The following table summarizes prices of various​ default-free zero-coupon bonds​ (expressed as a percentage of the face​ value):

Maturity ​(years) 1 2 3 4 5

Price ​(per $100 face​ value) $95.06, $90.74, $86.20, $81.41, $76.40

a. Compute the yield to maturity for each bond.

b. Plot the​ zero-coupon yield curve​ (for the first five​ years).

c. Is the yield curve upward​ sloping, downward​ sloping, or​ flat?

a) On your sister’s 10th birthday, your parents want to invest a certain amount to enable her to withdraw R25 000 every six months from her 18th to her 24th birthday (both birthdays included). Calculate the sum they will have to invest if compounded interest is estimated at 12% per annum, compounded biannually.

b) What is the present value of a perpetuity that pays R4 800 per year if the first payment does not begin until four years later and if 12% per annum is the relevant discount rate?

c) if you want to withdraw R1 000 annually for the next nine years, and R1 500 annually in the three years thereafter with all payments occurring at the end of each year, determine the amount you should initially invest to fund your withdrawals given a rate of return of 7% per annum. Round your answer to the nearest Rand

Consider two securities that pay risk-free cash flows over the next two years and that have the current market prices shown here:

1. What is the no-arbitrage price of a security that pays cash flows of $100 in one year and $100 in two years?      
2. What is the no-arbitrage price of a security that pays cash flows of $100 in one year and $500 in two years?
3. Suppose a security with cash flows of $50 in one year and $100 in two years is trading for a price of $130. What arbitrage opportunity is available?

Assume the base year is given as 2017 and the market basket for the consumer price index has two products–meat and potatoes–with the values in 2017 and 2018 for price and quantity given by the table above. The Consumer Price Index for 2018 equals

2)

If the price index in an certain economy rises in three consecutive years from 100 to 120 to 140, then such an economy is experiencing

5. Consider a newlywed who is planning a wedding anniversary gift of a trip to Dubai for her
husband at the end of 10 years. She will have enough to pay for the trip if she invests $5,000
per year until that anniversary and plans to make her first $5,000 investment on their first
anniversary. Assume her investment earns an 8 percent interest rate, how much will she have
saved for their trip if the interest is compounded in each of the following ways?
a. Annually
b. Quarterly
c. Monthly
6. If you applied for a loan of $10,000 from two different banks, and Bank Y makes an offer to
charge interest of 7% compounded monthly and Bank Z offers you 8% annual interest due at the
end of the year. What will be the difference in the Effective Interest Rate charged by the two
banks?
7. Your grandfather left an inheritance for you of $50,000. However you can only drawdown on
the investment as follows:
Years 1 – 4 $10,000 and
Year 5 $40,000
Interest on the fund is 7.5%. What is the present worth of this inheritance?
8. Your choice of vehicle is the Honda CRV, which you plan to purchase in 5 years time after you
have completed your studies. You plan to save a certain sum of money every quarter for the
next 5 years, and the bank offers you a rate of 8% per annum on your savings. How much do
you need to save every quarter to meet the price of your vehicle which is $150, 000.

Consider the following bonds:

1. The price of bond C at 6.7% YTM per $100 face value is:

2.The price of bond C at 5.7% YTM per $100 face value is:

3. The percentage change in the price of Bond C is:

4.The price of bond D at 6.7% YTM per $100 face value is:

5. The price of bond D at 5.7% YTM per $100 face value is:

6. The percentage change in the price of Bond D is:

Please help with these, thank you!

Ramona Heart is a 75 y. o. female with a history of osteoarthritis and degenerative joint disease. She lives with her husband in a single family home. She has been active until recent changes related to pain and stiffness in her right hip. After consulting her primary care giver, she has agreed to have a right total hip replacement. She is admitted to the hospital for surgery the next morning at 7:30A. Her husband and daughter are at her bedside.

Post Hip Replacement Assessment:

Vital signs: R 16 HR 88 BP 136/72 T 97.8; skin cool to touch, Ramona is drowsy, but alert. Ramona states pain of 2 out of 10, but stiff. Client is NPO since surgery and has IV fluids infusing: D5W at 100 mL/hr. Wound assessment: large gauze dressing over site, no redness or bleeding noted. A wound drain is draining to suction, 50 mL dark red drainage noted. Foley catheter in place and draining to gravity, 350 mL light yellow urine in bag. Lower extremities are cool to touch, with dorsalis pedis and posterior tibial pulses noted bilaterally, brisk capillary refill < 3 seconds. Ramona states positive sensation, no tingling.

Assignment:

1. Construct in approved NANDA format 3 nursing diagnosis related to care of client having surgery (hip replacement surgery)
2. Determine 5 expected outcomes related to care of client having surgery (hip replacement surgery)
3. Develop a plan of care for Ramona Heart

You are given a coupon-bond whose remaining term is 5 years with face value of 100$ and coupon rate of 5%, paid annually, with a first payment starting a year from now. Assume also that the annual yield is 6%.

a) Calculate the interest accrued as well as the dirty and clean bond prices
at times 0.5 and 1.6. Assume continuous compounding is used to model
the dirty price between coupon payments.
(b) Compute the dirty prices Bk?, Bk immediately prior and immediately after
the coupon payments in a table, and graph the dirty and clean price of
the bond over the remaining 5 year term.

3. A rapidly growing firm is currently paying a dividend of $4.00. The dividend growth rate is expected to be 8% for the next 3 years. The dividend growth rate after the first 3 years is expected to be 2% annually. The expected return on the market is 7%, the risk free rate is 3% and the firm’s Beta is 1.20.

a. Calculate the estimated price (intrinsic value) for a share of this firm’s stock.

b. What does this firm’s Beta indicate about the firm’s overall riskiness?

c. Use Goal Seek to determine what the expected return of the market would need to be to yield an estimated price (intrinsic value) of $100.

4. Suppose that Jana cares only about apples and lettuce. Her utility function is U = A0.5L0.5, where A is the number of apples and L is the number of heads of lettuce that she consumes. The price of apples is $1, and the price of lettuce is $4. Suppose that Jana must have 100 units of utility and wants to achieve this level of utility with the lowest possible expenditure.

a. How can Jana's expenditure minimization problem be expressed as a Lagrangian equation? b. Derive the first-order conditions for Jana's minimization problem.
c. What is the solution to Jana's minimization problem?
d. How much does this optimal solution cost?