Suppose that the 2-year and 2.5-year zero rates with continuous compounding are 2.6% and 3.0%, respectively. (a) What is the forward rate for the six-month period beginning in 2 years (2R2.5) (from Year 2 to Year 2.5) with continuous compounding? (b) What is the forward rate for the six-month period beginning in 2 years (2R2.5) (from Year 2 to Year 2.5) with semiannual compounding? (c) What is the (Year 0) value of an FRA that promises to pay the lender 4.5% (compounded semiannually) on a principal of $2 million for the six-month period starting in 2 years (from Year 2 to Year 2.5)?

Please give me the process, thank you!

Consider a one-year call option and a one-year put option on the same stock, both with an exercise price $100. If the risk-free rate is 5%, the current stock price is $103, and the put option sells for $7.50.

1. According to the put-call parity, what should be the price of the call option?

2. To your amazement, the call option is actually traded at $15. If the call option fairly priced, overvalued, or undervalued? What would you do to exploit this mispricing? Formulate your strategy and work out the payoff worksheet. What would be your arbitrage profit when the future stock price is equal to $0, $100, and $200?

Colsen Communications is trying to estimate the first-year net operating cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project:

The company has a 40% tax rate, and its WACC is 11%.

Write out your answers completely. For example, 13 million should be entered as 13,000,000.

1. What is the project's operating cash flow for the first year (t = 1)? Round your answer to the nearest dollar.
   $  
2. 
   
3. If this project would cannibalize other projects by $2 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest dollar.
   The firm's OCF would now be $  
4. 
   
5. Ignore Part b. If the tax rate dropped to 30%, how would that change your answer to part a? Round your answer to the nearest dollar.
   The firm's operating cash flow would -Select-increasedecreaseItem 3 by $  

The following transactions were completed by Hobson Inc., whose fiscal year is the calendar year: 2010 July 1. Issued $18,000,000 of five-year, 10% callable bonds dated July 1, 2010, at an effective rate of 12%, receiving cash of $16,675,184. Interest is payable semiannually on December 31 and June 30. Oct. 1. Borrowed $400,000 as a 10-year, 7% installment note from Marble Bank. The note requires annual payments of $56,951, with the first payment occurring on September 30, 2011. Dec. 31. Accrued $7,000 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31. Paid the semiannual interest on the bonds. 31. Recorded bond discount amortization of $132,482, which was determined using the straight-line method. 31. Closed the interest expense account. 2011 June 30. Paid the semiannual interest on the bonds. Sept. 30. Paid the annual payment on the note, which consisted of interest of $28,000 and principal of $28,951. Dec. 31. Accrued $6,493 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31. Paid the semiannual interest on the bonds. 31. Recorded bond discount amortization of $264,964, which was determined using the straight-line method. 31. Closed the interest expense account. 2012 June 30. Recorded the redemption of the bonds, which were called at 97. The balance in the bond discount account is $794,888 after payment of interest and amortization of discount have been recorded. (Record the redemption only.) Sept. 30. Paid the second annual payment on the note, which consisted of interest of $25,973 and principal of $30,978. Instructions 1. Journalize the entries to record the foregoing transactions. 2. Indicate the amount of the interest expense in (a) 2010 and (b) 2011. 3. Determine the carrying amount of the bonds as of December 31, 2011.

A student at a four-year college claims that average enrollment at four-year colleges is higher than at two-year colleges in the United States. Two surveys are conducted. Of the 35 two-year colleges surveyed, the average enrollment was 5068 with a standard deviation of 4777. Of the 35 four-year colleges surveyed, the average enrollment was 5466 with a standard deviation of 8191.† Conduct a hypothesis test at the 5% level. NOTE: If you are using a Student's t-distribution for the problem, including for paired data, you may assume that the underlying population is normally distributed. (In general, you must first prove that assumption, though.)

A) State the distribution to use for the test. (Enter your answer in the form zor t_dfwhere dfis the degrees of freedom. Round your answer to two decimal places.)

B) Sketch a picture of this situation. Label and scale the horizontal axis and shade the region(s) corresponding to the p-value. (Upload your file below.)

You are making a decision to purchase either a 6-year corporate bond or a 6-year municipal bond. The corporate bond is a 11% annual coupon bond with a par value of $1,000. It is currently yielding 12%. The municipal bond has an 9.5% annual coupon and a par value of $1,000. It is currently yielding 7.5%. Which of the two bonds would be more beneficial to you? Assume that your marginal tax rate is 37%.

(1) Use the information above to compute the number of days in the cash conversion cycle for each year.
(2) Did the company manage cash more effectively in the current year?

Use the information above to compute the number of days in the cash conversion cycle for each year. (Use 365 days in a year. Round calculations to the nearest whole day.)

You have taken out a $250,000, one-year ARM. The teaser rate in the first year is 3.75% (annual). The index interest rate after the first year is 2.75% and the margin is 2.50%. (Note: The term on this ARM is 30 years). There is also a periodic (annual) rate cap of 2.00%. Given this information, determine the monthly mortgage payment you would be scheduled to make in month 13 of the mortgage loan's term.

Year # AIDS cases diagnosed # AIDS deaths

Graph "year" vs. "# AIDS deaths." Do not include pre-1981. Label both axes with words. Scale both axes. Calculate the following. (Round your answers to the nearest whole number. Round the correlation coefficient r to four decimal places.)

a =

b=

r=

n=

30 year Female with two year history of weight gain, hirsutism, easy bruising and oligomenorrhea. The doctor notes HT (BP 180/110) and muscle weakness. The laboratory data showed the following results: 9 am cortisol 600 nmol/L (200-700), Low dose dexamethasone suppression test - Basal 630 nmol/L- 48h 470 nmol/L (normal <50 nmol/L), Urine free cortisol: 1250 nmol/L (<250), Plasma ACTH: undetectable. What do you think the cause of her symptoms would be?