Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate and a 20-year maturity. At the time of the purchase, it had an expected yield to maturity of 9.33%. If Janet sold the bond today for $1,091.83, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.

Last year Janet purchased a $1,000 face value corporate bond with a 7% annual coupon rate and a 15-year maturity. At the time of the purchase, it had an expected yield to maturity of 7.04%. If Janet sold the bond today for $1,004.41, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.

Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate and a 25-year maturity. At the time of the purchase, it had an expected yield to maturity of 13.17%. If Janet sold the bond today for $1,170.06, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.

Last year Janet purchased a $1,000 face value corporate bond with an 7% annual coupon rate and a 20-year maturity. At the time of the purchase, it had an expected yield to maturity of 6.03%. If Janet sold the bond today for $1,080.57, what rate of return would she have earned for the past year? Do not round intermediate calculations. Round your answer to two decimal places.

Last year, those who took the LSAT test a second time score an average of 2.8 points higher than the first time. Suppose two independent and identically distributed random samples are drawn from this year’s exam: first-time and second-time LSAT takers.

a) Write the hypothesis test where the null is that the difference in scores between first- and second-time LSAT takers has not changed since last year and a two-sided alternative.
b) Suppose two independent random samples are drawn. One random sample contains the LSAT scores of first-time takers and has 25 observations and a sample variance of 256. The other random sample contains the LSAT scores of second-time takers and has 16 observations and a sample variance of 144. Derive the rejection rule at ! = 0.20 of the test in part a).

​(Constant dividend payout ratio policy​)

The Blunt Trucking Company needs to expand its fleet by 70 percent to meet the demands of two major contracts it just received to transport military equipment from manufacturing facilities scattered across the United States to various military bases. The cost of the expansion is estimated to be $11million. Blunt maintains a 40 percent debt ratio and pays out 50 percent of its earnings in common stock dividends each year.

a. If Blunt earns $4 million next​ year, how much common stock will the firm need to sell in order to maintain its target capital​ structure?

b. If Blunt wants to avoid selling any new stock but wants to maintain a constant dividend payout percentage of 50

​percent, how much can the firm spend on new capital​ expenditures?

a. If Blunt earns $4 million next​ year, how much common stock will the firm need to sell in order to maintain its target capital​ structure?

​$ million  ​(Round to two decimal​ places.)

b. If Blunt wants to avoid selling any new stock but wants to maintain a constant dividend payout percentage of

50 ​percent, how much can the firm spend on new capital​ expenditures?

​$ million  ​(Round to two decimal​ places.)

Nationally, about 11% of the total U.S. wheat crop is destroyed each year by hail.† An insurance company is studying wheat hail damage claims in a county in Colorado. A random sample of 16 claims in the county reported the percentage of their wheat lost to hail.

The sample mean is x = 12.2%. Let x be a random variable that represents the percentage of wheat crop in that county lost to hail. Assume that x has a normal distribution and σ = 5.0%. Do these data indicate that the percentage of wheat crop lost to hail in that county is different (either way) from the national mean of 11%? Use α = 0.01.

(a) What is the level of significance?


State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test?

H₀: μ = 11%; H₁: μ ≠ 11%; two-tailedH₀: μ = 11%; H₁: μ < 11%; left-tailed    H₀: μ ≠ 11%; H₁: μ = 11%; two-tailedH₀: μ = 11%; H₁: μ > 11%; right-tailed

(b) What sampling distribution will you use? Explain the rationale for your choice of sampling distribution.

The standard normal, since we assume that x has a normal distribution with known σ.The Student's t, since we assume that x has a normal distribution with known σ.    The standard normal, since we assume that x has a normal distribution with unknown σ.The Student's t, since n is large with unknown σ.

Compute the z value of the sample test statistic. (Round your answer to two decimal places.)


(c) Find (or estimate) the P-value. (Round your answer to four decimal places.)


Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

At the α = 0.01 level, we reject the null hypothesis and conclude the data are statistically significant.At the α = 0.01 level, we reject the null hypothesis and conclude the data are not statistically significant.    At the α = 0.01 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the α = 0.01 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.

(e) State your conclusion in the context of the application.

There is sufficient evidence at the 0.01 level to conclude that the average hail damage to wheat crops in the county in Colorado differs from the national average.There is insufficient evidence at the 0.01 level to conclude that the average hail damage to wheat crops in the county in Colorado differs from the national average.    

You are to play three games. In the first game, you draw a card, and you win if the card is a heart. In the second game, you toss two coins, and you win if one head and one tail are shown. In the third game, two dice are rolled and you win if the sum of the dice is 7 or 11. What is the probability that you win all three games? What is the probability that you win exactly two games?

Solve the question using Tree Diagram. Please give explanation for the answer.

In February, Cap Inc. announced that it would split into two independent publicly traded companies: one comprised of its Old Navy brand, and the second a yet-to-be-named company that includes its other brands like Banana Republic and Athleta. The planned breakup is an acknowledgment of the two chains' diverging fortunes and how much Gap has lost its once-powerful grip on American consumers. For several years, Old Navy has outperformed its sister brands Gap and Banana Republic with its lower price-points and catchy marketing. Old Navy now exceeds the original brand in sales, making up nearly half of Gap Inc.'s $16.6 billion of sales in 2018.

In your opinion, what are the benefits and downsides to splitting Gap into two firms? How did Gap's stock react to the news in after-market trading? How would you explain this reaction? Will the separation save the company in the long run? Please elaborate on your answers.