Answer:
t = 18 93 years
Explanation:
Given Data;
Yield to maturity (r) = 0.0843/2 = 0.04215
Current market price = $781.50
Bond = 6.1%
Face value = $1,000
Pv = (%bond * fv/2) * (1-1/(1+r)^2t)/r+fv/(1+r)^2t
Where pv is the current value, fv is the face value, t is the time and r is the yield
Substituting into the formula, we have
781.50 = (0.06*1000/2) * (1-1/(1+0.04215)^2t) /0.04215+ 1000/(1+0.04215)^2t
781.50 = 30.5 * (1 - 0.96^2t) /04215 + 959.55^2t
781.50 = 1.22^2t /0.04215 + 959.55^2t
After simplifying further,
t = 18 93 years
Answer:
Actually there are 5 problems related to NAFTA according to critics.
1) Mexico's farmers were put out of business, with free trade US exported agricultural products to mexico at low price. which in turns put local farmers out of business.
2) US jobs were lost, labour in mexico is cheap, so many companies moved their operations and factories to mexico for cheap labour. Which makes the US labour unemployed.
3) At US wages were suppressed, as many companies moved to Mexico other companies used this treat to pay labour low wages.
4) Mexico environment was highly affected, because of high competition local farmer used more fertilizers, fungicides and pesticides which affected their environment a lot.
5) Free US access to Mexican trucks, this was highly opposed by US local trucking companies as they will lose their business if mexican trucks were given free access to US. So, this point was rejected in 2008.
Answer:
a. You should short the contract to hedge the portfolio.
b. You should enter 19 contracts.
Explanation:
a) According to the given becuase we own portfolio ( underlying), we need to sell future contracts in order to hedge. So short the contract to hedge the portfolio.
b. To calculate how many contracts should you enter we would have to use the following formula:
number of contract required = (beta * portfolio value) / (beta of futures"Index value * multiplier)
Therefore, N = 0.7*10,000,000 / (1*1500*250) = 18.67 = 19 contracts
You should enter 19 contracts
The buyers' journey is the process buyers go through to become aware of, evaluate and purchase a new service or product. The journey is divided into three basic stages; which are awareness, consideration and decision stage. In the scenario described above, the buyer is not in any of the stages of the buyer journey.