Consider a BB-rated $100 face valued zero coupon debt security with one year to maturity and zero recovery rate. Assume that the annual risk-free rate is 5% and the traded price is $80. The probability of default (PD) is closest to Select one: a. None of the other answers provided is correct. b. PD=8% c. PD= 16% d. PD= 84% e. PD= 19.04%

You expect the following set of possible outcomes for a stock:

What is the variance of the risk-free rate? Please enter your answer rounded to the third decimal place.

Henry is planning to purchase a Treasury bond with a coupon rate of 3.02% and face value of $100. The maturity date of the bond is 15 May 2033. (a) If Henry purchased this bond on 3 May 2018, what is his purchase price (rounded to four decimal places)? Assume a yield rate of 2.39% p.a. compounded half-yearly.

Select one:

a. 107.8175

b. 109.3277

c. 109.3263

d. 109.11

There are many companies that make turbans, but ManMan Headgear is famous for their distinctive blue turbans.

The demand for ManMan turbans is given by P = 100 – 2Q

The cost of producing turbans is given by C = 4Q

1)What Quantity will ManMan produce if they can't use any advanced pricing strategies?

2)What Price will ManMan charge if they can't use any advanced pricing strategies?

3)What will ManMan's profit be?

d. Now a third good, chocolate (C), enters her utility function: U = C x (M + R)

Graph her indifference curve for U = 100, with C on one axis and the combined (M + R) on the other axis.

e. The price of chocolate is $20 per unit, movies are $10, and restaurant meals are $10. Given a budget of $120, what is Susan’s optimal bundle of goods to consume?

Assuming annual interest payments and a principal value of $100, what is the value of a 4-year 6.8% coupon bond when the discount rate is i) 4.8%, ii) 6.8%, and iii) 7.1%? Show that your results are consistent with the relationship between the coupon rate, discount rate, and price relative to par value.

-->(I looked the sample but didn't get it very well), Please explain it clearly, Thank you

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

The yield to maturity for the​ five-year zero-coupon bond is closest​ to:

A. 5.0%

B. ​5.8%

C. ​5.4%

D. ​5.6%

E. ​6.0%

1. Consider a perfectly competitive market where the demand and supply curves are given by QD = 500 − P and QS = −100 + 2P , respectively. Suppose that the government decides to tax the producers by $60 per unit sold.
(a) Determine the pre-tax and after-tax equilibrium price and quantity.
(b) Determine the loss in net benefits due to the tax.
(c)Determine the percentage of the tax burden that falls on the consumers.

using the table, If the selling price is now $50 a unit, calculate the profit (or loss) for each level of units produced.  How many units should the firm produce? copy the table in the answer space and fill in the table.