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miss Akunina [59]
4 years ago
7

The yield to maturity (YTM) on 1-year zero-coupon bonds is 5% and the YTM on 2-year zeros is 6%. The yield to maturity on 2-year

-maturity coupon bonds with coupon rates of 12% (paid annually) is 5.8%. What arbitrage opportunity is available for an investment banking firm?

Business
1 answer:
Molodets [167]4 years ago
8 0

Answer:

Please see attachment

Explanation:

Please see attachment

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Janelle has an art collection that she wants to sell. She calls Amber and tells her to sell the art collection for her at an upc
IgorC [24]

The correct answer is D) express authority.

Janelle has an art collection that she wants to sell. She calls Amber and tells her to sell the art collection for her at an upcoming auction. Although not specifically told to do so, Amber prints flyers and distributes them to all the art galleries in the area. Amber’s actions are an example of express authority.

Express authority means that an agent has the power to make decisions and act on behalf of another person. In this case, Janelle gave Amber the authority to act in the best interests of her art collection to be promoted by her agent, The authority could be granted orally or written. WIth that faculty, Amber is supposed to do everything to promote and sell Janelle's' art collection.

The other options of the question were A) apparent authority. B) respondeat superior. C) intermediary agency.

4 0
3 years ago
Kaplan, Inc. produces flash drives for computers, which it sells for $27 each. The variable cost to make each flash drive is $13
horsena [70]

Answer:

Contribution per unit

= Selling price - Variable cost per unit

 = $27 -$13

= $14

Contribution margin ratio

= Contribution per unit

  selling price

= $14

  $27

=  0.518518518

Break-even point in dollars

= $1,400

  0.518518518

= $2,700

               

Explanation:

Break-even point in dollars  equals fixed cost divided by contribution margin ratio. Contribution margin ratio is equal to contribution per unit divided by selling price. Contribution per unit is selling price minus variable cost per unit.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

4 0
4 years ago
In 1895, the first Putting Green Championship was held. The winner’s prize money was $170. In 2016, the winner’s check was $1,39
Gre4nikov [31]

Answer:

a. The percentage increase per year in the winner’s check over this period was 7,73%

b. The winners prize at 2046 will be $12,975,215,98

Explanation:

a.

\sqrt[(2016-1895)]{(1390000/170)}

\sqrt[121]{8176,47}

0.0772965

b.

FC=IC*(1+0,0773)^{30}

FC=1,390,000*(1+0,0773)^{30}

5 0
3 years ago
A country currently has an outstanding debt of $45 billion. Its current-year expenditures are $12 billion and its tax revenue is
zhannawk [14.2K]

Answer:

Answer is B

there will be budget surplus= 14-12= $2 billion

as we have surplus we can divert this amount to pay out the debt so debt will reduce by 2 billion and remaining debt will be of $ 43 billion

6 0
3 years ago
Read 2 more answers
You purchase one IBM July 120 call contract for a premium of $5. You hold the option until the expiration date when IBM stock se
QveST [7]

Answer:

$200 loss

Explanation:

Long call profit = Max [0, ($123 - $120)(100)] - $500 = -$200.

8 0
4 years ago
Read 2 more answers
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