In late September 2016, the US Treasury issued three T-Bills, and they had issued a one-year T-Bill on September 15, 2016:

1. Calculate the bank discount rate for each security using the formula given in the chapter (=(FV – Price)/FV * 360/M, where M is the number of days until maturity) and using the DISC function.
2. Calculate the bond equivalent yield for each security using the formula given in the chapter (=(FV – Price)/Price * 365/M, where M is the number of days until maturity) and using the YieldDisc function.

a) What is the Bank Discount Rate (rounded to 4 decimals) for the 52-week security?

b) Using the DISC formula, do you get the same answer as the Bank Discount Rate?

c) What is the Bond Equivalent Yield for the 26-week security?

d) Using the YieldDisc function, do you get the same answer as the Bond Equivalent Yield?

Thank you in advance

A light fixture contains five lightbulbs. The lifetime of each bulb is exponentially distributed with mean 205 hours. Whenever a bulb burns out, it is replaced. Let T be the time of the first bulb replacement. Let XiXi , i = 1, . . . , 5, be the lifetimes of the five bulbs. Assume the lifetimes of the bulbs are independent.

1-Find P( X1X1  > 100).

2-Find P( X1X1 > 100 and   X2X2 > 100 and • • • and   X5X5 > 100).

One of P&G's bonds is an annual pay, fixed-coupon bond with a 5% coupon rate, and 15 years left to maturity. If the bond is sold at 123% of par value, What is yield to maturity of the bond? Note that the price is % of par value. For example, 120% suggests, $1,200 price $1,000 par value bond (or $120 price for $100 par value).

P&G has semiannual coupon bonds with a 5% coupon rate and 12 years remaining to maturity. The bonds are selling for 70% of par value. What is the (Annual) Yield of maturity of the bonds? Note that the price is % of par value. For example, 120% suggest $1,200 price of $1,000 par value (or $120 price for $100 par value)

Consider the following options on Goldman Sachs’ stock with current price of $120. Assume you have enough money in your brokerage account to cover the margin required to write calls and puts.

Type Exercise price Option premium per share

Call $115 $9.20

Put $120 $4.50

Call $125 $3.70

a) How much is required (or received) UP FRONT if you buy 100 shares of calls with $115 exercise price, sell 200 shares of puts with $120 exercise price, and sell 100 shares of calls with $125 exercise price? b) What would be your net profit or loss for your portfolio in (a) if the stock price is $118 at maturity date?

Consider the following options on Goldman Sachs’ stock with current price of $120. Assume you have enough money in your brokerage account to cover the margin required to write calls and puts.

Type Exercise price Option premium per share

Call $115 $9.20

Put $120 $4.50

Call $125 $3.70

a) How much is required (or received) UP FRONT if you buy 100 shares of calls with $115 exercise price, sell 200 shares of puts with $120 exercise price, and sell 100 shares of calls with $125 exercise price? b) What would be your net profit or loss for your portfolio in (a) if the stock price is $118 at maturity date?

1. Fill in the blank. The real GDP for a given year values current year output at _____ year prices.

Group of answer choices

base

current

2. Which of the following values for the GDP deflator would imply that the price level is higher in the current year than in the base year?

90

110

100

3. Which of the following values for the GDP deflator would imply that the price level in the current year equals the price level in the base year?

90

110

100

Calculate the stock price given the following :

Trading EBITDA Multiple= 10x

Book equity= $1.0 Billion

Shares Outstanding= 110 million

Short Term Bank debt= $100 Million

Long Term Bank debt= $1.15 billion

Corporate Bons- $250 Million

Total liabilities= $1.9 Billion

Total Assets= $2.9 Billion

Cash=$ 100 Million

EBIT= $300 Million

Depreciation & Amortization = $50 Million

Whats the stock price?

Calculate the EV with stock price at $25.

The 1-week call options on the Alibaba stock with strike prices of $185, $190, and $195 are $10, $7, and $5.5, respectively. An investor longs a butterfly spread using these three options. Specifically, he longs 100 call options with the strike price $185, shorts 200 call options with the strike price $190, and longs 100 call options with the strike price 195. What is the investor's maximum gain from this strategy? Please provide your answer in unit of dollars

Suppose that Dom began a landscaping business in 2020. In that year, he adopted the last-in first-out (LIFO) inventory-flow method for his business inventory of shrubbery by using it for the year on his tax return.

In 2019, he purchased the following four batches of shrubs (total cost per batch below).

   Shrubs         Purchase Date        Direct Cost         Other Inventoriable Costs      Total Cost
      200               July 21                 $ 2,000              $ 200                                $ 2,200

      150              August 15              $ 2,000              $ 100                                $ 2,100
      100             October 30              $ 2,200              $ 400                                $ 2,600
      140            November 10            $ 2,700              $ 100                                $ 2,800

In 2020, Dom sold 200 shrubs. In 2021, Dom purchased three more batches of shrubs at the following total cost per batch below. Just before year end in 2021, he also sold 50 shrubs:

                       Shrubs             Purchase Date               Total Cost
                        100                 Early spring                   $ 2,400
                        125                    Summer                      $ 2,500
                        100                        Fall                         $ 2,600

a.     (10 points) What cost of goods sold and ending inventory would Dom record if he elects to use the LIFO method in 2020?

b.    (10 points) What will be his cost of goods sold and ending inventory in 2021 under the LIFO method?

c.     (10 points) How would you answer (a) change if Dom had initially selected the first-in, first-out (FIFO) method instead of LIFO?

d.    (10 points) How would you answer (b) change if Dom had initially selected the first-in, first-out (FIFO) method instead of LIFO?

1.In doing the calculations, round to two decimal places.

Given the following currency exchange rates:

Time period 1: AUD$ 1.15/CHF

Time period 2: AUD$ 1.55/CHF

a.From time period 1 to time period 2, CHF has depreciated or appreciated relative to AUD$.

A)depreciated B)appreciated

b.From time period 1 to time period 2, AUD$ has appreciated or appreciasted relative to CHF.

A)depreciated B)appreciated

c.In time period 1, if the price of Product A was CHF 39,500, then its price in AUD$ should be:

A)AUD$ 34,365

B)AUD$ 45,425

C) CHF AUD$ 34,365

D)CHF AUD$ 45,425

d.In time period 2, if the price of Product A was CHF 39,500, then its price in AUD$ should be:

A)AUD$ 25,675

B)AUD$ 61,225

C)CHF AUD$ 25,675

D)CHF AUD$ 61,225

e.In time period 1, if the price of Product B was AUD$ 65,000, then its price in CHF should be:

A)CHF 56,550

B)CHF 74,750

C)AUD$ CHF 56,550

D)AUD$ CHF 74,750

f.In time period 2, if the price of Product B was AUD$ 65,000, then its price in CHF should be:

A)CHF 42,250

B)CHF 100,750

C)AUD$ 42,250

D) AUD$ CHF 100,750

g.This year, a company has a sales revenue increase from last year, that means:

A)its profits have also increased.

B)its profits have decreased.

C)not enough information is given to know whether profits have increased or decreased.

2a. Relative to another currency, the value of US$:

A)can increase by more than 100% or decrease by more than 100%.

B)can increase by more than 100%, but cannot decrease by more than 100%.

C)can increase by not more than 100%, or decrease by more than 100%.

2b.When U.S. companies market their goods and services in developing nations that have a much lower level of per-capita income, they should always lower their price in these nations.

A)True B)False