Bond P is a 12 percent coupon bond that is selling at a premium. Bond D is a 6 percent coupon bond currently selling at a discount. Both bonds make semi-annual payments, have a YTM of 9 percent and have 5 years to maturity.

a. What is the current yield for bond P?

b. What is the current yield for bond D?

c. Assume the YYM decreases to 8%. Which bond is more sensitive to changes in the market interest rate making the bond riskier? Show your work!

(fully solved, no excel or calculator shortcuts)

A company sends a satellite up to 4.0 Earth radii from the center of the Earth and then launches it at a speed of 7423 m/s. Their hope is that it will go into a circular orbit at that distance.

a) Can a satellite be in circular orbit at that distance and speed without using any kind of propulsion?

b) How fast should the satellite go in order to orbit at this distance? [...] they tell the satellite to fire a set of emergency rockets for 2.0 minutes, thereby correcting its speed.

c) What average angular acceleration do we see as the satellite changes its speed? (magnitude)

4. Describe the structure of musculoskeletal muscle. What are the skeletal muscle stem cells responsible for skeletal muscle regeneration after injury? Use this skeletal muscle stem cells as an example to describe changes of stem cells with aging (5 points)

5. Sexual reproduction is the formation of a new individual following the union of two gametes. Asexual cloning refers to reproduction without the fusion of gametes. Sexual reproduction or asexual cloning, which one is characterized by meiosis? Compare and state the advantage and disadvantage of sexual reproduction and asexual cloning. (5 points)

Kirchoff stated 2 laws concerning currents in an electrical circuit.
[1] One of these states that the sum of the potential changes (voltages) around any closed loop equals zero. What property of the electric potential at a point is the basis for this law?

[2] The other law states that the sum of currents entering a node must equal the sum of the currents leaving the node (or the sum of currents, with signs, at a node equals zero). (a) Given perfect conductors, what is the net charge at a node?

(b)What conservation law, when combined with (a), forms the basis for this second Kirchoff law?

It is January 2nd and senior management of Digby meets to determine their investment plan for the year. They decide to fully fund a plant and equipment purchase by issuing 75,000 shares of stock plus a new bond issue. Assume the stock can be issued at yesterday’s stock price ($37.29) and leverage changes to 2.7. Which of the following statements are true?

Select all that apply.

Select: 3

Total liabilities will be $142,817,628

Working capital will remain the same at $14,693,715

Total assets will rise to $223,510,034

Digby will issue stock totaling $2,796,750

The total investment for Digby will be $21,516,482

Essay 2

The Effect of International Financial Reporting Standards on Current Tax Planning Strategy

For this assignment, you will be submitting an essay on the effect the adoption of IFRS has had and will continue to have on tax planning strategy. While reporting under IFRS will not be required until 2015 or 2016, we are already beginning to see changes in the tax industry, particularly when considering planning for the future. The purpose of this assignment is for you to consider how and to what extent the adoption of IFRS in the United States will affect current tax planning strategy, both in the short-term and the long-term.

1. What is the space of analysis of the multiplier model? What is the significance of the 45 degree line in the Aggregate Production curve? Draw an aggregate production curve.

2. What are Aggregate Expenditures (AE)? Be sure to distinguish both autonomous and induced expenditures.

3. What is the slope of the Aggregate Expenditure function? What is its significance?

4. Show equilibrium in the Keynesian multiplier model. Identity the stability of equilibrium using the notion of unintended inventory changes.

5. Write the formula for the multiplier and identify the algebraic condition of the change in aggregate expenditure with respect to the change in real income.

There are two goods – c and p. The utility function is U (P,C) = P ^0.75 C ^0.25. $32 is allocated per week for the two goods, c and p.

1. The price of p is $ 4.00 each, while the price of c is $ 2.00 each. Solve for the optimal consumption bundle.
2. Suppose that the price for good p is now $ 2.00 each. Assuming nothing else changes, what is the new optimal consumption bundle.
3. Draw the appropriate diagram to show the results. Carefully explain the graphical representation of the fall in the price of p. Assume that both goods are normal goods.

Simulations with a general circulation model (GCM) have been used to

investigate the climate sensitivity to large changes in atmospheric ozone.

Explain qualitatively the results below.   

A simulation in which all O₃ above 30 km altitude is removed shows a large

tropospheric warming (+1-3^oC) and a very large stratospheric cooling (up to

-80^oC).

A simulation where all O₃ in the upper troposphere is removed shows a 1^oC

cooling of the Earth’s surface, while a simulation where the same amount of O₃ is

removed but in the lower troposphere shows no significant temperature change.