1. A graph, plotting a the relationship between a bond’s modified duration and its tenor for a (10) zero, (10) discount bond, (10) premium bond and (10) perpetuity

2. In (10 per) writing, and by (5 per) showing numerical analysis, explain what drives the shape of the four curves you plotted in part 1

You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B, have the following historical returns:

1. Calculate the average rate of return for each stock during the 5-year period. Do not round intermediate calculations. Round your answers to two decimal places.

   Stock A:   %

   Stock B:   %

2. Suppose you had held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Do not round intermediate calculations. Round your answers to two decimal places. Negative values, if any, should be indicated by a minus sign.

   Year	Portfolio
   2014	%
   2015	%
   2016	%
   2017	%
   2018	%
   Average return	%

3. Calculate the standard deviation of returns for each stock and for the portfolio. Do not round intermediate calculations. Round your answers to two decimal places.

   			Portfolio
   Std. Dev.	%	%	%

4. Suppose you are a risk-averse investor. Assuming Stocks A and B are your only choices, would you prefer to hold Stock A, Stock B, or the portfolio? Why?

   A risk-averse investor should choose -Select-Stock AStock BPortfolioItem 12 , since it offers -Select-lesshigherthe sameItem 13 expected return with -Select-lesshigherthe sameItem 14 risk.

What was the monetary policy and strategy used by the Federal Reserve in 2008, to overcome the financial crisis?

Discuss a management strategy used to retain or increase cash. Share an example of a time when you’ve used a similar strategy in your personal finances. How are the applications of these strategies similar or different for businesses and individuals?

Price the following option using the binomial method. Show all work

Stock price = 10

Strike price = 15

Volatility = 0.4

T = 1

r = 0.3

Type : Put

In what ways has the 2008 global financial crisis affected the world, U.S. and WI?

You have looked at the current financial statements for Reigle Homes, Co. The company has an EBIT of $2,930,000 this year. Depreciation, the increase in net working capital, and capital spending were $229,000, $94,000, and $435,000, respectively. You expect that over the next five years, EBIT will grow at 20 percent per year, depreciation and capital spending will grow at 25 per year, and NWC will grow at 15 per year. The company currently has $15,900,000 in debt and 465,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 3 percent indefinitely. The company’s WACC is 8.3 percent and the tax rate is 35 percent.

What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Share price            $

You just bought a car and plan on driving to campus everyday. The university no longer offers free parking because of
the increase of parking needs. You have two options to buy a parking permit. A monthly permit costs $30 (due at the
end of each month), which is a pay-as-you-go plan and you pay every month. However, the auxiliary services offers
a discounted annual permit which only costs $250 (upfront). You may assume that the academic year (12 months)
starts from Sep 1st, and ends on Aug 31st.
(1) If you plan to use the permit for all 12 months of the year, what is your internal rate of return (implicit interest
rate)?
(2) If you are not going to be on campus during the summer break (two months, from Jun 1st to Aug 31st), is
your internal rate of return going to change? If so, how much?
(3) You heard that a partially used annual permit can be sold easily on the black market for $15×number of
remaining months unused, because the parking permit is not associated with the car plate and can be used by any car
in the same class. How this is going to change your internal rate of return?

Suppose inflation rate is 6% for the past year. The inflation rate is expected to be 5% in the coming year and 4% per year thereafter. Assume that the real risk free rate r*, will remain at 2% over the next 10 years. The yield on a 5-year Treasury bond is 6.3% and the yield on a 10-year corporate bond is 8.4%. A 5-year corporate bond has the same maturity risk premium as the 5-year Treasury bond described. The 5-year corporate bond also has the same default risk premium and liquidity premium as the 10-year corporate bond described. Given that the maturity risk premium for the 10-year corporate bond is 0.3%, what is the yield on the 5-year corporate bond?

Ans : 8.3%

Assume that you borrow $36,000 for six years at an interest rate of 3.6% per year. If the loan has monthly payments, what is the amount of principal in the first payment? Question 5 options: A) $448.69 B) $556.69 C) $462.59 D) $477.86 E) $522.86

Required information

[The following information applies to the questions displayed below.]

Iguana, Inc., manufactures bamboo picture frames that sell for $30 each. Each frame requires 4 linear feet of bamboo, which costs $3.00 per foot. Each frame takes approximately 30 minutes to build, and the labor rate averages $11 per hour. Iguana has the following inventory policies:

• Ending finished goods inventory should be 40 percent of next month’s sales.
• Ending direct materials inventory should be 30 percent of next month’s production.

Expected unit sales (frames) for the upcoming months follow:

Variable manufacturing overhead is incurred at a rate of $0.30 per unit produced. Annual fixed manufacturing overhead is estimated to be $9,600 ($800 per month) for expected production of 4,000 units for the year. Selling and administrative expenses are estimated at $850 per month plus $0.60 per unit sold.

Iguana, Inc., had $12,800 cash on hand on April 1. Of its sales, 80 percent is in cash. Of the credit sales, 50 percent is collected during the month of the sale, and 50 percent is collected during the month following the sale.

Of direct materials purchases, 80 percent is paid for during the month purchased and 20 percent is paid in the following month. Direct materials purchases for March 1 totaled $3,500. All other operating costs are paid during the month incurred. Monthly fixed manufacturing overhead includes $200 in depreciation. During April, Iguana plans to pay $3,500 for a piece of equipment.

Required:
1. Compute the budgeted cash receipts for Iguana.
2. Compute the budgeted cash payments for Iguana.
3. Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a $12,000 minimum cash balance.

omplete this question by entering your answers in the tabs below.

• Required 1
• Required 2
• Required 3

Compute the budgeted cash receipts for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.)

• Required 1
• Required 2
• Required 3

Compute the budgeted cash payments for Iguana. (Do not round your intermediate calculations. Round final answers to 2 decimal places.)

Prepare the cash budget for Iguana. Assume the company can borrow in increments of $1,000 to maintain a $12,000 minimum cash balance. (Leave no cell blank enter "0" wherever required. Round your answers to 2 decimal places.)

Problem 1

(a) The spot rate is $1 = 2.238 BRL (Braxilian Real). If the one year risk-free rate in the U.S. is 2% and the one year risk-free rate in Brazil is 5%, calculate a fair price for a six month forward contract.

(b) There is a six-month futures contract available where each contract is for the purchase of 100,000 BRL using dollars. If the quote for the six month BRL/USD futures contract is .30315 calculate and show the details of how you would make arbitrage profits.

What are some ways that you can apply at least three of the advanced functions in excel that you learnedl in excel class. How would you use them at home, work or school? Please be specific. 250 word min

Suppose today S&P 500 index is 1800 and the continuously compounded annual dividend yield on the index is 2%.

Assume that it is possible to lend at 4 % and borrow at 7 %, annually continuously compounded.

a) Above what futures price is there arbitrage?

b) Below what futures price is there arbitrage?

Please show the cash flows, which make each type of arbitrage and explain what you would

do at each relevant date. Consider time to maturity of 6 months

.