2. Suppose that the treasurer of IBM has an extra cash reserve of USD100,000,000 to invest for six months. The annual interest rate is 4% in the United States and 3% in Germany. The spot exchange rate EUR/USD is 0.94 and the six-month forward exchange rate EUR/USD is 0.92. The treasurer of IBM does not wish to bear any exchange risk. Should he invest in US or in Germany to maximize the return? How much will his profit and return be? Please show all your work

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of €1,000, 15 years to maturity, and a coupon rate of 6.1 percent paid annually. If the yield to maturity is 7.2 percent, what is the current price of the bond? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

The International Criminal Court (ICC) was established to bring justice to those committing crimes against humanity, war crimes, or genocide. It was established as an extension of the Rome Statute, and only has jurisdiction over countries that signed this treaty. At this time, the United States is not part of this agreement, and thus does not fall under its jurisdiction. Construct an argument for joining such a treaty, detailing the benefits that international treaties may offer their members and which also addresses the possible public concerns over the loss of national sovereignty.

(1 Question, 2-parts) Consider automatic stabilizers (aka non-discretionary fiscal policy): 1) How does the United States' structure of taxes and government spending add stability in this specific scenario: The U.S. economy is experiencing high GDP growth rates and has a high (and increasing) inflation rate? 2) What effect do automatic stabilizers have on the U.S. Government Budget if the economy is sliding into a recession? Please be specific in describing the impacts on the budget, and only if the economy is entering a recession.

Assume the following information:

90?day U.S. interest rate = 4%

90?day Malaysian interest rate = 3%

90?day forward rate of Malaysian ringgit = $.400

Spot rate of Malaysian ringgit = $.404

Assume that the Santa Barbara Co. in the United States will need 500,000 ringgit in 90 days. It wishes to hedge this payables position. Would it be better off using a forward hedge or a money market hedge? Substantiate your answer with estimated costs for each type of hedge.

Assume the following information:

90?day U.S. interest rate = 4%

90?day Malaysian interest rate = 3%

90?day forward rate of Malaysian ringgit = $.400

Spot rate of Malaysian ringgit = $.404

Assume that the Santa Barbara Co. in the United States will need 500,000 ringgit in 90 days. It wishes to hedge this payables position. Would it be better off using a forward hedge or a money market hedge? Substantiate your answer with estimated costs for each type of hedge.

Assume the following information:

90?day U.S. interest rate = 4%

90?day Malaysian interest rate = 3%

90?day forward rate of Malaysian ringgit = $.400

Spot rate of Malaysian ringgit = $.404

Assume that the Santa Barbara Co. in the United States will need 500,000 ringgit in 90 days. It wishes to hedge this payables position. Would it be better off using a forward hedge or a money market hedge? Substantiate your answer with estimated costs for each type of hedge.

Horizontal drilling and hydraulic fracking have changed the prospects of the oil industry from an industry facing production shortages to one facing surpluses. To date the United States has been the only country to embrace these new technologies. It is widely believed that many other countries have formations and basins that would be productive using these new technologies. Look up a couple of articles and list your opinions as to why other countries are not adopting horizontal drilling and hydraulic fracking. Cite your sources.

1. What types of foods are fortified? Give an example.

2. In order for fortified foods to have their intended impact, what conditions are required?

3. Do consumers need to be aware that a food is fortified in order to receive benefits?

4. Are fortified foods necessarily good for us? Give an example of a fortified food that could also be high in added sugars, saturated fat, and sodium

5. Do you think food fortification is still necessary in the United States today? Why or why not?

1. (In one paragraph) Explain how the Bureau of Labor Statistics uses two parts of a fraction to compute the unemployment rate each month. Then describe how the concept of "Natural Unemployment" within a market economy means that the unemployment rate is always above zero (0.0%). And make sure to discuss whether (or not) you think that the United States economy is currently near the "Full Employment" level.

2. Summarize how Frictional Unemployment and Structural Unemployment are forms of Natural Unemployment.