A financial institution trades swaps where 12 month LIBOR is exchanged for a fixed rate of interest. Payments are made once a year. The one-year swap rate (i.e., the rate that would be exchanged for 12 month LIBOR in a new one-year swap) is 6 percent. Similarly the two-year swap rate is 6.5 percent.

1. Use this swap data to calculate the one and two year LIBOR zero rates, expressing the rates with continuous compounding.
2. What is the value of an existing swap with a notional principal of $10 million that has two years to go and is such that financial institution pays 7 percent and receives 12 month LIBOR?   Payments are made once a year.
3. What is the value of a forward rate agreement where a rate of 8 percent will be received on a principal of $1 million for the period between one year and two years?

            Note: All rates given in this question are expressed with annual compounding. (Steps plz)

SummerFun, Inc., produces a variety of recreation and leisure products. The production manager has developed an aggregate forecast:

Use the following information to develop aggregate plans.

b. Develop aggregate plan using the same strategy used in part a except that backlogs are allowed here. There should be no backlog remaining at the end of September. Hint: Use a maximum backlog of 5 in any given month. You will need to develop a set of rules regarding which capacity option (regular, overtime, subcontracting) is always preferable, and regarding the timing of these options (i.e., is it cost-effective to build ahead (and thus carry inventory) or to incur a backlog?). (

13. (18 pts total) The U.S. Department of Agriculture (USDA) uses sample surveys to produce important economic estimates. One pilot study estimated wheat prices in July and in August using independent samples of wheat producers in the two months. Here are the summary statistics, in dollars per bushel. July: n1 = 35, x1 = $7:62, s1 = $0:28 and August: n2 = 25, x2 = $7:44, s2 = $0:35. Can we conclude that the national average price in July 1 and the national average price in August 2 are not the same? Answer this question in two ways (and use the correct df). (a) (6 pts) Calculate a 95% confidence interval for estimating 1 ? 2. (b) (6 pts) Calculate the two-sample t statistic and use Table D to compute a range of possibilities for the P-value of the test: H0 : 1 = 2 versus Ha : 1 6= 2. (c) (4 pts) What do your answers to parts (a) and (b) say about whether 1 and 2 are the same, at the = 5% level of significance? (d) (2 pts) Based on your answer to part (c), to what type of error are you now subject to (Type I or Type II)?

Assignment Purpose

The purpose of this lab is to write a well-commented java program that demonstrates the use of loops, and generation of random integers.

Instructions

1. You are taking some time off from your paint business and currently are on vacation in Bahamas.
2. You decide to write a Java program that generates 10 random numbers between 1 and 20 (all integers).
3. You cannot use arrays (even if you know what they are) to store these numbers.
4. It then picks up the largest number among them and prints a multiplication table until that number.
5. While your program is generating random numbers, it keeps tracks of number of 6’s generated.
   1. If more than two 6’s are generated, your program should print “HURRAY!! DOUBLE SIXES GENERATED”.
   2. If two 6’s are not generated, it should print “SORRY!! DOUBLE SIXES NOT ENCOUNTERED”.

Sample Output 1

/*******************Bahamas Vacation Report BEGIN***************\

Generating random numbers……

4 6 3 11 9 2 6 20 11 3

“HURRAY!! DOUBLE SIXES GENERATED”

Largest random number is:           11

The multiplication table is as follows:

1    2          3          4          5          6      7          8          9          10

2    4          6          8          10        12      14        16        18        20

3    6          9          12        15        18      21        24        27        30

.

.

11 22        33        44        55        66      77        88        99        110

/*******************Bahamas Vacation Report END ***************\

Sample Output 2

/*******************Bahamas Vacation Report BEGIN***************\

Generating random numbers……

4 6 3 11 9 2 2 20 11 3

“SORRY!! DOUBLE SIXES NOT ENCOUNTERED”

Largest random number is:           11

The multiplication table is as follows:

1    2          3          4          5          6      7          8          9          10

2    4          6          8          10        12      14        16        18        20

3    6          9          12        15        18      21        24        27        30

.

.

11 22        33        44        55        66      77        88        99        110

/*******************Bahamas Vacation Report END ***************\

Write a well-commented java program that demonstrates the use of loops, and generation of random integers (Code will be written in Dr. Java)

1. You are taking some time off from your paint business and currently are on vacation in Bahamas.
2. You decide to write a Java program that generates 10 random numbers between 1 and 20 (all integers).
3. You cannot use arrays (even if you know what they are) to store these numbers.
4. It then picks up the largest number among them and prints a multiplication table until that number.
5. While your program is generating random numbers, it keeps track of the number of 6’s generated.
   1. If more than two 6’s are generated, your program should print “HURRAY!! DOUBLE SIXES GENERATED”.
   2. If two 6’s are not generated, it should print “SORRY!! DOUBLE SIXES NOT ENCOUNTERED”.

Sample Output 1

/*******************Bahamas Vacation Report BEGIN***************\

Generating random numbers……

4 6 3 11 9 2 6 20 11 3

“HURRAY!! DOUBLE SIXES GENERATED”

Largest random number is:           11

The multiplication table is as follows:

1    2          3          4          5          6      7          8          9          10

2    4          6          8          10        12      14        16        18        20

3    6          9          12        15        18      21        24        27        30

.

.

11 22        33        44        55        66      77        88        99        110

/*******************Bahamas Vacation Report END ***************\

Sample Output 2

/*******************Bahamas Vacation Report BEGIN***************\

Generating random numbers……

4 6 3 11 9 2 2 20 11 3

“SORRY!! DOUBLE SIXES NOT ENCOUNTERED”

Largest random number is:           11

The multiplication table is as follows:

1    2          3          4          5          6      7          8          9          10

2    4          6          8          10        12      14        16        18        20

3    6          9          12        15        18      21        24        27        30

.

.

11 22        33        44        55        66      77        88        99        110

/*******************Bahamas Vacation Report END ***************\

Suppose you are deciding whether to buy an electric or a natural gas hot water heater. Assume you live in California.

Note: 1 therm of natural gas equals ~30 kWh of electricity

Natural Gas Price in CA = $13.35 per Thousand Cubic Feet

Electric price in CA = .16 cents per kilowatt-hour (kWh)

Gas Water Heater Uses 258 therms per year

Water heater numbers are based on 40-gallon models with a 0.63 EF rating using 40,000 Btu/hr and based on the U.S. Department of Energy’s (DOE) national average of 64 gallons of hot water use daily.

Electric water heater Uses 4,881.25 kWh per year

An average water heater runs three hours daily. A 50-gallon, 5,500-watt water heater with a .90 EF and an electricity rate of $.16 per kilowatt hour.

For each sub question, show your assumptions and calculations.

1a) Which would you pick to minimize your operating costs?

1b) If the electric water heater cost $1250 and the natural gas water heater cost $1600, how much would this change your calculation for 1a?

1c) Which would you pick to minimize your total energy footprint, and why?

1d) Which would you pick to minimize your environmental footprint, and why?

A two-sample z-test for two population proportions is to be performed using the approach. The null hypothesis is and the alternative is Use the given sample data to find the P-value for the hypothesis test. Give an interpretation of the p-value. A poll reported that 3 out of 50 college seniors surveyed did not have jobs, while 7 out of 50 college juniors did not have jobs during the academic year.

Make a LandTract class with the following fields:

• length - an int containing the tract's length
• width - an int containing the tract's width

The class should also have the following methods:

• area - returns an int representing the tract's area
• equals - takes another LandTract object as a parameter and returns a boolean saying whether or not the two tracts have the same dimensions (This applies regardless of whether the dimensions match up. i.e., if the length of the first is the same as the width of the other and vice versa, that counts as having equal dimensions.)
• toString - returns a String with details about the LandTract object in the format:
LandTract object with length 30 and width 40
(If, for example, the LandTract object had a length of 30 and a width of 40.)

Write a separate program that asks the user to enter the dimensions for the two tracts of land (in the order length of the first, width of the first, length of the second, width of the second). The program should print the output of two tracts' toString methods followed by a sentence stating whether or not the tracts have equal dimensions. (If the tracts have the same dimensions, print, "The two tracts have the same size." Otherwise, print, "The two tracts do not have the same size.") Print all three statements on separate lines.

Sample Run
java LandTract

Enter·length·of·first·land·tract:10↵
Enter·width·of·first·land·tract:55↵
Enter·length·of·second·land·tract:36↵
Enter·width·of·second·land·tract:75↵
LandTract·with·length·10,·width·55,·and·area·550↵
LandTract·with·length·36,·width·75,·and·area·2700↵
The·two·tracts·do·not·have·the·same·size.↵

2. What is the price you would pay to buy such a product if your required rate of return is 10% per annum?
3. What is the equivalent equal annual cash flow amount if the amount is paid for 7 years (1st December 2021 to 1st December 2027) in seven equal installments instead of six growing installments?

6.5 The time taken by machines A, B, and C to execute a given task is

A 16m, 9s

B 14m, 12s

C 12m, 47s

What is the performance of each of these machines relative to machine A?

6.6 Why is clock rate a poor metric of computer performance? What are the relative strengths and weaknesses of clock speed as a performance metric?

6.7 What are the relative strengths and weaknesses of the MIPS as a metric of computer performance?