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Ray Seo has $5,000 to invest in a small business venture. His partner has promised to pay him back $8,200 in five years. What is the return earned on this investment?
Assume the debt in the previous question is trading at 1,035. How can you earn a riskless profit from this situation (arbitrage)?
Largent Supplies Corp. has borrowed to invest in a project. The loan calls for a payment of $17,384 every month for three years. The lender quoted Largent a rate of 8.40 percent with monthly compoun
The bond has 5 years of remaining maturity, a $1,000 par value, and a 6% annual coupon. M&E's straight debt is currently trading to yield 5%. What is the minimum price of the bond?
Difference between private limited company and public limited company?
Explain carefully why the futures price of gold can be calculated from the spot price and other observable variables whereas the futures price of copper cannot.
Yoma Inc. is attempting to raise $5,000,000 in new equity with a rights offering. The subscription price will be $40 per share. The stock currently sells for $50 per share and there are 250,000 shar
He has two choices: either invest in a US corporate bond denominated in euros or in a French corporate bond with same maturity and coupon. Are the two bonds comparable?
Explain how the aggregate expenditure function shifts in response to changes when consumer confidence decreases and when higher taxes are imposed on business profits
You would like to begin (or increase) your savings for retirement. What types of retirement plans (401ks, IRAs, etc.) might be best for your personal situation?
On 01/03/2002, an investor buys $1 million US T-Bill with maturity date 06/27/2002 and discount yield 1.76% on the settlement date. What is the equivalent money-market yield?
Who bears the greatest risk of loss of value if a firm should fail?
An investor has a cash of $10,000,000 at disposal. He wants to invest in a bond with $1,000 nominal value and whose dirty price is equal to 107.457%. What is the number of bonds he will buy?
The higher the tax rate, the ________ the net underwriting cost on the new bond issue
What are the advantages and disadvantages to a taxpaying entity in issuing debt as opposed to equity?
Bond 4: issue date 08/21/95, coupon 4.5%, maturity date 08/21/00, short first coupon with regular value, redemption value 100%. Compute the future cash flows of each of these bonds.
In 1626 Peter Minuit, governor of the colony of New Netherland, bought the island of Manhattan from Indians paying with beads, cloth, and trinkets worth $24.
Construct a loan amortization schedule that shows the 5 payments of John's loan.
On 12/04/01, consider a fixed-coupon bond whose features are the following: What are the future cash flows delivered by this bond?
Discuss whether a bona fide loan can exist between related parties.
If you deposit $2,500 in a bank account that earns 8% annually on a continuously compounded basis, what will be the account balance in 7.14 years?
As reported by the Bureau of Labor Statistics, the CPI for 2004 was 189.7 (using a Base Year of 1983 = 100). The CPI for 2005 was 196.1. Based on this data, what was the inflation rate for 2005?
$40 million in new securities are added to the portfolio, increasing the duration of the portfolio to 12.5 years. What is the duration of the $40 million in new securities?
Calculate the duration of a $1,000 6% coupon bond with three years to maturity. Assume that all market interest rates are 7%.
35% was sold for $997, and the last 20% was sold for $996. What would be the weighted average price paid by a noncompetitive bid?