Difference between spot rate-short rate and forward rate

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Reference no: EM131893325

1. Chisa’s Popcorn has 370,000 shares of stock outstanding with a current market value of $37 a share. You own 75,000 of those shares. Next month, the election will be held to select four new members to the board of directors. The firm uses a cumulative voting system. How much additional money do you need to spend to guarantee that you will be elected to the board assuming that everyone else votes for one of the other candidates?

A. $0

B. $28,512

C. $34,047

D. $2,738,000

E. $2,738,037

2. What is the difference between a spot rate, a short rate, and a forward rate? Also, what is the difference between an on the run yield curve and a pure yield curve?

Reference no: EM131893325

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