Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Suppose the returns on long-term corporate bonds and T-bills are normally distributed. Assume for a certain time period, long-term corporate bonds had an average return of 5.3% and a standard deviation of 8.1%. For the same period, T-bills had an average return of 3.8% and a standard deviation of 2.6%. Use the NORMDIST function in Excel® to answer the following questions: Required: (a) What is the probability that in any given year, the return on long-term corporate bonds will be greater than 10 percent? Less than 0 percent? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Probability of return greater than 10 percent % Probability of return less than 0 percent % (b) What is the probability that in any given year, the return on T-bills will be greater than 10 percent? Less than 0 percent? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Probability of T-bill return greater than 10 percent % Probability of T-bill return less than 0 percent % (c) In one year, the return on long-term corporate bonds was −4 percent. How likely is it that such a low return will recur at some point in the future? T-bills had a return of 10.72 percent in this same year. How likely is it that such a high return on T-bills will recur at some point in the future? (Do not round intermediate calculations. Enter your answers as a percentage rounded to 2 decimal places (e.g., 32.16).) Probability of return on long-term corporate bonds less than –4.00 percent % Probability of T-bill return greater than 10.72 percent
Although a third party reserve report can be costly, it can benefit both buyer and seller. Please list an example of how each would benefit from the report, without hindering the sale.
A company is expected to pay their first annual dividend three years from now. That payment will be $0.50 a share. Starting in year four, the company will increase the dividend by 4% per year. The required return is 12%. What is the estimated value o..
Suppose Powers Ltd. just issued a dividend of $2.52 per share on its common stock. The company paid dividends of $2.02, $2.09, $2.26, and $2.36 per share in the last four years. what is your best estimate of the company’s cost of equity capital using..
Suppose you inherited $275,000 adn invested it at 8.25% quarterly. How much could you withdraw at the end of 5 months? Does this question deal with the PV or FV of a LumpSum, Ordinary Annuity or Annuity Due? What is the formula you would use if you d..
Suppose a government lives for two periods. It makes an exogenous amount of government expenditures each period. These have nominal value P1G1 = 100 and P2G2 = 50. It also charges households a lump sum tax, Tt each period. Write down the government’s..
CFS is considering applying for a stimulus funding grant that would allow it to install solar panels on each of its four fire houses. The roofs on each of the firehouses are big enough to accommodate 30,000 square feet of panels. Panels cost $8 per s..
A firm has a debt of $7,000, equity of $12,000, a cost of debt of 7% , a cost of equity 14% , and a tax rate of 30%. What is the firms weighted average cost of capital?
You are a swap dealer, and you have just paid the fixed rate (and received 3 month LIBOR) on a 5-year interest rate swap. Both the Eurodollar futures market and the Treasury market are very liquid today. Qualitatively (no numbers) what transaction(s)..
Then, compare the most appropriate hedge to an unhedged strategy, and decide whether Black Rod should hedge its payables position.
The management of Casilla Manufacturing Company (CMC) has decided to invest in a new robotic system to increase the productivity of the company. The company has enough money to invest in one system, and has narrowed the choice down to Asea System and..
Statements about the flexibility, cost and riskiness of short-term versus long term debt depend to a large extent on the type of short-term financing that is actually used. Three major types of short-term financing--accruals, accounts payable and ban..
Determine the annual repayment schedule for the first two years (ie, interest, principal repayment, and balance owed) for each of the following: (Assume one payment annually) Compare the payments required by each mortgage.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd