From the question, we are informed that an investor wishes to buy a new issue of U.S. Government agency bonds and was recommend that the customer purchase Federal Home Loan Bank bonds with a 20 year maturity.

It should be noted that new issues that relate to agency securities are typically sold by a selling group which will be appointed by the agency and such groups are usually made up of broker dealers and large banks.

The group will then sell the issue to the public at par and out of the revenue that is made, a selling concession will be paid by the agency to the selling group.

8 0

3 years ago

Suppose a local hardware store has explicit costs of $2 million per year and implicit costs of $44,000 per year. If the store ea

Korolek [52]

Answer: $94,000

Explanation:

7 0

3 years ago

Calculate the 4-day moving average for the following data (Remember that

Hatshy [7]

Answer:

116 . 100. 560 . 58

257 . 1100. 342 . 186

5 0

3 years ago

You are considering a project with projected annual cash inflows of $32,200, $41,800, $22,900 for the next three years, respecti

mestny [16]

Answer:

The value of the project today is $75,866

Explanation:

Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.

Years 1 2 3

Cash Flows $32200 $41800 $22,900

Discount Factor 14% 0.8772 0.7695 0.6750

Present Values $28,245.61 $32,163.74 $15,456.85

Net present value = $75,866.20

7 0

4 years ago