving a system of two equations. This is a...
Q: A mortgage balance of $25,000 is to be repaid over a 10-year term by equal monthly payments at 5.6% ...
A: Loan Amount = $25,000 Interest rate = 5.6% Time Period = 10 Years
Q: andez wishes to have $368,765 in a retirement account 15 years from now. What payment would Noime ha...
A: There is need of proper planning for the retirement and proper planning lead to have good money on r...
Q: An analyst has modeled the stock of a company using the Fama-French three-factor model. The market r...
A: Market return is 12% return on the SMB portfolio (rSMB) is 2.1% return on the HML portfolio (rHML) ...
Q: I and Mrs. Dafoe are doing some estimates of the amount of funds they purchase an annuity paying S50...
A: Present value of monthly annuity would be the amount required to purchase the annuity considering ti...
Q: ABC distributes a 20% stock dividend. Before distributing the stock dividend, ABC had 20 million sha...
A: Shares outstanding = 20 million Stock dividend = 20%
Q: Assuming that revenues stayed flat (meaning the company did not try to increase sales by the 12 perc...
A: Profit depends on the expenses and if expenses decreases the profit will increase but if expenses in...
Q: You buy a Westinghouse call with an exercise price of P20 paying P2.50. If Westinghouse stock closes...
A: Exercise price (X) = P 20 Call price (C) = P 2.50 Stock price ate expiration (S) = P 24.75
Q: nare Required Compute each the follow (Ro
A: Financial ratios are classified based on financial component of the company that they measure.
Q: ABC recently completed a 5-for-1 stock split. Prior to the split, its stock sold for P120 per share....
A: Stock split = 5 for 1 Stock price before split = P120 Total market value increased = 15%
Q: A 1000ft (one lane) asphalt road costs P3.8M. It requires no upkeep until the end of 3 years when P8...
A: Time Period 20 Initial Cost P 38,00,000.00 Repair Cost at the end of 3rd year P 80,000.00 ...
Q: The higher the interest rate, the higher my future value will be. O True False
A: The given statement is correct. The future value is a concept of time value of money which states th...
Q: Yield to maturity The bond shown in the following table pays interest annually. (Click on the icon h...
A: Par Value = $1,000 Coupon Interest Rate = 7% Years to Maturity = 9 Current Value = $1,140
Q: value of P30, 000 at the end of the per iod. Compute the depreciati nd its book value after 10 years...
A: We can also find the declining depreciation by declining rate which is founded in below table and it...
Q: During the month of February, direct materials cost totaled PhP650,000 and direct labor cost was 40%...
A: Material cost = Php 650,000 Labor cost ratio = 40% Prime cost = Material cost/(1-Labor cost ratio) ...
Q: You win a lottery that will pay you $120,000 per month for 12 months, starting 1 month from now. Wha...
A: Present value of annuity in form of lottery winnings can be calculated as: = Annuity amount * Presen...
Q: How much could BTU Oil & Gas Fracking afford to spend on new equipment every start of the year for ...
A: Equipment and machinery are the most important tools and implements in the operation of a business (...
Q: Nesrin, purchased a new car for $9,420, paying $3,000 down payment and agreeing to 12 monthly paymen...
A: Credit rate: The amount charged for a credit loan or purchase is usually represented as a percentag...
Q: Is estate tax a type of debt? What happens if a person doesn't pay estate tax?
A: The estate tax is a tax imposed after a person's death on the transfer of property and other assets....
Q: Find the effective rate of the compound interest rate or investment. (Round your answer to two decim...
A: The effective rate of interest is calculated as: = [(1 + i)^number of periods] - 1
Q: What form of partnership allows some of the investors to limit their liability?
A: A limited partnership enables some of the partners to limit their liability. Under this condition...
Q: make money, we need to make än investi
A: In money and finance you need money to invest and if you do not invest you will not earn money you m...
Q: Big Rock’s directors are looking to expand into a new suite of services. Although they are doing qui...
A: The bond market, also known as the debt market, fixed-income market, or credit market, refers to all...
Q: Calculate the average monthly expenses for these individuals. 1. Kelsey spent $350 in May, $432 in J...
A: As per Bartleby Honor Code, when multiple questions are asked, the expert is required only to solve ...
Q: A stock is currently selling for S0 = $200: Over each of the next 6 months it is expected to grow by...
A: Here; One period is 6 months Time period is 1 year Expected upside movement is 10% Expected downsid...
Q: Melissa is glancing at this document that shows a financial summary of Cheesy Company's operations d...
A: Every company needs to prepare the financial statements for the financial year.
Q: E2. A 41-year-old consulting engineer wants to set up a retirement fund to be used starting at age 6...
A: Amount deposited now (D) = $20000 n = 65 years - 41 years = 24 years r = 6%
Q: An auto insurance company is implementing a new bonus system. In each month, if a policyholder does ...
A: Given Number of Policy Holders = 1000 Low Risk Drivers = 350 High Risk Drivers = 650
Q: An initial investment amount P, an annual interest rate r, and a time t are given. Find the future v...
A: Future value is the compounded value of an initial sum of money. It includes the initial amount as w...
Q: Do you think investors should practice dollar cost averaging when investing their money? Why or why ...
A: Dollar-Cost Averaging: Dollar-Cost averaging is an investment approach that involves investing an an...
Q: riselda got interested with government borrowings.. She decided to invest in short- ated instruments...
A: There are government securities that are issued by the government to raise the money and some are sh...
Q: Imagine that you are importing pasta from Italy and reselling it in the United States. Your largest ...
A: Forward rate agreement helps the buyer of a currency to buy the required currency at a future rate f...
Q: Calculate the Forward Contract Value of an asset with the following data points: • Current Spot Pric...
A: The spot price plus carrying cost and interest is known as forward price. Under forward contracts lo...
Q: 5 Variable Growth A fast growing firm recently paid a dividend of $0.50 per share. The dividend is e...
A: The value of stock will the present value of all its dividend and the present value of terminal valu...
Q: Carlo and Elise loves to play lottery. They just won Php10,000 in the GongDi WangBu lottery. They de...
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified...
Q: MACRS stands for a. Modified Annual Cost Recovery System b. Modified Audited Cost Recovery System c....
A: As per Internal Revenue Service (IRS) depreciation is an income tax deduction which allows businesse...
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- Question 3: What are the pros and cons of using options traded in the over-the-counter market and in an exchange for hedging? Plz explain itWhy do you think the most actively traded options tend to be the ones that are near the money?What are derivatives? How can derivatives be used to reduce risk? Can derivatives be used to increase risk? Explain thoroughly.
- Provide short answers to the following questions k) What is an efficient set of securities? l) Is it true that a market which is efficient in its semi-strong form is automatically efficient in its weakform?Which one of the following is the hypothesis that securities markets are efficient? Multiple Choice A Geometric market hypothesis B Standard deviation hypothesis C Efficient markets hypothesis D Capital market hypothesis E Financial markets hypothesisWhat is a forward hedge market and a derivatives market?
- What does vega measure? What can you tell from vega value? Can the vega of a derivatives portfolio be changed by taking a position in the underlying asset? Explain your answer.1. If the efficient market hypothesis is true, what are the implications for the investors?How is it possible to have arbitrage in an efficient market? Explain.Answer :
- 2) Suggest what is the best financial instrument to offset market risk exposure and from market volatility? WHY?. Answer the following in a couple of sentences . a) Why is this course called financial derivatives? b) Why do we use derivatives?What are considered the driving forces of the derivatives market? Rank them in order of importance and provide a reason for your answer: Driving Force Ranking Reason
