the college education of your two children. They are two years apart in age; one will begin college 15 years from today and the other will begin 17 years from today. You estimate your children’s college expenses to be $21‚000 per year per child‚ payable at the end of each school year. The annual interest rate is 15%. Your deposits begin one year from today. You will make your last deposit when your oldest child enters college. (15 points) How much money must you deposit in an account to
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Cardinal Principles of lending: A bank is an institution which is primarily seen as a body that accepts monetary deposits from its customers (general public)‚ looks after their money‚ offer them some beneficial services such as cheque books to make payments and lends money to other public (borrowers). Now lending money to someone comes with some inherent risks especially when a bank uses its depositors’ money to lend. To put it simply a bank’s major operation is to borrow money from depositors and
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REVIEW QUESTIONS FOR TEST 1 (MULTIPLE CHOICE‚ SHORT ESSAY‚ FILL-IN-THE-BLANK ETC.) LECTURE 1 A. List the three basic forms of business organizations. PROPRIETORSHIP (about 75% of all businesses) - Ownership is by one person‚ who operates for his/her own profit. a) Strengths (1) Owner receives all profits and/losses (2) Low organizational costs (3) Single tax—individual (4) Independence (5) Secrecy b) Weaknesses: (1) Unlimited Liability (2) Limited fund-raising power
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particular and‚ more generally‚ around the world (e.g. depository institutions‚ contractual savings institutions and investment intermediaries) and explain their characteristics • explain which financial securities are traded on financial markets (bonds‚ notes‚ bills and stocks)‚ and explain their nature • discuss the various theories that attempt to explain the shape of the yield curve • explain the structure of financial markets in the USA and around the world (primary versus secondary markets
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CONTENTS 1. INVESTMENT BASICS....................................................................................................... 6 What is Investment?...................................................................................................................6 Why should one invest? .............................................................................................................6 When to start Investing?.....................................................................
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Exercise Solution – Day 8 1. Answer the following questions. 1A. What do the acronyms SDLC and DBLC mean‚ and what do they portray? SDLC = Systems Development Life Cycle (SDLC) DBLC = Database Life Cycle 1B. What is the relationship between the SDLC and the DBLC? The SDLC traces the history (life cycle) of an information system. The DBLC traces the history (life cycle) of a database system. Since we know that the database serves the information system‚ it
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source amongst the Indian companies in the recent times has been American Depository Receipts (ADR) and Global Depository Receipts (GDR). The Finance Ministry has projected inflows of $4.5 billion through the ADR/GDR/FCCB (Foreign Currency Convertible Bond) route during the current fiscal year. This chapter deals with the concept of ADR/GDR‚ the process involved in such issues and the recent changes made by the government in the regulations for ADR/GDR. ADR/GDR – The concept ADR/GDR are negotiable certificates
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Swinburne University of Technology Faculty of Business and Enterprise FIN20012: Financial Markets Student Guide Page 1 Section One: Course Outline Section Two: True and False Questions Section Three: Essay Type Questions SECTION ONE: COURSE OUTLINE 1. The Financial System 2. The Banking Sector 3. Non Banking Financial Institutions 4. The share market and the corporation 5. Corporations issuing equity in the share market 6. Investors in the share market 7. Forecasting share
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Limitations of the BSM in pricing Convertible Bonds The BSM offers a good framework to begin in valuing such an option. However‚ it must be noted that CBs often make use of options with American terms‚ which the original BSM is unable to price. Han and Wu (2003) suggest a modification of the BSM to
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securities transactions and lending transactions have a very small impact on Allison’s net cash flows from investing activities. c. The net cash flows from financing activities were unusually large in the current year because of the issuance of bonds payable and capital stock. These securities were issued to finance the modernization of the production facilities. In a typical year‚ financing activities include only short-term borrowing transactions and payments of dividends. 2. In Discussion Forum
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