Reference no: EM132204017
1. A bond has a face value of $1,000 and five years to maturity. This bond has a coupon rate of 13% and is selling in the market today for $902. Coupon payments are made annually on this bond. What is the yield-to-maturity (YTM) for this bond?_____
A) 13.25%
B) 12.75%
C) 16.00%
D) 11.45%
2. If the hedge ratio is 0.96, the portfolio value is $10 million, the current price of a futures contract is $100,000, then the number of contracts needed to hedge is_____
A) 0.0096
B) 0.96
C) 96
D) 9,600
3. An investor choosing to hedge in the futures market_____
A) Gives up the opportunity for gains
B) Reduces the opportunity for losses
C) Both (A) and (B)
D) Neither (A) nor (B)
4. A portfolio manager with $100 million in Treasury securities can reduce interest-rate risk by_____
A) Selling financial futures
B) Going long on financial futures
C) Buying financial futures
D) Doing nothing
5. The main reason why futures contracts are marked-to-market every trading day is because_____
A) It makes the accounting procedure simpler
B) It allows each party to recognize gains or losses
C) It reduces the chance of loss for the exchange
D) It is required by law
6. If a bank has sold a futures contract that perfectly hedges its portfolio of Treasury securities, and interest rates fall, then_____
A) The bank suffers a loss
B) The bank has a gain
C) The bank income is unchanged
D) None of the above
What accounting concept was used when a business
: What accounting concept was used when a business boasting pleasant industrial relations wants to record it as a concept worth $10,000?
|
Financial indicators of two different businesses
: Consider the following financial indicators of two different businesses:
|
Identify the accounting concept
: Identify the accounting concept that explains when goods valued at $3,000 are sent to a customer before the year ends
|
What aspect of the criminal process did you find
: For the final forum in this course, please answer the following: What aspect of the criminal process did you find most interesting in this course
|
Number of contracts needed to hedge
: If the hedge ratio is 0.96, the portfolio value is $10 million, the current price of a futures contract is $100,000, then the number of contracts needed to hedg
|
Describe the legal provision
: Describe the legal provision which allowed the Department of Justice DOJ to intervene in instances where allegations are made
|
Chairs for users with particular physical needs
: Ergonomics Inc. produces office chairs for users with particular physical needs. The company uses standard costing and the following are the standard costs:
|
Relationship between self-control and police misconduct
: discuss the findings in a study conducted by Donner, Fridell, and Jennings (2016) pertaining to the relationship between self-control and police misconduct
|
Account for the equipment at all
: The acquisition occurred Dec 31, 2000. Or would I not account for the equipment at all? And the last 5000 for the patent?
|