When the change to socialized medicine is three years away

Assignment Help Finance Basics
Reference no: EM132354959

Suppose you are the owner of a large portfolio of long-term bonds in the health care industry and you believe that in the next three years, all healthcare will be socialized to the public sector. You anticipate that the profits of most healthcare companies will suffer immensely from this new path. If the market agrees with your assessment of the future, what would you anticipate would be the near term consequences for your bond portfolio? Why would this happen and why now, when the change to socialized medicine is three years away? How could you use options on these bonds to guard against lose?

Reference no: EM132354959

Questions Cloud

How do ideas of videos relate to your own religious identity : In our modern, digital world, the way we understand and talk about religious issues has changed. Though religion is still defined by belief systems.
Write a program to let a child practice arithmetic skills : Write a program to let a child practice arithmetic skills. The program should first ask for what kind of practice is wanted addition and subtraction.
What effect would you expect this action to have on andrews : Assuming Sales, Profits, and financial leverage remain the same, what effect would you expect this action to have on Andrews's ROE?
You could use text analysis in a real life situation : Describe a situation where you could use text analysis in a real life situation.
When the change to socialized medicine is three years away : Why would this happen and why now, when the change to socialized medicine is three years away? How could you use options on these bonds to guard against lose?
Movements of short-term rates in the future : Why is it so important for an investor to be able to predict which directions (higher or lower) that interest rate will move in coming years?
Information governance-necessity in business environment : The topic "Information Governance: A Necessity in Today's Business Environment."
Suppose the appropriate cost of capital : Based on the cashflows shown in the chart below, compute the NRV for project Huron. Suppose the appropriate cost of capital is 12%
What is the difference between the internal rate of return : What is the difference between the Internal Rate of Return, the Net Present Value, and Payback approaches to capital rationing?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd