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You are required to evaluate each payment method and suggest your preferred method with workings.
How much more do you need to invest per month to have $1M at retirement? Why is this amount so much greater than the difference between 20 and 25?
What would happen to the price of a three-year coupon-paying bond, with a face value of $100 and a coupon rate of 10% per annum.
One year later, the bond is called by the issuer at $1020 due to the good interest rate. What is the Yield-to-Call?
Find the portfolio's Macaulay duration. Express your answer in years with two digits after the decimal point.
You own a stock that had total returns of -6.52, 5.92, 6.99, 7.09, -5.79, 5.07, over the last seven years. What is the arithmetic average return for this stock?
You make a $1,300.00 down payment and have a fair credit score. How much interest is due at the end of the first month?
What's the difference between corporate bonds and government bonds? Why are corporate bonds important in a firm's capital structure with citations and source?
Calculate the current annual interest rates, and the expected future dollar-pound spot rate in one year assuming parity holds.
What were your 2 biggest expense categories? How could you save some money in each category?
What is your levered cost of equity? What is one bond provision that might make you less worried in this situation?
What is the largest premium Big could justify offering for Little? How many new shares should Big issue to compensate Little?
The term structure is flat with 8% interest rate (continuous compounding). What is the cash futures price if the contract were written on the 9% bond?
How many futures contracts on the underlying asset should be traded? What is the hedge effectiveness? What does this hedge effectiveness mean?
a. Excel has until December 15, 2022 to commence an action for breach of contract b. Excel has until April 1, 2022 to commence an action for breach of contract
A beef cattle farmer hedges their beef price exposure with forward contracts. List three advantages and three disadvantages of this hedging strategy.
How many futures contracts on asset B should be traded? What is the hedge effectiveness? How can you interpret this number?
if your required rate of return is 13 percent, what is the value of the bond? How would your answer change if the interest were paid annually?
Red Dirt Enterprises is projecting the following future cash flows: $250,000 next year, $285,000. What is the value of operations for the firm?
At the end of every year, you analyze the performance and rebalance your retirement portfolio. What was the Sharpe ratio of your portfolio?
Which action would be better? Can you think of some specific corporate actions that might have these general tendencies?
In 2-3 sentences, explain why you are a loyal customer to this business. List 2 specific actions this business has taken to encourage customer loyalty.
A firm is considering making a seasoned equity offering. Based on the current share price, what will be the firm's share price after the issue?
If we divide users of ratios into short-term lenders, long-term lenders, and stockholders. Why might disinflation prove to be favorable to financial assets?