Answer:
961.88
Explanation:
First, examine whether the bond will be called if interest rate falls to 9%. The call price is
1,000 + 125 = 1,222. Bond price at 9% yield will be
$110/0.13 > call price of 846.15
Bond will be called. The price of the callable bond therefore is:
=+[.60(846.15)+.40(1125)]/1.11+110/1.11 =961.88
Answer:
The interviewer should structure the interview in a way that helps him find out:
- Whether the applicants hold parallel job positions in China, and if they do, whether those parallel positions conflict with corporate standards, and general federal law.
- Whether the applicants understand the basics of US ethical standards (and J.P. Morgan standards), and US law so that they have a general and reasonable idea of what actions are forbbiden under American codes.
- Whether the applicants itend to engage in financial transactions with Chinese officials, and whether the money that would be used would come from J.P. Morgan or not.
- This might sound overboard, but as the applicants come from a country that is known to engage in spying, intellectual property stealing, and general involvement with internal issues in other countries, the interviewer should try to ask probing questions to find out if the applicants are some sort of spies or not.
Answer:
D) $1120
Explanation:
The goods Sally purchase were $1440, and with the 25% discount, she would have paid $1080, because 25% of $1440 is $360. Since she returned 1/3, she would have only spent $720, because $1080/3 is also $360. $720+$400 from the beginning would be $1120
I would suppose that it is because the beef stock wouldn't take as long to cook if you cut it smaller.
Answer:
C) in swap transactions where the trader is attempting to minimize currency exposure, the actual spot and outright forward rates are often of no consequence.
Explanation:
Swap transactions occur with negotiations based on the profitability of two goods, in relation to the profitability related to the value of a currency of a given location. As the currency value of these two goods can vary significantly, the traders involved in this process always seek to minimize currency exposure, as well as real cash rates. This gives space for bank brokers to use shortened laces notation, where future price predictions are considered.
