Answer:
Experts are tested by Chegg as specialists in their subject area. We review their content and use your feedback to keep the quality high. Transcribed image text: If the required reserve ratio is 10 percent, the banking system currently has excess reserves equal to: $10 billion.
Explanation:
Answer:
if the stock price is between $44.25 and $55.75
Explanation:
Given that, the investor net gain on premium from option is $1.25 + $4.5 = $5.75.
Thus, the investor has to buy at $50 and obligation to sell at $50 in August.
Hence, investor paid-off is shown as x, of Hug-Packing in August as below:
Spot price <$50: 5.75 - (50 - x) = x - 44.25
Spot price = $50: $5.75
Spot price > $50 : 5.75 - ( x -50) = 55.75 - x
Thus, the strategy will pay off only when:
(x - 44.25) > 0 and (55.75 - x) <0 or x is between $44.25 and $55.75.
Present value of obligation is: 10,300(Cumulative PVF at 8% for two years)=10,300*1.783=$18,367.63
Duration of obligation is 1.4808 years.
The duration of a zero-coupon bond is 1.4808 years would immunize the obligation. $18,367.63(1.08)1.4808=$20,584.82.
If interest obligation increases to 9%, the value of the bond would be $18,118.65 and it changed by $0.19, the same is for if it falls to seven percent.
Hope this helps, now you know the answer and how to do it. HAVE A BLESSED AND WONDERFUL DAY! As well as a great rest of Black History Month! :-)
- Cutiepatutie ☺❀❤
Answer:
joint tenancy
Explanation:
The question does not specify if Max and Heather are married, it only tells us that their heirs can inherit the estate. If they were married, generally joint tenancy is automatic, which means that both own the property. But joint tenancy can also happen if people aren't married. Maybe they are friends who decided to buy a beach house together, and they both own it and have the right to use it.
Answer:
Explanation:
Cost of Capital 12%
Project X
Year 0 1 2 3 4
Cah flow (10000) 6500 3000 3000 1000
Discount Factor 12% 1 0.8929 0.7972 0.7118 0.6355
Present Value (10000) 5804 2392 2135 636
Net Present Value 2.85 years
Net Present Value 966
Discount Factor 10% 1 0.9091 0.8264 0.7513 0.6830
Present Value (10000) 5909 2479 2254 683
Net Present Value 1325
IRR = Lower rate + 
( higher rate - lower rate)
IRR = 0.10 + 
(0.12-0.10) = 17.38%
Project Y
Year 0 1 2 3 4
Cash flow (10000) 3000 3000 3000 3000
Discount Factor 1 0.8929 0.7972 0.7118 0.6355
Present Value (10000) 2679 2392 2135 1907
Payback Above 4 years
Net Present Value (888)
Discount Factor 10% 1 0.9091 0.8264 0.7513 0.6830
Present Value (10000) 2727 2479 2254 2049
Net Present Value (490)
IRR = Lower rate + ( higher rate - lower rate)
IRR = 0.10 + 
(0.12-0.10) = 7.54%
