Answer:
a. $9,857.25
Explanation:
Price = Face value * (1 - Bid*Days/360)
Price = $10,000 * (1 - 5.71%*90/360)
Price = $10,000 * (1 - 5.71%*0.25)
Price = $10,000 * (1 - 0.014275)
Price = $10,000 * 0.985725
Price = $9,857.25
Answer,
World Bank and International Monetary Fund.
Explanation,
World Bank is an organization with 186 member countries.It provides monetary and technical support to developing countries.International Monetary Fund has 186 member countries .Its purpose is to promote financial responsibility,prevent and solve economic crises ,encourage growth.It halso helps to eradicate poverty by encouraging countries to adopt responsible economic policies.It lends money to developing countries and provide training such as banking regulations.
Answer:
Find attached question containing the cash flows under the purchasing option,note that the discount rate in the attached is 7.1% but the main question has 6.9%,hence I would make use of 6.9%
The present value of leasing option is lower,hence it is preferred.
Explanation:
The cash flows under the purchasing option is $39,200 now and $2000 each year for 5 years.
In determining the better of the two options we determine the present value of each option as follows:
leasing option=$10,100/(1+6.9%)^1+$10,100/(1+6.9%)^2+$10,100/(1+6.9%)^3+$10,100/(1+6.9%)^4+$10,100/(1+6.9%)^5=$ 41,523.11
Purchase option=$39,200+$2000/(1+6.9%)^1+$2000/(1+6.9%)^2+$2000/(1+6.9%)^3+$2000/(1+6.9%)^4+$2000/(1+6.9%)^5=$ 47,422.40
Answer: C) -0.5
Explanation:
So first we take down the information we where given;
lets say
x = 50
SO = 50
therefore
uSO = ( 50 * ( 1 + 0.1) = (50 * 1) = 55
dSO = ( 50 * ( 1 - 0.1) = (50 * 0.9) = 45
SO
Pd = (x - dS0) = 50 - 45 = 5
Pu = (x - uSO) = 50 - 55 = (-5) because its negative, its = 0
now to get the HEDGE RATIO
we say HEDGE RATIO = (Pu - Pd) / ( uSO - dSO)
HEDGE RATIO = ( 0 - 5) / ( 55 - 45)
HEDGE RATIO = -5 / 10
HEDGE RATIO = -0.5
You are willing to pay to purchase one share of this stock at $25.31, if you require a 10.5 percent rate of return. D1 = 1.79 * 1.032 = 1.847 r = .105 and g = .032 is the given in this question. We will most likely willing to pay to purchase one share of this stock at $25.31
