1. Suppose that you are tasked with managing a liability of $5,000 worth of 6% 4-year, annual coupon bonds when the interest rate is 4.5%. You want to minimize the interest rate risk by immunizing this position through value and duration matching. If you have 2-year and 10-year zero-coupon bonds available to create the hedge, how many dollars should you invest in each bond? Explain at least three reasons this hedge will not be perfect one year after you set it up.

2. Assume that you sell short 350 shares of a stock when the market price is 32.10–32.15. Your broker demands a 20% haircut for collateral and pays a short rebate of 3%. You borrow all needed cash for the transaction above the short proceeds at an interest rate of 4.8%. One year later, the price is 29.50– 29.55, and you close the position. What is the net profit (in $)?

3. Assume that you sell short a 3.5% semi-annual coupon bond with 7 years to maturity when the market interest rate is 4% (and you buy on a coupon payment date so that the price is clean). You deposit the short proceeds plus a 15% haircut that you pay out of your own capital. 18 months later, interests rates have risen to 4.3%, and you close the position by buying back the bond. If the repo rate is 2%, what is the net profit from these trades? What is the percent return, based on your out-ofpocket capital investment only? What is the effective annual rate for this investment?

4. If a non-dividend paying stock is trading today at $52 when the interest rate is 3%, what is the 8- month forward price? If the forward contract is available at a price of $51, what three transactions should you make in order to earn the available arbitrage profit? How much money could you make 8 months from now, and what is the present value of that profit today?

5. A stock is trading today at $90, and the company is expected to pay quarterly dividends of $0.45. (Assume that the stock is bought on an ex-dividend date, so the first dividend is to be paid three months after the purchase.) The continuously compounded interest rate is 4.2%. What is the 10-month forward price? What is the price of a prepaid 10-month forward? If the price of the stock in 10 months is $95, what is the profit or loss from the forward contract?

6. If the exchange rate is currently $2.10/₤ when the pound interest rate is 3% and the dollar interest rate is 1.5%, what is the correct price for a 1-year forward contract? (All rates are continuously compounded.)

7. Assume that you have a well-diversified portfolio valued at $3 million with a beta of 1.8, but you have a negative outlook on the short-term prospects of the market and want to reduce your market risk using index futures. In particular, you want to reposition your portfolio to have a beta to 0.7. Assume that the S&P 500 is trading at a price of 2,800, the futures multiplier is $250, and the futures price is currently 2,770. How many futures contracts would you need to trade long or short in order to alter the beta?

Question 6 and 7 are the ones I'm having trouble with.

1-4 Economic Theories and Models Are the following topics ones that would be covered in microeconomics or macroeconomics? Explain. The effects of an increase in the supply of lumber on the home-building industry Changes in the national unemployment rate Changes in the inflation rate Changes in the country’s economic growth rate The price of concert tickets?

1. State the null and alternative hypotheses (take round 1 scores - round 4 scores).
2. Is this a lower tail, upper tail or two-tailed test?
3. Use Excel to carry out the test. Use a = 0.05. What is the value of the test statistic?
4. What is the p-value?
5. What is your conclusion using a = 0.05?
6. State your conclusion in words a non-statistician could understand.

1. Use the guidelines of this section to sketch the curve. y = x(x − 4)^3 . Provide answer to parts below–you may need another piece of paper. (Note: Domain is all Reals; No Symmetry; No Asymptotes.

A. Intercepts

B. Intervals of Increase or Decrease

C. Local Max or Min Values

D. Concavity and points of Inflection

E. Sketch the graph.

Thank you!

There is a fair coin and a biased coin that flips heads with probability 1/4.You randomly pick one of the coins and flip it until you get a heads. Let X be the number of flips you need. Compute E[X] and Var[X]

1.Reducing scrap of 4-foot planks of hardwood is an important factor in reducing cost at a wood-flooring manufacturing company. Accordingly, engineers at Lumberworks are investigating a potential new cutting method involving lateral sawing that may reduce the scrap rate. To examine its viability, samples of 500 and 400 planks, respectively, were examined under the old and new methods. Sixty-two of the 500 planks were scrapped under the old method, whereas 33 of the 400 planks were scrapped under the new method.

1a. Construct the 90% confidence interval for the difference between the population scrap rates between the old and new methods, respectively.

1b. Select the null and alternative hypotheses to test for differences in the population scrap rates between the old and new cutting methods, respectively.

• H₀: p₁ − p₂ = 0; H_A: p₁ − p₂ ≠ 0

• H₀: p₁ − p₂ ≤ 0; H_A: p₁ − p₂ > 0

• H₀: p₁ − p₂ ≥ 0; H_A: p₁ − p₂ < 0

1c. Using the part a results, can we conclude at the 10% significance level that the scrap rate of the new method is different than the old method?

we____ H0. At the 10% significance level, we _____ conclude the proportions are different between the old and the new methods.

Two magnifying glasses are for sale at a store. Magnifying glass 1 has a 4-in diameter with ling focal length, and glass 2 has 1 -in diameter with a short focal length. a) Which mannifying glass should you purchase if you wish to examine tiny insects? b) Which glass should you purchase if you wish to start a campfire using sunlight?

CATABOLISM OF CARBOHYDRATED CAN BE DIVIDED INTO 4 MAIN STAGES

Stage 1 is ___________ which occurs in the __________-. At the end of stage 1 Carbohydrates have been converted to ______________.

Stage 2 for monosaccharides is formation of pyruvate which occurs in the ________. Formation of pyruvate from glucose is called ________________.

Under aerobic conditions, pyruvate moves to the mitochondria where it is converted to ____________, resulting in fewer ATP being produced.

Stage 3: involves a cycle of chemical reactions. Three common names for this cycle are:

citric acid cycle, tricarboxylic acid cycle and Kreb's. The molcule ________ enters the Citric Acid Cycle. What are the products of the CItric Acid Cycle?

_______________________________________________________________________________________________________________________. The electron carries (coenzymes) involved are derivatives of ______________ vitamins.

Stage 4: Electron Transport and Oxidative phosphorylation (oxphos) Reduced coenzymes carry ______ to ______ __________ ________ found in the inner membrane of the ____________. Electrons are transferred along carrier molecules. This helps set up a ______ gradient which used to power a large motor like enzyme called ATP synthase. This process accounts for 90% of the cell's _________ production.

In a certain​ lottery, an urn contains balls numbered 1 to 37. From this​ urn, 4 balls are chosen​ randomly, without replacement. For a​ $1 bet, a player chooses one set of four numbers. To​ win, all four numbers must match those chosen from the urn. The order in which the balls are selected does not matter. What is the probability of winning this lottery with one​ ticket?

Programming assignment 4 : C++

Write a program to do the following:

1.Define a structure to store a date, which includes day(int), month(int), and year(int).

2.Define a structure to store an address, which includes address(house number and street)(string), city(string), state(string), zip code (string).

3.Define a class to store the following information about a student. It should include private member variables: name(string), ID (int), date of birth (the first structure), address (the second structure), total credit earned (int), and GPA (double). And it also has public member functions: constructors(at least one default and one non-default), Accessors and Mutators for each member variable, and so on.(write definitions of at least one member function outside the class).

4.Test each member function of the class in main function. Each piece information of a student is inputted by user, not initialized by you (programmer)except for default constructor.5.In main function, choose any one student you defined,and then check whether the student lives in the zip code of 11235 (close to school)or not,and check whether the student’s birthday is in November or not.