An investor purchased the following five bonds. Each bond had a par value of $1,000 and a 11% yield to maturity on the purchase day. Immediately after the investor purchased them, interest rates fell, and each then had a new YTM of 5%. What is the percentage change in price for each bond after the decline in interest rates? Fill in the following table. Enter all amounts as positive numbers. Do not round intermediate calculations. Round your monetary answers to the nearest cent and percentage answers to two decimal places.

Find the best regression equation that gives selling price as a function of living area, taxes, acreage and rooms.

Your client wants to purchase stock on margin. You assess the client and the stock and decide that a 40% margin is appropriate. Commissions are 1% and the rate of interest on margin loans is 8%. The current price of the stock is $100/share and your client wants to purchase 1,000 shares.

a. How much cash must your client put into the acc ount to support the initial purchase?

b. Below what price would the price of the stock have to drop for there tois a margin call witha maintenance margin of 30%?

c. What is the profit or loss on this transaction if the client sells the stock 6 months later for $80 a share?

d. What is the profit or loss on this transaction if the client sells the stock 6 months later for $120 a share?

Mario consumes eggplants and tomatoes in the ratio of 1 bushel of eggplants per 1 bushel of tomatoes. His garden yields 30 bushels of eggplants and 10 bushels of tomatoes. He initially faced prices of $25 per bushel for each vegetable, but the price of eggplants rose to $100 per bushel, while the price of tomatoes stayed unchanged. After the price change, he would

a. increase his eggplant consumption by 6 bushels.

b. decrease his eggplant consumption by at least 6 bushels.

c. increase his consumption of eggplants by 8 bushels.

d. decrease his consumption of eggplants by 8 bushels. e. decrease his tomato consumption by at least 1 bushel.

Please show your work

1. A monopolist faces a market demand curve given by Q^D= 100 – P/3 and has a cost function described by C = 30Q +1.5Q². Solve for the monopolist’s profit maximizing output and price.
2. With reference to question 4 above, suppose the demand facing the monopolist increases to Q^D= 120 – P/2. Solve for the new profit maximizing values of price and quantity. Describe how the two answers differ and explain those differences in terms of the demand change.
3. The market for coats is perfectly competitive with market supply given by Q^S= 2500 + 40P and market demand given by Q^D given by Q^D= 7500 – 10P. Solve for the equilibrium values of price and quantity. Calculate the values of elasticity of demand and elasticity of supply at the equilibrium.

Question 4

Suppose 100,000 kilograms of gold can be obtained from a gold mine during its first year in operation. However, its subsequent yield is expected to decrease by 10% over the previous year’s yield. The gold mine has a proven reserve of 1,000,000 kilograms.

1. a) Suppose that the price of gold is expected to be $60 per gram for the next several years. What would be the present worth of the revenue earned at an interest rate of 12% per annum compounded annually over the next seven years?
2. b) Suppose that the price of gold is expected to start at $60 per gram during the first year, but to increase at the rate of 5% over the previous year’s price. What would be the present worth of the revenue earned at an interest rate of 12% per annum compounded annually over the next seven years?
3. c) Consider part b again, find the net worth of the revenues to be earned in the next 4 years at the end of year 3.

4) You are holding a bond in your investment account, and when you check the account today you find the value of the bond has increased since you first bought it. List all the possible reasons why the price of the bond went up, and explain why these factors would have resulted in a price increase.

5) A company issues two different types of bonds: callable bonds and puttable bonds. The bonds have the same maturity date. If the company went on to perform really well in the future, so that they were viewed by the market as significantly less risky than when these bonds were first issued, which of the bonds would experience the greater change in price? Explain why.

6) A company recently paid out a $4 per share dividend on their stock. Dividends are projected to grow at a constant rate of 5% into the future, and the required return on investment is 8%. If we buy the stock today and hold it for one year, what is our holding period return for that one year?

The price of a zero-coupon bond with maturity 1 year is $943.40. The price of a zero-coupon bond with maturity 2 years is $898.47. For this problem, express all yields as net (not gross) rates. Assume the face values of the bonds are $1000.

1.What is the yield to maturity of the 1 year bond?

2.What is the yield to maturity of the 2 years bond?

3.Assuming that the expectations hypothesis is valid, what is the expected short rate in the first year?

4.Assuming that the expectations hypothesis is valid, what is the expected short rate in the second year ?

5.Assuming the liquidity preference theory is valid and the liquidity premium in the second year is 0.01, what is the expected short rate in the second year?

6.Assuming that the expectations hypothesis is valid, what is the expected price of the 2 year bond at the beginning of the second year?

7.What is the rate of return that you expect to earn if you buy the 2 year bond at the beginning of the first year and sell it at the beginning of the second year?

A real estate developer wishes to study the relationship between the size of home a client will purchase (in square feet) and other variables. Possible independent variables include the family income, family size, whether there is a senior adult parent living with the family (1 for yes, 0 for no), and the total years of education beyond high school for the husband and wife. The sample information is reported below.

1. Develop an appropriate multiple regression equation using stepwise regression. (Use Excel data analysis and enter number of family members first, then their income and delete any insignificant variables. Leave no cells blank - be certain to enter "0" wherever required. R and R2 adj are in percent values. Round your answers to 3 decimal places.)

A real estate developer wishes to study the relationship between the size of home a client will purchase (in square feet) and other variables. Possible independent variables include the family income, family size, whether there is a senior adult parent living with the family (1 for yes, 0 for no), and the total years of education beyond high school for the husband and wife. The sample information is reported below.

1. Develop an appropriate multiple regression equation using stepwise regression. (Use Excel data analysis and enter number of family members first, then their income and delete any insignificant variables. Leave no cells blank - be certain to enter "0" wherever required. R and R2 adj are in percent values. Round your answers to 3 decimal places.)