Reference no: EM13751539
1. At present, 10-year Treasury Bonds are yielding 3.9% while a 10 year corporate bond is yielding 6.1%. If the liquidity-risk premium on the corporate bond is 0.7%, what is the corporate bonds default-risk premium? Note that the treasury security should have no default-risk premium and liquidity-risk premium. (Round to nearest decimal place)
2. At present, the real risk-free rate of interest is 1.4%, while inflation is expected to be 1.4% for the next two years. If a 2-year Treasury note yields 4.9%, what is the maturity-risk for this 2-year Treasury note? (Round to nearest decimal place)
3. What would you expect the nominal rate of interest to be if the real rate is 3.8% and the expected inflation rate is 7.4%? (Round to nearest decimal place)
4. You are considering investing money in Treasury bills and wondering what the real risk-free rate of interest is. Currently, Treasury bills are yielding 6.1% and the future inflation rate is expected to be 3.4% per year. Ignoring the cross product between the real rate of interest and the inflation rate, what is the real risk-free rate of interest? (Round to nearest decimal place)
5. You want to invest your savings of $29,000 in government securities for the next 2 years. Currently, you can invest either in a security that pays interest of 8.4% per year for the next 2 years or in a security that matures in 1 year but pays only 6.2% interest. If you make the latter choice, you would then reinvest your saving at the end of the first year for another year.
If you choose the 2-year security, the value of your savings after the second year will be what? (Round to nearest dollar)
|
Issuing an audit opinion for the company
: Auditors have come into a department as part of a company-wide audit prior to issuing an audit opinion for the company's financial reports.
|
|
Explore the cloud technology concept
: In a four to five page paper, address the following areas: Please explain how you will be utilizing technology to make your business more effective and efficient. Explore the cloud technology concept
|
|
Financial management for ordinary business
: We have discussed many times the distinctions between financial management for ordinary business and financial management for health care-based businesses.
|
|
How consumer surplus relates to values and costs
: Graph shows the market for high heels. The downward-sloping (blue) line represents demand, and the upward-sloping (orange) line represents supply. The market is perfectly competitive and currently in equilibrium at a price of $50 per pair.
|
|
Nominal rate of interest
: What would you expect the nominal rate of interest to be if the real rate is 3.8% and the expected inflation rate is 7.4%? (Round to nearest decimal place)
|
|
Write a technology roadmap
: Write a technology roadmap based on how you see the technology would evolve in the market
|
|
Define make-to-stock and make-to-order systems
: Compare and contrast between make-to-stock and make-to-order systems. In your comparison, why does each system require different types of contracts
|
|
Create website with ajax chat
: Need to create website with Ajax chat
|
|
Fundamental financial analysis
: Prepare an 8- to 10-page fundamental financial analysis (excluding appendices, title page, abstract, and references page) that will cover each of the following broad areas based on Ford's financial statements:
|