1- The price of a 20 year, 12% bond is $875. There is an option, and the firm may purchase the bond back in 4 years. Derive the yield to maturity and the yield to call.

2- Compute the price of a 30 year 9% bond, if yields to maturity are 6% presently. Convince that the price is reasonable.

those are the full questions

While deciding on the strategy for the coming year, Nitin is faced with the challenge on how to mitigate the currency risk. In the past, there have been instances where Nitin has quoted the price at the prevalent currency rate and by the time the export proceeds were realised, he received a lesser value for his goods. Nitin extracted the data of Foreign Exchange Rates for the past year and, on analysis, found that there had been an average 5-7 per cent fluctuation in the foreign currency rates against the Indian Rupee on a daily basis. Nitin was unable to decide whether to hedge the foreign currency or not. Narayan advised Nitin that there were two ways of hedging the currency risk:

1. A forward contract between a bank and a customer calls for a delivery, at a fixed future date, of a specified amount of one currency against another currency at an exchange rate fixed at a time the contract is entered into.

2. An option is a financial instrument that gives the holder the right but not the obligation to sell or buy another financial instrument at a set price and expiration date.

Recommend the best method of hedging currency risk and explain why you chose it.

( B ) : In each quarter of every year, the maximum capacity of the "MBA

Co." is 4000 hours available for sorting and re-packing two sorts of imported apples in special boxes where each box contains only one ton of either the red or the yellow apples. The monthly common committed fixed costs of the company is L.E. 100000, and the following estimates are presented in relation to the coming quarter which will start July 1, 2015 :-

eqrequired :

Use appropriate traditional managerial accounting marginal analysis techniques to determine the optimal imports mix the   company should consider for the third quarter of 2015, then prepare this quarter's expected detailed income statement.

Explain the effect of an expectation of a raise NEXT year on net borrowers

14,       A residential property is acquired on the first day of the tax year for a purchase price of $300,000 plus acquisition costs of $15,000. The property is held for five years and sold on the last day of the tax year.

a. What is the cost-recovery deduction for each full year of acquisition?                                      

b. What is the annual cost-recovery deduction for each full year of ownership?                           

c. What is the cost-recovery deduction for the year of disposition?                                               

d. What is the total cost recovery taken during the recovery period?                     

Assumes that the marginal propensity to consume in Maldives is 0.9. For the next year it is estimated that the economy would receive investments worth of RF 50 million, government would purchase goods and services worth of RF 40 million, and taxes would be RF 40 million. Assumes exports and imports to be zero.

Questions:

If the government cuts its expenditure on goods and services by 30 million, what would be the change in equilibrium expenditure now?   

The government decided to purchase RF 40 million worth of goods and services, and to cut taxes to RF 30 million. What would be the change in equilibrium expenditure now?

The government simultaneously decided to cuts its’ both purchase of goods and services and taxes to RF 30 million. What would be the change in equilibrium, expenditure now?

You will be paying $9,000 a year in tuition expenses at the end of the next 3 years. Bonds currently yield 16%.

a What is the present value of your obligation ? __________________

b What is the duration of your obligation ? ______________________

c Suppose you wish to fund your obligation using 1-year zero-coupon bonds and perpetuity bonds. How much of 1-year zero __________________________ and how much of perpetuity bonds ____________________ (in market value ) will you want to hold to both fully fund and immunize your obligation?

d. Suppose you buy 1-year zero-coupon bonds and perpetuity bonds to immunize your obligation. Now suppose that rates immediately increase to 17%. What is your tuition obligation now? __________________________

BONUS POINTS What is the value of your position in perpetuities now? _________________________ What is the value of your position in 1-year-zero-coupon bonds now?______________

Changing the Cost Formula for a Month to the Cost Formula for a Year During the past year, the high and low use of three different resources for Fly High Airlines occurred in July and April. The resources are airplane depreciation, fuel, and airplane maintenance. The number of airplane flight hours is the driver. The total costs of the three resources and the related number of airplane flight hours are as follows:   

Required:

If required, round calculations and answers to nearest dollar.

1. Develop an annual cost formula for airplane depreciation.

Total annual cost of airplane depreciation = ____ x ($__________)

Develop an annual cost formula for fuel.

Total annual cost of fuel = $_________×___________

Develop an annual cost formula for airplane maintenance.

Total annual cost of airplane maintenance = (___________x $___________) + ($__________×_____________)

2. Using the three annual cost formulas that you developed, predict the cost of each resource in a year with 487,000 airplane flight hours.

Total annual cost of airplane depreciation $

Total annual cost of fuel $

Total annual cost of airplane maintenance $

This is has to be SBAR format ?

J.D. is a 32 year old male that was admitted into the acute psychiatric unit due to an acute exacerbation of paranoid schizophrenia due to aggressive behaviors in the public. Height 5’9, weight 175, vitals 131:80, pulse 64, resp 18, temp 98.7, full code, NKA, treatments: urine drug screens, IND transfer, married, catholic religion, nurse by occupation, no cultural background, no pain, regular diet, no oxygen, no wounds. Patients admitting diagnosis was psychosis NOS. J.D. past medical history includes, hypertension, insomnia, PTSD, GERD, chemical dependency concerns (i.e. alcohol). Patient’s current psychiatric diagnosis is paranoid schizophrenia. Treatments: Urine Drug Screens. Medications include; Haldol 5 mg PO BID, Haldol Deaconate IM injection 50 mg monthly, Vistaril 50 mg PO TID for agitation, Zyprexa 10 mg at HS, Antabuse 225 mg daily, trazadone 50 mg HS, omeprazole 20 mg at HS, prazosin 1 mg at HS, Neurontin 100 mg PO.

You are considering investing in a project in Mexico. The project will be a 2 year project, has an initial cost of 100K USD, and expected after tax profit of 1 million MXP per year. You expect the MXP to be valued at 0.12 USD/MXP. There are two major risks that you think have the potential to significantly affect project performance, which you assume are independent: * You think with probability of 0.17 that the MXP will depreciate to 0.1 USD/MXP. * You also think that with probability of 0.28 the Mexican economy will weaken substantially, in which case the project's after tax annual cash flow will be only 600K MXP. Your required return on the project is 18%. What is the expected value of the NPV of this project, as measured in USD?