When long term rate is higher than short term rate, Expectation Theory explains this with which of following statement: 1) people expect rate to rise in future 2) long term rate carries interest rate risk premium A. 1 only B. 2 only C. both 1 and 2 If the interest rate risk premium is 25 basis point, and the short term rate is 3%, then this means that the long term interest rate is A. none above B. 2.75% C. 3.025% D. 2.075% E. 3.25% Consider a Zero coupon bond maturing in 2 months with annual YTM at 6%. The PV of this bond can be computed with semiannual approach by dividing the par value by a discount factor of with exponent of А. 3%;B 2/3 В. 3%;B 1/3 C. 6%; 2/3 D. 3%; 1/6

When long term rate is higher than short term rate, Expectation Theory explains this with which of following statement: 1) people expect rate to rise in future 2) long term rate carries interest rate risk premium A. 1 only B. 2 only C. both 1 and 2 If the interest rate risk premium is 25 basis point, and the short term rate is 3%, then this means that the long term interest rate is A. none above B. 2.75% C. 3.025% D. 2.075% E. 3.25% Consider a Zero coupon bond maturing in 2 months with annual YTM at 6%. The PV of this bond can be computed with semiannual approach by dividing the par value by a discount factor of with exponent of А. 3%;B 2/3 В. 3%;B 1/3 C. 6%; 2/3 D. 3%; 1/6

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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1 . A n d r e i S a n t o s p u r c h a s e d a c o n d o m i n i u m 4 y e a r s a g o f o r P 3 , 6 0 0 ,0 0 0 . 0 0 , p a y i n g P 3 7 , 5 0 0 . 0 0 p e r m o n t h o n h e r P 2 , 0 0 0 , 0 0 0 . 0 0 , 8 % , 2 5 - y e a r m o r t g a g e . T h e c u r r e n t l o a n b a l a n c e i s P 1 , 5 2 4 , 0 1 0 . 0 0 . r e c e n t ly , i n t e r e s t r a t e s d r o p p e d s h a r p l y , c au s i n g A n d r e i t o c o n s i d e r r e f i n a n c i n g h e r c o n d o a t t h e p r e v a i l i n g r a t e o f 6 % . H e e x p e c t s t o r e m a i n i n t h e c o n d o f o r a t l e a s t 4 m o r e y e a r s a n d h a s f o u n d a l e n d e r t h a t w i l l m a k e a 6 % , 2 1 - y e a r , P 1 , 5 2 4 , 0 1 0 . 0 0 l o a n , r e q u i r i n g m o n t h l y p a y m e n t s o f P 1 0 , 6 5 0 . 0 0 . a l t h o u g h t h e r e is…
D1.
Handerson Corporation makes a product with the following standard costs: Standard Quantity or Hours 9.2 kilos Direct materials Direct labor. 0.4 hours Variable overhead 0.4 hours The company reported the following results concerning this product in August Actual output Raw materials used in production Purchases of raw materials. Actual direct labor-hours Actual cost of raw materials purchases Actual direct labor cost Actual variable overhead cost Multiple Choice Standard Price or Rate $ 6.70 per kilo $ 27.00 per hour $ 6.70 per hour 3,900 units 29,730 kilos 32,300 kilos 1,130 hours $ 202,920 $ 23,436 $ 8,240 The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased. The variable overhead rate variance for August is:
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Q7
un.3
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which one is correct please confirm? QUESTION 19 The present value of a single payment can be represented as _____. a. None of these are correct b. PV0 = FVn ÷ (PVIFi,n) c. PV0 = FVn [1/(1 + i)n] d. PV0 = FVn(PVIFAi,n)
1 . S u p p o s e t h a t s o m e o n e s t o l e y o u r A T M c a r d a n d w i t h d r e w P 5 0 , 0 0 0 . 0 0 f r o m y o u r c h e c k i n g a c c o u n t . H o w m u c h m o n e y c o u l d y o u l o s e i f y o u r e p o r t e d t h e s t o l e n c a r d t o t h e b a n k : a ) T h e d a y t h e c a r d w a s st o l e n b ) 6 d a y s a f t e r t h e t h e f t c ) 7 5 d a y s a f t e r r e c e i v i n g y o u r p e r i o d i c s t a t e m e n t 2 . Y o u ' r e g e t t i n g m a r r i e d a n d a r e u n h a p p y w i t h y o u r p r e s e n t b a n k . D i s c u s s y o u r s t r a t e g y f o r c h o o s i n g a n e w b a n k a n d o p e n i n g a n a c c o u n t . C o n s i d e r t h e f a c t o r s t h a t a r e i m p o r t a n t t o y o u i n s e l e c t i n g a b a n k - s u c h a s t h e t y p e a n d o w n…
Calculate: 1 1 (1+ r)" х 30 where r=0.093, and n=16

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