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As reported by the Bureau of Labor Statistics, the CPI for 2004 was 189.7 (using a Base Year of 1983 = 100). The CPI for 2005 was 196.1. Based on this data, what was the inflation rate for 2005?
$40 million in new securities are added to the portfolio, increasing the duration of the portfolio to 12.5 years. What is the duration of the $40 million in new securities?
Calculate the duration of a $1,000 6% coupon bond with three years to maturity. Assume that all market interest rates are 7%.
35% was sold for $997, and the last 20% was sold for $996. What would be the weighted average price paid by a noncompetitive bid?
If the Treasury also received $750 million in noncompetitive bids, who will receive T-bills, what quantity, and at what price?
Two projects of equal life, A and B, are analyzed using ranking present worth analysis with MARR at i%. It is found that PW(A) > PW(B). If MARR is changed to (i+1)%, what will be the relationship
The terms require you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2?
Payments of $250.00 at the end of each quarter and then pay off the principal amount at the end of the year. What is the effective annual rate on the loan?
If an investment has a cumulative 63.45% rate of return over 3.78 years, what is the annual continuously compounded rate of return?
The first payment coming immediately. The going rate on such annuities is 5.25%. How much would it cost him to buy the annuity today?
Suppose the 1-year continuously compounded interest rate is 12%. What is the effective annual interest rate?
When using annual worth to evaluate the attractiveness of a single alternative, what value is the calculated AW compared to in determining if an investment is attractive?
A successful alumnus gives State University $2 million to establish an endowed scholarship fund. If the university can invest at 5%/yr and gives $100,000 in scholarships each year, for how many year
Mansi Inc is considering a project that has the following cash flow data. What's the project's payback?
Define the following terms and identify their roles in finance. (Need a paragraph for answers)
An investment generates $10,000 per year for 25 years. If you can earn 10 percent on other investments, what is the current value of this investment? If its current price is $120,000, should you bu
What nominal interest rate would you require from the bank over the next year? How much money will you have at the end of one year?
How is the marginal cost of the various component capital sources determined?
What is the investment opportunity curve and how is it accomplished?
What information is needed to prepare a cash budget? What is the relationship between an operating and a cash budget? Why is it important for an organization to prepare a cash budget?
Property taxes in DeKalb County are roughly 2.66% of the purchase price every year. If you just bought a $100,000 home, what is the PV of all the future property tax payments?
Consider a bond with a 7% annual coupon and a face value of $1,000. What relationship do you observe between yield to maturity and the current market value?
The accuracy of the percent of sales forecast method is impaired if:
A 1-year discount bond with a face value of $1,000 was purchased for $900. What is the yield to maturity? What is the yield on a discount basis?
A 7-year, $1,000 par bond has an 8% annual coupon and is currently yielding 7.5%. The bond can be called in 2 years at a call price of $1,010. What is the bond yielding, assuming it will be called