In: Finance
What types of taxes do we pay as an international student throughout the year and to whom?
In: Finance
The U.S. inflation rate is expected to be 3 percent over the next year, while the European inflation rate is expected to be 1.25 percent. The current spot rate of the euro is $1.19. Using purchasing power parity, the expected spot rate at the end of one year is $____.
1.19 | ||
1.20 | ||
1.21 | ||
1.22 |
In: Finance
In: Finance
Due to a recession, expected inflation this year is only 2.75%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 2.75%. Assume that the expectations theory holds and the real risk-free rate (r*) is 2.5%. If the yield on 3-year Treasury bonds equals the 1-year yield plus 1.5%, what inflation rate is expected after Year 1? Round your answer to two decimal places
In: Finance
To find the portfolio corresponding to an expected rate of return of 0.11 per year, riskless asset with a interest of 6% per year and a risky asset with an expected rate of return of 14% per year and a standard deviation of 20%.
In: Finance
If an investor wants to receive 500000 euros and the expected yield on the 12-year bond is 7.2% then what would be the amount of an initial investment? State the answer as a number with 2 decimals without any currency sign.
In: Finance
You bought a 10-year bond with $100 face value at a price of $101 with a coupon rate of 5.00% paid semiannually. After 5 years, (5 years left in maturity) you decide to sell it and you find that the new yield to maturity is 6.00% APR. What is the percentage change in the bond’s price?
Group of answer choices
-1.46%
-8.36%
-5.21%
5.50%
In: Finance
Data on Trenton Travel Inc. for the most recent year are shown
below, along with the days sales outstanding of the firms against
which it benchmarks. The firm's new CFO believes that the company
could reduce its receivables enough to reduce its DSO to the
benchmarks' average. If this were done, by how much would
receivables decline? Use a 365-day year.
| Sales | $110,000 |
| Days sales outstanding (DSO) | 49.78 |
| Benchmark days sales outstanding (DSO) | 20 |
In: Finance
Consider a 2-year forward on a stock index. The current value of the index is 2,500. The risk-free interest rate is 4% per annum, and the dividend yield on the stock index is 3% per annum. What is the 2-year forward price?
In: Finance