Question 4: There is a bond that pays $100 per year interest, with a $1,000 par value. It matures in 15 years. The market required yield to maturity on a comparable bond is 12%.

1. What is the value of the bond?
2. How does the value change if the yield to maturity on a comparable bond increase to 15%? What if it decreases to 8%.
3. Explain the above questions (part b) with the concepts of interest rate risk, premium bonds and discount bonds.
4. Recalculate the answer in b, with the assumption that the bond matures in 5 years (instead of 15 years).
5. Explain the above questions (part d) with the concepts of interest rate risk, premium bonds and discount bonds.

1. How is the transfer to another university going after the second year? what are the requirements? how to enter the budget?

The financial report of Allgreen Ltd, a company incorporated in Singapore, for the year ended 31 December 2018, contained the following disclosure: Foreign currency – Effective 1 January 2019, the Malaysian Ringgit became the functional currency for translating the financial statements of Allgreen’s 59% owned Malaysian subsidiary Allgreen Sendirian Berhad. Economic factors and circumstances related to Allgreen Sendirian Berhad’s operations have changed significantly since the last quarter of 2018. It is deemed that Allgreen Sendirian Berhad is now an independent and relatively self-contained subsidiary. Under these circumstances, these changes require a change in Allgreen Sendirian Berhad’s functional currency from the Singapore dollar to the Malaysian Ringgit. The Malaysian Ringgit has generally depreciated steadily over the past decade with respect to the Singapore dollar. As a result of the change, at 1 January 2019, Allgreen Ltd’s shareholders’ equity and minority interest accounts were reduced by $156 million and $108 million respectively. These amounts were driven principally by a reduction in fixed assets.

(a) Show why the change in functional currency reduced Allgreen Ltd’s fixed assets, shareholders’ equity and minority interest.

(b) Discuss how the change in functional currency affects each of the following, as reported in Allgreen Ltd’s financial statements:

(i) Sales

(ii) Cost of goods sold

(iii) Depreciation expense

An investor invests $11000. The investment pays $4000 at the end of year 1, $5000 at the end of year 2 and $4500 at the end of year 3. (a) Calculate the internal rate of return (IRR) of the investment. (b) Calculate the net present value (NPV) of the investment using interest preference rate of 8.5%.

Ans is 10.76% for (a)

Show all works, and please calculate it with math steps AND DON'T USE financial calculator!!your Answer should be in the form of math steps not in Statistic tables. Thank you!

The year-end net income (in millions) for a company for the years 2004-2015 are shown in the provided data set (incomedata.xlsx). Graph the best chart which effectively displays the income data over time.

Income Data:

In another study conducted in the same year (2015), the average monthly salary of residents in Bordeaux was found to be about €2353. And the standard deviation of the monthly salaries was €420.

In 2017, a study on the salary distribution of Paris residents was conducted. Assume that the salaries were normally distributed. A random sample of 10 salaries was selected and the data are listed below:

3200 3500 3000 2100 2950 2050 2440 3100 3500 2500

Question 8:

Assume that the standard deviation of the salaries was still the same as in 2015. Estimate the average salary (in 2017) with 95% confidence.

Question 9:

The assumption made in Question 8 was certainly unrealistic. Estimate the average salary (in 2017) with 95% confidence again assuming that the standard deviation had changed from 2015.

Question 10:

Estimate the variance of monthly salaries of Paris residents (in 2017) based on the sample provided above at a 95% confidence level.

Question 11:

How would you interpret the result in Question 10 above?

The following information pertains to the City of Williamson for 2017, its first year of legal existence. For convenience, assume that all transactions are for the general fund, which has three separate functions: general government, public safety, and health and sanitation.

Compensated absences (such as vacations and sick days) legally owed to general government workers at year-end total $13,000. These amounts will not be taken by the employees until so late in 2018 that the payment is not viewed as requiring 2017 current financial resources.

The city received a piece of art this year as a donation. It is valued at $14,000. It will be used for general government purposes. There are no eligibility requirements. The city chose not to capitalize this property.

The general government uses the storage shed that was acquired this year. It is being depreciated over 10 years using the straight-line method with no salvage value. The city uses the equipment for health and sanitation and depreciates it using the straight-line method over five years with no salvage value.

The investments are valued at $103,000 at the end of the year.

For the equipment that has been ordered but not yet received, the City Council (the highest decision-making body in the government) has voted to honor the commitment when the equipment is received.

1. a-1. Prepare a statement of activities for governmental activities for December 31, 2017.

2. a-2. Prepare a statement of net position for governmental activities for December 31, 2017.

3. b-1. Prepare a statement of revenues, expenditures, and other changes in fund balances for the general fund as of December 31, 2017. Assume that the city applies the consumption method.

4. b-2. Prepare a balance sheet for the general fund as of December 31, 2017. Assume that the city applies the consumption method.

In January of the current year, Don and Steve each invested $100,000 cash to form a corporation to conduct business as a retail golf equipment store. On January 5, they paid Bill, an attorney, to draft the corporate charter, file the necessary forms with the state, and write the bylaws. They leased a store building and began to acquire inventory, furniture, display equipment and office equipment in February. They hired a sales staff and clerical personnel in March and conducted training sessions during the month. They had a successful opening on April 1, and sales increased steadily throughout the summer. The weather turned cold in October, and all local golf courses closed by October 15, which resulted in a drastic decline in sales. Don and Steve expect business to be very good during the Christmas season and then to taper off significantly from January 1 through the end of February. The corporation accrued bonuses to Don and Steve on December 31, payable on April 15 of the following year. The corporation made timely estimated tax payments throughout the year. The corporation hired a bookkeeper in February, but he does not know much about taxation. Don and Steve have retrained you as a tax consultant and have asked you to identify the tax issues they should consider.