Please show me how to complete questions d,i, ii, iii and iv. e.f
You have following liability: 29-year bond, 6.5% annual coupon, market interest rate is 5%.
The Ppresent value of this liability? PV = 1227.12 The duration of this liability? Duration = 15.12
d. You want to consider immunizing the liability using 8-year and 30- year zero coupon-bonds.
i. What are the investment weights needed for the two bonds?
ii. What are the present values of the two bonds needed to immunize the liability?
iii. What are the face values of the two bonds needed to immunize the liability?
iv. Build a sensitivity table showing the results of changes in interest rates:
|
Weight |
3% |
4% |
5% |
6% |
7% |
|
|
Liablility |
||||||
|
Bond (8 yrs) |
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|
Bond (30 yrs) |
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|
Portfolio sum |
e. Which strategy (from parts c and d) would you recommend, based solely on price sensitivity?
f. What additional factors might you want to consider before choosing between the two strategies?
In: Finance
A political analyst was curious if younger adults were becoming more conservative. He decided to see if the mean age of registered Republicans was lower than that of registered Democrats. He selected an SRS of 128 registered Republicans from a list of registered Republicans and determined the mean age to be = 39 years, with a standard deviation s1 = 8 years. He also selected an independent SRS of 200 registered Democrats from a list of registered Democrats and determined the mean age to be = 40 years, with a standard deviation s2 = 10 years. Let μ1 and μ2 represent the mean ages of the populations of all registered Republicans and Democrats, respectively. Suppose that the distributions of age in the populations of registered Republicans and of registered Democrats have the same standard deviation. Assume the pooled two-sample t procedures are safe to use. Reference: Ref 7-9 Suppose the researcher had wished to test the hypotheses H0: μ1 = μ2, Ha: μ1 < μ2. The P-value for the pooled two-sample t test is?
between 0.10 and 0.05? Less than 0.01? Between 0.05 and 0.01? Greater than 0.10? Please show the work thank you!!! I'd like to know how this should work :)
In: Statistics and Probability
X Corporation owns real and personal property in New York. Under New York law, X is liable for taxes on real property on the first day of any payment date if it owns real property in the state. The dates are 2/1, 5/1, 8/1, 11/1. For 20X7 the amounts due on each date are $300. Under New York law, a taxpayer is liable for personal property taxes on property held on the first day of the year, payable 60% on July 1 following, and 40% on the 1st day of February of the succeeding year. For 20X7, X pays $300 on 11/1/X7 for the last quarter real estate taxes, and $6,000 of personal property taxes on 7/1/X7. The remaining $4,000 of personal property taxes are paid on 2/1/X8. When may these taxes be deducted?
In: Accounting
American Steel has issued $50 million in long-term bonds, with a face value of $1,000 paying a 9% coupon. The bonds are now trading at a 15% premium to their face value providing a yield-to-maturity of 7%. The firm also has 1.5 million shares of common stock that were issued at $43/share at the company’s IPO and are currently trading at $56/share. American Steel is a mature firm that paid a $7 dividend last year, and dividends are expected to grow at 2% indefinitely. American Steel also has 500,000 preferred shares issued that are trading at $10/share with a dividend of $1. Treasury bills are currently yielding 5%, the firm has a Beta of 1.1, and its tax rate is 35%. Please show your answer to one decimal place.
i) What is the value of the firm?
ii)What is the market value of the firm’s debt and equity (common/pref)?
iii) What is the firm’s weighted average cost of capital?
In: Finance
You are attempting to value a call option with an exercise price of $104 and one year to expiration. The underlying stock pays no dividends, its current price is $104, and you believe it has a 50% chance of increasing to $118 and a 50% chance of decreasing to $90. The risk-free rate of interest is 11%. Calculate the call option’s value using the two-state stock price model. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
In: Finance
You are attempting to value a call option with an exercise price of $109 and one year to expiration. The underlying stock pays no dividends, its current price is $109, and you believe it has a 50% chance of increasing to $139 and a 50% chance of decreasing to $79. The risk-free rate of interest is 10%. Calculate the call option's value using the two-state stock price model. (Do not round intermediate calculations and round your final answer to 2 decimal places.)
In: Finance
Following are terms relating to inventory concepts and procedures along with descriptions of those terms.
Match each term, 1 through 14, with the best description a through n.
| Terms | Description of Terms | |
|---|---|---|
| Answerabcdefghijklmn | 1. Free on board shipping point | a. Requires each inventory item to be distinguishable from another |
| Answerabcdefghijklmn | 2. Free on board destination | b. Occurs when the seller of inventory agrees to buy back the inventory at set terms |
| Answerabcdefghijklmn | 3. Gross method—purchase discounts | c. Purchase discounts lost are treated as a finance charge |
| Answerabcdefghijklmn | 4. Net method-purchase discounts | d. Ownership passes when the seller transfers goods to carrier |
| Answerabcdefghijklmn | 5. Consignee | e. An average inventory cost is computed based upon an entire period |
| Answerabcdefghijklmn | 6. Consignor | f. Purchase discounts are only recorded if taken |
| Answerabcdefghijklmn | 7. Perpetual inventory system | g. Elimination of prior period’s inventory layer |
| Answerabcdefghijklmn | 8. Periodic inventory system | h. Owner of inventory held at a separate location |
| Answerabcdefghijklmn | 9. Specific Identification | i. Requires a physical count of inventory in order to determine COGS |
| Answerabcdefghijklmn | 10. Average Cost method | j. Requires average inventory calculations throughout the period |
| Answerabcdefghijklmn | 11. Moving Average method | k. Measures the difference between inventory valued at FIFO vs. LIFO |
| Answerabcdefghijklmn | 12. Repurchase agreement | l. Ownership passes when the buyer receives goods from carrier |
| Answerabcdefghijklmn | 13. LIFO reserve | m. Requires a physical inventory to verify inventory balances |
| Answerabcdefghijklmn | 14. LIFO liquidation |
n. Acts as a sales agent to sell merchandise |
In: Accounting
You've discovered a new plant species in which yellow fruit color (Y) is dominant to green fruit color (y), and round fruit shape (R) is dominant to long fruit shape (r). The genes for fruit color and shape are located on the same chromosome and are 12 m.u. apart.
Determine the proportions of progeny of each phenotype produced for this cross.
Yr/yR x yr/yr
Reset
Help
0%
6%
12%
25%
44%
50%
75%
88%
100%
1. yellow, round:25%
2. yellow, long:25%
3. green, round:25%
4. green, long:25%
Incorrect; Try Again;
You filled in 4 of 4 blanks incorrectly. If two genes are 12 map units apart, recombination takes place 12% of the time, and it does not take place 88% of the time. With this in mind, gametes produced by the Yr/yR individual would not be produced in equal proportions.
In: Biology
y loading and unloading riders more efficiently. Two alternative loading/unloading methods have been proposed. To account for potential differences due to the type of ride and the possible interaction between the method of loading and unloading and the type of ride, a factorial experiment was designed. Use the following data to test for any significant effect due to the loading and unloading method, the type of ride, and interaction. Use a = .05. Factor A is method of loading and unloading; Factor B is the type of ride.
| Type of Ride | |||
| Roller Coaster | Screaming Demon | Long Flume | |
| Method 1 | 44 | 55 | 50 |
| 46 | 47 | 46 | |
| Method 2 | 46 | 47 | 49 |
| 48 | 43 | 45 | |
Set up the ANOVA table (to whole number, but -value to 2 decimals and value to 1 decimal, if necessary).
| Source of Variation | Sum of Squares | Degrees of Freedom | Mean Square | -value | |
| Factor A | |||||
| Factor B | |||||
| Interaction | |||||
| Error | |||||
| Total |
In: Statistics and Probability
Wildhorse, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the company $35 and are sold for $50. Glass pitchers cost $44 and are sold for $65. All other costs are fixed at $3,095,820 per year. Current sales plans call for 44,100 plastic pitchers and 132,300 glass pitchers to be sold in the coming year.
Wildhorse, Inc., has just received a sales catalog from a new supplier that is offering plastic pitchers for $33. What would be the new contribution margin per unit if managers switched to the new supplier?
|
Plastic pitchers |
Glass pitchers |
|||
| Contribution margin per unit | $ | $ |
What would be the new breakeven point if managers switched to the
new supplier? (Use contribution margin per unit to
calculate breakeven units. Round answers to 0 decimal places, e.g.
25,000.)
|
Plastic pitchers |
Glass pitchers |
|||
| Breakeven in Units |
In: Accounting