A company must make payments of $10 annually in the form of a 10- year annuity- immediate. It plans to buy two zero coupon bonds to fund these payments. The first bond matures in 2 years and the second bond matures in 9 years, and both are purchased to yield 10% effective. What face amount of each bond should the company buy in order to be immunized from small changes in the interest rate (redington immunization)?

To keep either weak or strong sustainability, we can do something. Given the two cases, 1) a carbon tax imposed on primary production (supply side, firms) and 2) a carbon tax imposed on end-users (demand side, consumers),

• What kind of benefits that we can expect from each case?
• For instance, what would be the behavioral changes in producers and consumers?
• Which one is more cost-efficient?

As marginal utility decreases, total utility

On January 9, 2015, President Obama announced a proposal to make community college free for all students. What would be the benefit to the economy as a whole resulting from this change? Of the four factors of production (land, labor, capital, and entrepreneurship), which factor would be enhanced by such a program? What would happen to the supply of college-educated labor? Would the demand for college-educated workers change? If so, what changes might occur?

describe an IT or similar business project you have done or are currently doing. In your discussion, provide information on the following:

1.  What is that project? Provide complete description. Consider using PPM.

2.  What was the scoop, deliverable, and results of the project?

3.  What constraints did you experience and how did you handle them?

4.  If you had to do the same project again, what changes will you recommend?

Question 3

Suppose Thailand is experiencing a severe drought and economic recession. Explain the possible impacts on the equilibrium price and quantity of pineapples in Thailand with diagrams.

Question 6

Suppose the Hong Kong government is going to impose a binding price floor on video games. Use a diagram to indicate and explain the changes in the selling price and quantity transacted of video games. Will all existing sellers of video games be better off? Explain.

1. Imagine France and the US are exclusive trading partners. French people can only use Euros while Americans can only use dollars. What happens to the exchange rate of either euros or dollars with the following changes? Explain carefully in a paragraph or two:
   1. US exporting industries become more productive.
   2. The French government doubles the money supply.
   3. The US government decides to increase their tariffs on delicious French Cheeses

assume the spot exchange rate for euros is 1.0949 (that is $1.0949 will purchase €1). If the risk free interest rate for US dollars is 1.451%, the risk free interest rate for euro area is -0.250% and the standard deviation of changes in the exchange rate is 0.1126.

6a. What is the price of a 3-month put option on euros with a strike price of 1.1965?

b. What is the price of a 3-month put option on euros with a strike price of 1.0985?

1. Differentiate between (a) the equity method, (b) the initial value method and (c) the partial equity methods with core assumptions and with supported illustrations?
(Make you own assumption to support your illustrations)

2. With reference to IAS 21 The Effects of Changes in Foreign Exchange Rates compare and contrast between the two translation methods (a) temporal method exchange rate and (b) current rate method exchange rate with supported illustrations?