An insurance company accepts an obligation to pay $7,000 at the end year 1, pay $8,000 at the end of year 2, and pay $9,600 at the end of year 3. The insurance company purchases a combination of the following three bonds in order to exactly match its obligation.

• Bond 1: 1-year 6% annual coupon bond with yield rate of 8%.

• Bond 2: 2-year zero coupon bond with yield rate of 7%.

• Bond 3: 3-year 20% annual coupon bond with yield rate of 12%.

(a) What face amount of each bond should the insurance company buy to do this?

(b) What price should the insurance company pay for the 3-year bond?

Please show detailed steps, and please don't use excel. I want to understand this.

A local graphic design company had purchased a large-scale printer 10 years ago for $180,000. The operations manager conducted a replacement study last year and she found that the current printer could be used for 4 more years before it is replaced. After two years, the owner of the company requested to repeat the replacement study for the printer. The current value for the printer is $22,000 but in order to keep it in service, a sensor should be replaced at a cost of $52,000 to be used for two more years. It is found that the current printer has an annual maintenance & operating cost of $18,000. The other option for the company is to purchase a new largescale printer with a total AW cost of $70,000 per year over 7 years the Economic Life Service. Determine when the printer should be replaced using an interest rate of 10%. work it in excel

Question 1 : Below are the processing costs of Duraseal Products observed over the last 10 months: Use the high low method to determine the variable cost per unit and fixed cost per month. Express your results in the form of a linear equation y = a + bx. Month Units Produced Processing Cost 1 9,900 74,000 2 8,200 63,000 3 7,600 61,000 4 7,800 62,000 5 9,000 65,000 6 6,000 60,000 7 8,300 60,000 We assume the linear relation is Y=a + bX High-Low method Units Produced Processing Cost High point Low point Slope Round to two decimal places b Intercept: a Assume the units level in August is 9600. 9600 The process cost will be Y Round to two decimal places

If sample was lost during the heating process, would the mass of water lost be too high or too low? Would this experimental error result in a value of n that is too large or too small?

If some water remained at the end of the heating process, would the calculated mass of water lost be too high or too low? Would this experimental error result in a value of n that is too large or too small?

**BY HAND** For the Data Below, please do the following:

State the null and alternative hypotheses. (2 points)

Construct an ANOVA table (20 pts)

Determine whether your results are significant (1 points)

Do a post hoc analysis (using Tukey’s HSD), if necessary (5 points)

State your conclusions in one or two sentences. (2 points)

A survey was done in a community in which residents were asked if they felt that family planning counseling was needed in the community. The tabulation in the accompanying table gives the opinions and the number of children of the respondents. Determine whether there is a difference in mean number of children of respondents. Make sure you follow all the steps of hypothesis testing.

Table 1. Number of children among respondents, by perceived need for family planning counseling in the community

An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 12% annual coupon. Bond L matures in 20 years, while Bond S matures in 1 year.

1. What will the value of the Bond L be if the going interest rate is 7%, 8%, and 13%? Assume that only one more interest payment is to be made on Bond S at its maturity and that 20 more payments are to be made on Bond L. Round your answers to the nearest cent.

   	7%	8%	13%
   Bond L	$	$	$
   Bond S	$	$	$

2. Why does the longer-term bond’s price vary more than the price of the shorter-term bond when interest rates change?
   1. Long-term bonds have lower interest rate risk than do short-term bonds.
   2. Long-term bonds have lower reinvestment rate risk than do short-term bonds.
   3. The change in price due to a change in the required rate of return increases as a bond's maturity decreases.
   4. Long-term bonds have greater interest rate risk than do short-term bonds.
   5. The change in price due to a change in the required rate of return decreases as a bond's maturity increases.

10.

An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 12% annual coupon. Bond L matures in 17 years, while Bond S matures in 1 year.

1. What will the value of the Bond L be if the going interest rate is 7%, 8%, and 13%? Assume that only one more interest payment is to be made on Bond S at its maturity and that 17 more payments are to be made on Bond L. Round your answers to the nearest cent.

   	7%	8%	13%
   Bond L	$	$	$
   Bond S	$	$	$

2. Why does the longer-term bond’s price vary more than the price of the shorter-term bond when interest rates change?
   1. Long-term bonds have greater interest rate risk than do short-term bonds.
   2. The change in price due to a change in the required rate of return decreases as a bond's maturity increases.
   3. Long-term bonds have lower interest rate risk than do short-term bonds.
   4. Long-term bonds have lower reinvestment rate risk than do short-term bonds.
   5. The change in price due to a change in the required rate of return increases as a bond's maturity decreases.

Question 6 (1 point)

Which ONE of the following statements about the payback method is true?

Question 6 options:

Question 7 (1 point)

McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $847,500, and $1,215,000 over the next three years. What is the payback period for this project? Round to four decimal places.

Your Answer:

Question 7 options:

Question 8 (1 point)

Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?

Year Project

0 ($11,368,000)

1 $ 2,157,589

2 $ 3,787,552

3 $  3,125,650

4 $ 4,115,899

5 $ 4,556,424

Round to two decimal places.

Your Answer:

Question 8 options:

13. Primary consumers are also known as

A. carnivores.    B. scavengers    C. decomposers.    D. herbivores.    E. top carnivores

14. In a food chain, each step of a food chain sees:

A. 10% of the energy passed on to the next step while 90% is lost as heat

B. 90% of the energy passed on to the next step while 10% is lost as heat  

C. 50% of the energy passed on to the next step while 50% is lost as heat  

D. 100% of the energy passed on to the next step    

E. none of the above is correct, we have no way of knowing how much energy is transferred

15. Living vegetation (trees and other plants) and the ocean are known as “carbon sinks” because

A. they are made of carbon.   B. they create carbon.

C. they destroy carbon.           D. they store carbon.

E. due to gravity, carbon is found closer to the ground.

16.The Tragedy of the Commons is a concept that attempts to explain:

A)how human nature leads to environmental degradation

B)how National Parks are doomed to failure due to lack of governmental support

C)how the average/"common" person is uneducated about environmental issues
D)how common wildlife species are often the first to become endangered rather than the exotic species

E)none of the above really expresses what Garret Hardin meant by this phrase