1. The family is another sort of internal market. How could transfer prices, relational contracts, and prediction markets be used within a family?
2. On August 1 a portfolio manager has a bond portfolio worth $10 million. The duration of the portfolio in October will be 7.1 years. The December Treasury bond futures price is currently 91-12 and the cheapest-to-deliver bond will have a duration of 8.8 years at maturity. How should the portfolio manager immunize the portfolio against changes in interest rates over the next two months?
3. It is May 5, 2013. The quoted price of a government bond with a 12% coupon that matures on July 27, 2024, is 110-17. What is the cash price?
4. TOPIC: CAPITAL BUDGETING IN A CORPORATE SECTOR
Things to do:
Expound the following alternative courses of actions in order to make the company grow ( in two paragraphs each)
1- Forecasting current and future cash flows
2- Formulation of Long-term goals
3- Production of products better than competitors.