Interest-rate volatility estimate for absolute rate change

Assignment Help Financial Management
Reference no: EM131347663

Suppose that the weekly interest-rate volatility estimate for the absolute rate change is 3.85 basis points. What is the annualized volatility for the absolute rate change, in basis points? a) 27.76 b) 200.20 c) 200.75 d) None of the above

Reference no: EM131347663

Questions Cloud

The same dollar stake in the company after the issue : The Okuno Corporation is making a rights issue at $5 a share of one new share for every two shares currently held. The stock price before the issue was $20. Suppose that you currently own 2000 shares and that you wish to maintain the same dollar stak..
Standard deviation of the return of the portfolio : The risk measured by the standard deviation of the return of the portfolio relative to the return of the benchmark index is:
About the barclays capital liquidity cost score : Which of the following statement(s) is (are) correct about the Barclays Capital Liquidity Cost Score (LCS)? The higher the LCS the better since there would be more liquidity.
True about shifting interest mechanism : In the non-agency RMBS, Which of the following statement(s) is/are true about shifting interest mechanism?
Interest-rate volatility estimate for absolute rate change : Suppose that the weekly interest-rate volatility estimate for the absolute rate change is 3.85 basis points. What is the annualized volatility for the absolute rate change, in basis points?
What is the company cost of preferred stock : Torch industries can issue perpetual preferred stock at a price of $57.00 a share. The stock would pay a constant annual dividend of $6.00 a share. What is the company's cost of preferred stock, Rp?
What is the firm gain or loss and break-even point : The Warren Watch Company sells watches for $26, fixed costs are $180,000, and variable costs are $12 per watch. What is the firm's gain or loss at sales of 9,000 watches? What would happen to the break-even point if the selling price was raised to $3..
Based on expected value analysis : You decide to go into business with your best partner. You will open a express copy service (20 points) You will invest $25,000 in equipment You will pay $1,500 in rent Your hire staff for $2,000 per month You and your partner assign yourself a salar..
What is the length of the cash conversion cycle : Zane Corporation has an inventory conversion period of 42 days, an average collection period of 39 days, and a payables deferral period of 44 days. Assume 365 days in year for your calculations. What is the length of the cash conversion cycle?

Reviews

Write a Review

Financial Management Questions & Answers

  Recently issued two types of bonds

Pierre Imports recently issued two types of bonds. The first issue consisted of 10-year straight debt with a 9 percent annual coupon. The second issue consisted of 10-year bonds with a 8 percent annual coupon and attached warrants. Discuss 3 advantag..

  About the warranties

Clearview Company manufactures and sells high-quality television sets. The most popular line sells for $1,300 each and is accompanied by a three-year warranty to repair, free of charge, any defective unit. Average costs to repair each defective unit ..

  Representing tech marketing

Assume Michael, representing Tech Marketing, went to the bank to obtain a mortgage. The bank will present an interest rate that reflects their perception of the kind of credit risk Tech Marketing would present. What four questions do you think they m..

  About the retirement fund

Your aunt and uncle have asked your help in setting up their estate plan. They currently have $3,000,000 in their retirement fund. They wish to know the maximum amount that they can withdraw each month over a twenty-five year period and still have $8..

  What is company weighted average flotation cost

Suppose your company needs $10 million to build a new assembly line. Your target debt−equity ratio is .4. The flotation cost for new equity is 10 percent, but the flotation cost for debt is only 7 percent. What is your company's weighted average flot..

  Estimate your insurance needs using the DINK method

You and your spouse are in good health and have reasonably secure careers. Each of you makes about $40,000 annually. You own a home with an $80,000 mortgage, and you owe $15,000 on car loans, $5,000 on personal debts, and $4,000 on credit card loans...

  The central bank decides to push long run inflation to zero

How The central bank decides to push long-run inflation to zero events affect the risk of a liquidity trap?- The neutral real interest rate rises.

  The company pledges to increase its dividend

Caan Corporation will pay a $2.94 per share dividend next year. The company pledges to increase its dividend by 4.5 percent per year indefinitely. If you require a return of 12 percent on your investment, how much will you pay for the company’s stock..

  Its securities have been performing very well in marketplace

First Rate Ballroom, Inc, a national convention planner has 2,500 common shares and 1,000 bonds outstanding. Its securities have been performing very well in the marketplace. It enjoys a common stock price of $45 per share, up from 35 a year ago. It ..

  What is the value of their shares of stock

Paradise Adventures just paid a dividend of $2.00. They are growing rapidly and are expecting to grow dividends at 20% for the next two years and then 10% in the third year before reducing the dividends to a constant growth rate of 3%. If the require..

  Calculate the cash flow effect of nickolas restructuring

Calculate the cash flow effect of Nickolas restructuring during fiscal 2014 - What affect did this have on The Bean's consolidated income statement for the current year?

  Restructuring charges as they attempt to reduce costs

Many companies incur restructuring charges as they attempt to reduce costs. They often label these items in the income statement as “non-recurring” charges to suggest that they are isolated events which are unlikely to occur in future periods. What i..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd