1)What is the percentage change in price for a zero coupon bond if the yield changes from 5.5% to 9%? The bond has a face value of $1,000 and it matures in 11 years. Use the price determined from the first yield, 5.5%, as the base in the percentage calculation. The percentage change in the bond price if the yield changes from 5.5% to 9% is %
2)With celebrity bonds, celebrities raise money by issuing bonds to investors. The royalties from sales of the music are used to pay interest and principal on the bonds. In April of 2009, EMI announced that it intended to securitize its back catalogue with the help of the Bank of Scotland. The bond was issued with a coupon rate of 6.55% and will mature on this day 31 years from now. The yield on the bond issue is currently 6.35%. At what price should this bond trade today, assuming a face value of $1,000 and annual coupons? The price of the bond today should be $
3) A Ford Motor Co. coupon bond has a coupon rate of 6.95%, and pays annual coupons. The next coupon is due tomorrow and the bond matures 36 years from tomorrow. The yield on the bond issue is 6.1%. At what price should this bond tradetoday, assuming a face value of $1,000 The price of the bond today should be $.
In: Finance
What price do farmers get for their watermelon crops? In the third week of July, a random sample of 42 farming regions gave a sample mean of x = $6.88 per 100 pounds of watermelon. Assume that σ is known to be $2.00 per 100 pounds.
(a) Find a 90% confidence interval for the population mean price (per 100 pounds) that farmers in this region get for their watermelon crop. What is the margin of error? (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
(b) Find the sample size necessary for a 90% confidence level with
maximal error of estimate E = 0.29 for the mean price per
100 pounds of watermelon. (Round up to the nearest whole
number.)
farming regions
(c) A farm brings 15 tons of watermelon to market. Find a 90%
confidence interval for the population mean cash value of this
crop. What is the margin of error? Hint: 1 ton is 2000
pounds. (Round your answers to two decimal places.)
| lower limit | $ |
| upper limit | $ |
| margin of error | $ |
At wind speeds above 1000 centimeters per second (cm/sec), significant sand-moving events begin to occur. Wind speeds below 1000 cm/sec deposit sand and wind speeds above 1000 cm/sec move sand to new locations. The cyclic nature of wind and moving sand determines the shape and location of large dunes. At a test site, the prevailing direction of the wind did not change noticeably. However, the velocity did change. Sixty-five wind speed readings gave an average velocity of x = 1075 cm/sec. Based on long-term experience, σ can be assumed to be 275 cm/sec.
(a) Find a 95% confidence interval for the population mean wind speed at this site. (Round your answers to the nearest whole number.)
| lower limit | cm/sec |
| upper limit | cm/sec |
(b) Does the confidence interval indicate that the population mean
wind speed is such that the sand is always moving at this site?
Explain.
No. This interval indicates that the population mean wind speed is such that the sand may not always be moving at this site.Yes. This interval indicates that the population mean wind speed is such that the sand may not always be moving at this site. Yes. This interval indicates that the population mean wind speed is such that the sand is always moving at this site.No. This interval indicates that the population mean wind speed is such that the sand is always moving at this site.
In: Statistics and Probability
Overproduction of uric acid in the body can be an indication of cell breakdown. This may be an advance indication of illness such as gout, leukemia, or lymphoma.† Over a period of months, an adult male patient has taken ten blood tests for uric acid. The mean concentration was x = 5.35 mg/dl. The distribution of uric acid in healthy adult males can be assumed to be normal, with σ = 1.75 mg/dl.(a) Find a 95% confidence interval for the population mean concentration of uric acid in this patient's blood. (Round your answers to two decimal places.)
lower limit ________
upper limit ________
margin of error _______
(b) What conditions are necessary for your calculations? (Select all that apply.)
(c) Give a brief interpretation of your results in the context of this problem.
(d) Find the sample size necessary for a 95% confidence level with maximal error of estimate E = 1.14 for the mean concentration of uric acid in this patient's blood. (Round your answer up to the nearest whole number.)
_________ blood tests
____________________________________________________________________________________________________________________________________
2.What price do farmers get for their watermelon crops? In the third week of July, a random sample of 41 farming regions gave a sample mean of x = $6.88 per 100 pounds of watermelon. Assume that σis known to be $1.94 per 100 pounds.
(a) Find a 90% confidence interval for the population mean price (per 100 pounds) that farmers in this region get for their watermelon crop. What is the margin of error? (Round your answers to two decimal places.)
lower limit $ _________
upper limit $ _________
margin of error $_________
(b) Find the sample size necessary for a 90% confidence level with maximal error of estimate E = 0.29 for the mean price per 100 pounds of watermelon. (Round up to the nearest whole number.)
_________ farming regions
(c) A farm brings 15 tons of watermelon to market. Find a 90% confidence interval for the population mean cash value of this crop. What is the margin of error? Hint: 1 ton is 2000 pounds. (Round your answers to two decimal places.)
lower limit $___________
upper limit $ _________
margin of error $ ________
In: Statistics and Probability
Zero growth: Ron Santana is interested in buying the stock of First National Bank. While the bank's management expects no growth in the near future, Ron is attracted by the dividend income. Last year the bank paid a dividend of $5.65. If Ron requires a return of 14 percent on such stocks, what is the maximum price he should be willing to pay for a share of the bank's stock?
In: Finance
Weismann Co. issued 15-year bonds a year ago at a coupon rate of 4.9 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 4.5 percent, what is the current bond price?
In: Finance
A challenger (Firm 2) is considering entry into the local phone market in the Bay Area. The incumbent (Firm 1), predicts that a price war will result if Firm 2 enters. If Firm 2 stays out, Firm 1 earns monopoly profits valued at $10 million (net present value, or NPV of profits), while Firm 2 earns zero. If Firm 2 enters, it must incur irreversible entry costs of $2 million. If there is a price war, each firm earns $1 million (NPV). Firm 1 always has the option of accommodating entry (i.e., not starting a price war). In such a case, both firms earn $4 million (NPV). Suppose that the timing is such that the Firm 2 first has to choose whether or not to enter the market. Then Firm 1 decides whether to “accommodate entry” or “engage in a price war.”
What is the subgame perfect equilibrium outcome for this sequential game? (Set up a game tree.)
In: Economics
The following data was collected to explore how the number of square feet in a house, the number of bedrooms, and the age of the house affect the selling price of the house. The dependent variable is the selling price of the house, the first independent variable (x1x1) is the square footage, the second independent variable (x2x2) is the number of bedrooms, and the third independent variable (x3x3) is the age of the house.
| Square Feet | Number of Bedrooms | Age | Selling Price |
|---|---|---|---|
| 29732973 | 55 | 1515 | 306000306000 |
| 27552755 | 55 | 1313 | 305500305500 |
| 26672667 | 44 | 1313 | 303900303900 |
| 26172617 | 44 | 1111 | 284500284500 |
| 23642364 | 44 | 99 | 276000276000 |
| 18881888 | 44 | 88 | 197000197000 |
| 16861686 | 33 | 77 | 188700188700 |
| 13651365 | 22 | 77 | 155700155700 |
| 10801080 | 22 | 22 | 131900131900 |
Copy Data
Step 1 of 2 :
Find the p-value for the regression equation that fits the given data. Round your answer to four decimal places
In: Statistics and Probability
1) Suppose that an Intel single-stock futures contract expires in four months. The stock pays a dividend in two months. We have the following information. Annualized, continuously compounded risk-free interest rate for 2-month period: r = 3.86%. Annualized, continuously compounded risk-free interest rate for 4-month period: r = 4.95%. Current spot price of Intel stock: $30 per share. Dividend per share of $0.24 in two months. What must the futures price equal in order than no arbitrage opportunity exist?
2) The spot price of an investment asset is $47 per unit and the annualized risk-free rate for all maturities (with continuous compounding) is 6%. The asset provides an income of $1.68 per unit at the end of the first and second years. Assuming no arbitrage opportunities exist, what is the forward price on a forward contract that matures in 3 years?
In: Finance
The following data was collected to explore how the number of square feet in a house, the number of bedrooms, and the age of the house affect the selling price of the house. The dependent variable is the selling price of the house, the first independent variable (x1) is the square footage, the second independent variable (x2) is the number of bedrooms, and the third independent variable (x3) is the age of the house. Effects on Selling Price of Houses Square Feet Number of Bedrooms Age Selling Price 2460 3 15 296700 2261 4 7 101700 1748 3 7 201000 2743 4 6 207400 1702 5 4 129300 1756 4 2 147600 1728 3 3 184600 1384 5 12 163400 1551 2 15 160900 Step 1 of 2: Find the p-value for the regression equation that fits the given data. Round your answer to four decimal places
In: Statistics and Probability
PEI real estate company claimed that the sales price of residential properties in charlottetown averaged $280000 in 2019. in the first six months of 2019, sales for a sample of 75 houses totaled $22.5 million dollars. from past analysis, the price for houses sold was normally distributed with a standard deviation of $75000.
a)what is the mean house price for 2019?
b0assuming that the standard deviation of the population remains stable, what is the range for the mean housing price from the sample in 2019 (assume a two-tail test):
i)at the 95% confidence level.
ii)at the 99% confidence level.
iii)interpret the results with respect to PEI real estate company's claim.
c)after review of the 2019 sample, the standard deviation was determined to be $60,000.
i)determine the 95% confidence interval for 2019 housing prices.
ii) does the average claimed by the real estate company fall within this range>
iii)interpret the results
In: Statistics and Probability