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!
1. A CD matruing after 6 months with a par of one million dollars paying an interest rate of 1.5% annually, will have an Effective Annual Rate (EAR) of:
a. 1.629%
b. 1.622%
c. 1.601%
d. None of the above
2. A CD issued with 2.8% Annual interest rate paid Semi-annual for a maturity of six months was selling at issue for $999,550 (1,000,000 Par). The EAR is:
a. 2.94%
b. 2.962%
c. 2.839%
3. A bond has 2 year maturity with 5% coupon rate paid semiannually. If the current market interest rate is 3.0%, what is the duration of the bond (Par $1,000)? Closest answer.
a. 2.9 years
b. 1.5 years
c. 1.2 years
d. 1.9 years
4. In the previous question, if the interest rates increases by 25 b.p. then the change in the price of the bond is:
a. -4.6%
b. +4.6%
c. -2.50%
d. +2.50%
e. None of the above.
A bank may establish a multinational operation for the reason of regulatory advantage. Banks follow their multinational customers abroad to prevent the erosion of their clientele to foreign banks seeking to service the multinational's foreign subsidi..
What are the factors that would influence the Federal Reserve in adjusting the discount rate? How does the discount rate affect the decisions of banks in setting their specific interest rates? How does monetary policy aim to avoid inflation?
Why is the time value of money important for an individual to understand in regard to their private life? What can an individual do with this information?
Compare retirement savings plans (Learning Objective 3) Assume that you want to retire early at age 54. You plan to save using one of the following two strategies: (1) save $4,200 a year in an IRA beginning when you are 24 and ending when you are 54 ..
What sources of capital should be included when you estimate XYZ's WACC? and Should the component costs be estimated on a before or after-tax basis? Why?
An exchange traded fund that invests in the stocks of large corporations is an example of
You work as an accountant for a small land development company that desperately needs additional financing to continue in business. The president of your company is meeting with the manager of a local bank at the end of the month to try to obtain thi..
a stock price is currently 42. its stock price will be either 45 or 38 one year from now. the risk-free rate is 5. a
Individuals who own homes may take a tax deduction for interest paid. Many individuals believe that this tax law discriminates against individuals who rent. Do you think this deduction is discriminatory? Explain and share your thoughts.
According to the Affordable Care Act and Reconciliation Act, a) What are some of its implications for financial managers. b) Who will bear its costs?
The Florida lottery Agrees to pay the winner $254,000 at the end of the year for the next 20 years. What is the future value of this prize if each payment is put in an account earning 0.08?
Rapid integration is usually important for all of the following reasons, except for: Minimizes employee turnover. Improves the morale and productivity of current employees of both the acquiring and acquired firms
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