Q1 let the returns also yields given us t-bill 8 5-year

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Q. 1) Let the returns also yields given: U.S. T-bill = 8%, 5-year U.S. T-note = 7%, IBM common stock = 15%, IBM AAA Corporate Bond = 12% also 10-year U.S. T-bond = 6%. Based on this information, find the shape of yield curve is?

2) In trade with government of the oil producing nation, a manufacturer will deliver 14 Caterpillar D9 tractors, with the value of= $350,000 each tractor, also get 45,000 barrels of oil, valued at $115 each barrel. Find out the net benefit of this trade to manufacturer?

3) Callaghan Motors' bonds have ten years remaining to maturity. Interest is paid annually, they have= $1,000 par value, coupon interest rate is= 8%, also yield to maturity is 9%. Find out the bond's present market price?

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