When would you use forwards, futures and options, in respect to a depreciating currency

Assume a bond has a 1000 par value and a 5 percent coupon rate, two year remaining to maturity, and a 10 percent yield to maturity. What is the duration of this bond?

A. 2

B. 1.97

C. 1.95

D. 1.83

Answer is C. I need to know how, please show work!

Solve only a) part

Please note - Different question.J&J Cattle has purchased a quarter section of land for $160,000. They make a down payment of $20,000, and the remainder of the purchase price ($140,000) is financed at 11% percent compounded quarterly with quarterly payments over 2 years. Develop an Excel® table to illustrate the payment amounts and schedule for the loan

a) For each of the five payment schedules, determine the present worth of the loan payments made by the borrower. Use an Excel® spreadsheet and program it such that you can enter different interest rates for the borrower's TVOM. Use TVOM rates of 8 percent, 11 percent, and 14 percent compounded quarterly. (Show your analysis and justification by drawing a graph)

What is a merger? How does a merger differ from other forms of acquisition? From the standpoint of stockholder’s wealth, which one of the reasons may be a justifiable reason for merger or acquisition? Explain.

Exercise 6-31 (Algorithmic) (LO. 3)

Stanford owns and operates two dry cleaning businesses. He travels to Boston to discuss acquiring a restaurant. Later in the month, he travels to New York to discuss acquiring a bakery. Stanford does not acquire the restaurant but does purchase the bakery on November 1, 2019.

Stanford incurred the following expenses:

If required, round any division to two decimal places and use in subsequent computation. Round your final answer to the nearest dollar.

What is the maximum amount Stanford can deduct in 2019 for investigation expenses?

Assume zero-coupon yields on default-free bonds are 4.00% (1 year), 4.30% (2 years), 4.50% (3 years), 4.70% (4 years), 4.80% (5 years).

C) Consider a four-year, default-free bond with annual coupon payments and a face value of $1000 that is issued at par. What is the coupon rate of this bond?

The Centurion Corp. is putting together a financial plan for the company covering the next three years, and it needs to forecast its interest expense and the related tax savings. The firm’s most significant liability is a fully amortized mortgage loan on its real estate. The loan was made exactly ten and one-half years ago for $3.2M at 11% compounded monthly for a term of 30 years. Use the AMORTIZ program to predict the interest expense associated with the real estate mortgage over the next three years. (Hint: Run AMORTIZ from the loan’s beginning and add up the months in each of the next three years.)

Lara is a security analyst with Texas City brokerage firm. Lara has been following one of the hottest issues on Wall Street, M&I Medical supplies, a company that has turned outstanding performance and showed excellent potential growth. It has 5 million shares outstanding and pays an annual dividend of $0.05 per share. Lara showed her interest in investing in M&I. Assume the company sales for the past five years have been as follows:

Year Sales ($ million)

2012 - 10.0
2013 - 12.5
2014 - 16.2
2015 - 22.0
2016 - 28.5

Lara relates to the prospects of the company, not its past. As a result, she generates the following estimate of future performance:

Expected Net Profit Margin =12%
Estimated annual dividend per share = 5c
Number of share s outstanding = No change
P/E ratio at the end of 2017 = 35
P/E ratio at the end of 2018 = 50

Questions:
4. Determine the expected future price of the stock at the od 2017 and 2018.
5. Because of several intrinsic and market factors, Lara feels that 25% is a viable figure to use for a desired rate of return.
a. Using a 25% rate of return and forecasted figures, compute the stock’s justified price.
b. If M&I is currently trading at $32.50 per share, should Lara consider the stock a worthy investment? Explain.

Please respond to the following:

• Describe the costs and benefits of each of the major forms of business?

• Describe the goals of a financial manager.

Examine ethical behavior within firms in relation to financial management. Provide two (2) examples of companies that have been guilty of ethics-based action related to financial management and how the companies were effected.

A certain company;s cash flows are expected to grow at a rate of 20% for the next seven years before tapering off to a constant growth rate of 5% forever. The current year's cash flow is $35,000. If the firm's cost of capital is 25%, what should its fair market value be? Please show work

3. What was the Fed’s announced monetary policy decision at the June 18-19, 2019 FOMC meeting? What rationale did the fed give for its decision? What hints did they give toward their outlook on the future? How did the financial markets receive their decision? You should be able to find the answer to all of these questions in one or two news reports following the meeting or in the press release issued by the fed.

Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.

1. $500 per year for 16 years at 14%.

2. $250 per year for 8 years at 7%.

3. $1,000 per year for 16 years at 0%.

4. Rework previous parts assuming they are annuities due.

   Present value of $500 per year for 16 years at 14%:   

   Present value of $250 per year for 8 years at 7%:

   Present value of $1,000 per year for 16 years at 0%:

Return on a risk-free investment is 3 percent and the expected market return is 6 percent. Annualized stdev of the return on the market is 15 percent.

Project 1: IRR = 7 percent. SD(ri) = .45 Corr (Ri, Rm) = .25

Project 2: IRR = 11 percent. SD(ri) = .30 Corr (Ri, Rm) = .90

Please find and graph the security market line

Please find the index of systematic risk of each project and plot the IRR combinations on a graph and rank the projects according to a measure of their total risk and then their index of systematic risk.

Kingston Kiteboards Incorporated (KKI) has been experiencing very strong demand for its products as kite-boarding continues to take away market share from windsurfing. The company is considering a new facility to manufacture an improved line of kites and another facility to produce a new line of boards. The company estimates that the new kite facility will cost $1,250,000 to construct in Year 0 with a salvage value of $150,000 in Year 12. The board manufacturing facility will cost $1,500,000 in Year 0 with a salvage value of $200,000 in Year 12. Combined annual revenue for the new kites and boards is expected to be $800,000 with annual combined operating costs of $300,000 each year. Management has identified a piece of land where both facilities could be built that could be purchased for $500,000 in Year 0. The management team estimates that the land may be sold for the same value of $500,000 at the end of Year 12. The company uses a discount rate of 10% and a tax rate of only 15%. Assume that the CCA rate of 20% can be applied to the land and the manufacturing facilities.

Use the present value tax shield approach to determine the net present value (NPV) of combined project involving both new manufacturing facilities. Should KKI proceed with the investment using these assumptions?