You are offered a T-note that pays $1‚000 in 9 months (or 270 days) for $910. You have $910 in a bank that pays a 5% nominal rate‚ with 365 daily compounding. You plan to leave the money in the bank if you don’t buy the risk-free T-note. Which investment should you choose? Use the following all three solution methods to verify your answer. Greatest future wealth: FV Figure out FV of $910 left in a bank with 9 months‚ and then compare with T-note’s FV=$1‚000 Inputs: N = 270‚ I/Y =5%/365=0.0137%
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UNIVERSITY OF TEXAS AT DALLAS SCHOOL OF MANAGEMENT FIN6310: INVESTMENT MANAGEMENT SOLUTIONS TO PROBLEM SET #1 PROF. ARZU OZOGUZ SPRING 2013 1. Calculate the value of the following two bonds. Assume that coupon payments are made semi-annually and that par value is $1‚000 for both bonds. Coupon rate Time to maturity Yield-to-maturity Bond A 5% 5 yrs 7.2% Bond B 5% 25 yrs 7.2% Recalculate the bonds’ values if the yield to maturity changes to 9.4%. Which bond is more sensitive to the changes in
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Johnson Vietnam War New president Lyndon B. Johnson inherited a difficult situation in Vietnam‚ as the South Vietnamese government was in shambles and the Viet Cong was making large gains in rural areas of the South. Although Johnson billed himself as a tough anti-Communist‚ he pledged to honor Kennedy’s limited troop commitments in Vietnam. The ensuing political instability in South Vietnam persuaded Lyndon B. Johnson and Secretary of Defense Robert McNamara to further increase U.S. military and
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MATHEMATICS OF INVESTMENT Simple Interest If you borrow a car from a car rental company or if you live in someone else’s house or apartment‚ you have to pay rent. Like paying rent for the use of a car or a house‚ you also have to pay rent for the money you borrowed. This is called interest. People like Marco earn by charging interest on loans. Banks earn most of their income from the interest that people pay for the amounts they borrow. How much interest one has to pay depends on three factors:
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Brilliant‚ hidden‚ and mathematician are three words that describe Katherine Johnson. Many people believe that Katherine Johnson was just a smart woman at NASA‚ but she was so much more. As a well known mathematician for NASA‚ Katherine Johnson showed Americans that African American women are just as useful as white women. She left a lasting legacy as an extremely intelligent hidden figure. Katherine Johnson’s childhood was one of many contributing factors that helped her get to where she is
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Document reference No. • PRDC/2012-2013/MEIL/1811 Revision Index: Revision Description Date Remarks Based on the data collected during site visit. 0 Draft report 04.02.13 Project Team: Prepared by Mr. Harsha Vardhana BS Mr. Kiran Kumar S Mr. Jagannatha Gupta 04.02.13 Reviewed by 04.02.13 Approved by Mr. T.Gurucharan Das 04.02.13 Power Research and Development Consultants Pvt. Ltd. 1 Load flow Analysis – MEIL Feb-2013 EXECUTIVE SUMMARY 1.0 ONGC have established a 11 kV transmission line stated
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INVESTMENT DECISION Tianfu Electronics Ltd is a midsized electronics manufacturer located in Chengdu‚ China. The company president is Dr. Wang Datong‚ a graduate from Tsinghua University‚ who founded the company 20 years ago. The company originally repaired radios and other household appliances. Over the years‚ the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Meng Xiaolan‚ a recent MBA graduate from Fudan University‚ has been hired
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Although President Kennedy wasn’t in office for very long‚ his actions in and out of the whitehouse are legendary. When President Kennedy took the oath of office in 1960 he wasted no time in cleaning up America. Several bills were enacted in President Kennedy’s tenor. A lot of the major ones had to do with crime control. A lot of President Kennedy’s bills were targeted at organized crime. Bill S1653 was singed into action on September 13 1961. This was an interstate travel bill. The bill made it
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from homes to schools. Additionally‚ he proposes the solution for this issue that is to apply drama in school to make students aware of the sign of violence and how to react to these situation to protect themselves and prevent them from aggression. Johnson (2001) starts his article by giving the fact of child violence‚ which happens constantly in schools‚ on the street and even from homes. The author states that the main reason of this issue is the increase of aggressive behavior of young people. He
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FDI or foreign direct investment is defined as cross-border investment that is made by company or entity. FDI can be done in a number of ways such as merger or joint venture‚ acquiring shares or stocks from foreign companies‚ or setting up a subsidiary or new company overseas. Studies about foreign direct investment have been discovered since a long time ago and foreign direct investment is critically important to growth in any economy (Caves‚ 2007‚ Dunning and Lundan‚ 2008). There are several main
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