Interest rates on 4-year Treasury securities are currently 5.6%, while 6-year Treasury securities yield 7.15%. If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Calculate the yield using a geometric average. Do not round intermediate calculations. Round your answer to two decimal places.
In: Finance
You have the following information about the current one-year spot rate and the expected one-year T-note rates during the next three years. The one year spot rate is 1.66%. The expected rate in year 2 is 2.45%, the expected rate in year 3 is 2.86%, and the expected rate in year 4 is 3.64%. What are current rates for the 1, 2, 3, and 4 year maturities for these treasury securities
In: Finance
Assume i=8% year. How much money do I have to deposit today(year 0) in an account that will generate $25000 from year 12 to infinity.
In: Economics
Quantitative Problem 2: Hadley Inc. forecasts the year-end free cash flows (in millions) shown below.
| Year | 1 | 2 | 3 | 4 | 5 |
| FCF | -$22.31 | $38.4 | $43.5 | $51.4 | $56.5 |
The weighted average cost of capital is 10%, and the FCFs are
expected to continue growing at a 4% rate after Year 5. The firm
has $25 million of market-value debt, but it has no preferred stock
or any other outstanding claims. There are 20 million shares
outstanding. Also, the firm has zero non-operating assets. What is
the value of the stock price today (Year 0)? Round your answer to
the nearest cent. Do not round intermediate calculations.
$ per share
In: Finance
Burns Corporation's net income last year was $97,400. Changes in the company's balance sheet accounts for the year appear below:
| Increases (Decreases) | |||
| Asset and Contra-Asset Accounts: | |||
| Cash and cash equivalents | $ | 19,300 | |
| Accounts receivable | $ | 13,500 | |
| Inventory | $ | (16,800 | ) |
| Prepaid expenses | $ | 4,400 | |
| Long-term investments | $ | 10,500 | |
| Property, plant, and equipment | $ | 75,600 | |
| Accumulated depreciation | $ | 32,200 | |
| Liability and Equity Accounts: | |||
| Accounts payable | $ | (19,600 | ) |
| Accrued liabilities | $ | 16,800 | |
| Income taxes payable | $ | 4,300 | |
| Bonds payable | $ | (61,200 | ) |
| Common stock | $ | 40,800 | |
| Retained earnings | $ | 93,200 | |
The company did not dispose of any property, plant, and equipment, sell any long-term investments, issue any bonds payable, or repurchase any of its own common stock during the year. The company declared and paid a cash dividend of $4,200.
Required:
a. Prepare the operating activities section of the company's statement of cash flows for the year. (Use the indirect method.)
b. Prepare the investing activities section of the company's statement of cash flows for the year.
c. Prepare the financing activities section of the company's statement of cash flows for the year.
| Operating activities: | ||
| Adjustments: | ||
| Investing Activities: | |
| Financing Activities: | |
In: Accounting
Suppose a life insurance company sells a $200,000 one-year term life insurance policy to a
23-year-old female for $190. The probability that the female survives the year is
0.999594. Compute and interpret the expected value of this policy to the insurance company.
In: Statistics and Probability
Suppose a life insurance company sells a
$160,000
one-year term life insurance policy to a
25-year-old
female for
$280.
The probability that the female survives the year is
0.9996420
Compute and interpret the expected value of this policy to the insurance company.
The expected value is
$nothing.
(Round to two decimal places as needed.)
In: Statistics and Probability
Suppose a life insurance company sells a $190,000 one-year term life insurance policy to a 24-year-old female for $200. The probability that the female survives the year is .999461. Compute and interpret the expected value of this policy to the insurance company.
In: Statistics and Probability
Life Insurance:
A life insurance company sells a $250,000 1-year term life policy to a 20-year-old male for $350. According to the National Vital Statistics Report, the probability that the male survives the year is 0.998734.
Please answer all questions and do not hand write your answers. Show your work or please leave the question for someone who can. Thank you
a)Compute the expected value.
b)Interpret the expected value of this policy to the insurance company.
In: Statistics and Probability
Mary-Lou is a 75-year-old widow, who lost her husband to cancer over a year ago. Her family and friends have noticed that she has been very teary, has low self-esteem and has lost interest in the things she used to love such as going to bingo with her friends and gardening. Her family initially put this down to the loss of her husband and thought it would pass with time. However, they are now getting really concerned as they have noticed that her mood is not improving still. When asked by her daughter if she is sleeping well, she says she has been drinking wine every night to help her go to sleep. It makes her feel happy and relaxed. What started as one glass a night has now increased to two or three glasses a night, and she has also started drinking during the day. Her daughter has noticed that her mum’s face always appears flushed and that she has had quite a few colds lately. Mary-Lou is also losing her balance and experiencing mood swings. Her daughter is worried that she is relying too heavily on alcohol and fears that she is starting to get short-term memory loss from the alcohol consumption. She has been forgetting things such as where she put her keys, whether she turned on the washing machine, why she opened the fridge and forgetting the topic of conversation when talking with her daughter on the phone. Mary-Lou has also been getting disorientated and getting lost when she goes out on her daily walks. A neighbor rang her daughter one day to tell her that she found Mary-Lou wandering around aimlessly, and when questioned what she was doing Mary-Lou snapped and said she was trying to get home. Her daughter decided it was time to take Mary-Lou to the local GP to work out what was going on with her. After listening to the signs and symptoms Mary-Lou was experiencing, the GP diagnosed her with depression and prescribed 50 mg of Fluoxetine/Prozac daily. Based on the results of clinical and radiological assessments, the GP determined that she had early onset Alzheimer’s disease. He prescribed a cholinesterase inhibitor and gave them information on support groups and tips on what to do from here on in. He also prescribed 10 mg of Diazepam daily to help with the withdrawals from alcohol abuse.
Question 1 Based on the scenario above, you should have identified three diseases/conditions we have covered in BIOL122.
• Name two of the diseases/conditions you identified, and
• List two characteristic signs or symptoms (per disease) that you noted in Mary-Lou’s history
• Finally, explain the pathophysiology of both diseases/conditions you named (i.e., explain the changes that cause the disease and relate the typical signs and symptoms of the disease).
In: Biology