International Finance Problem Set #4 1. A. Fundamental-based Forecasting: Analyzing the future on the basis of fundamental relationships between economic variables and exchange rate. Fixed exchange rates: The forecasting is based on indicators of sustainability such as current account deficits or surpluses‚ relative inflation rates and black market exchange rates. Floating exchange rates: The forecasting is based on factors that could influence macro economy such as monetary policies and
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Bonds-1. Interest on a certain issue of bonds is paid annually with a coupon rate of 8%. The bonds have a par value of $1‚000. The yield to maturity is 9%. What is the current market piece of these bonds? The bonds will mature in 5 years. P= CPN x (1/y) {1-[1/(1+y)^n] + [FV/ (1+y)^n] CPN= 1000 x .08= 80 P= 80 (1/.09) {1- [1/(1.09)^5]} + [1000/(1.09)^5] = 73.39 (.351) + 649.35 = $675.11 Bonds-2. A certain bond has 12 years left to maturity. Interest is paid annually at a coupon rate of 10%. The bonds
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Analytical measurement: measurement uncertainty and statistics Ricardo Bettencourt da Silva‚ Ewa Bulska‚ Beata Godlewska-Żyłkiewicz‚ Martina Hedrich‚ Nineta Majcen‚ Bertil Magnusson‚ Snježana Marinčić‚ Ioannis Papadakis‚ Marina Patriarca‚ Emilia Vassileva‚ Philip Taylor Editors: Nineta Majcen‚ Vaidotas Gegevičius Joint Research Centre Analytical measurement: measurement uncertainty and statistics Editors: Nineta Majcen Vaidotas Gegevičius Authors: Ricardo Bettencourt da
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SOLUTIONS Financial Management Seminar + Homework‚ Week 5 1. Starware Software was founded last year to develop software for gaming applications. Initially‚ the founder invested $800‚000 and received 8 million shares of stock. Starware now needs to raise a second round of capital‚ and it has identified an interested venture capitalist. This venture capitalist will invest $1 million and wants to own 20% of the company after the investment is completed. a. How many shares must the venture capitalist
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Theory The first experiment focused on the concept of errors and uncertainties that are obtained during measurements. For an experiment to be successful‚ especially those that involve measurements‚ the number of significant figures must be known. Significant figures are the digits required to express a measured quantity and thus reflect the accuracy of the measurement. Uncertainty is defined as the smallest increment that can be measured and is defined by the instrument used. An error is defined
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assets and liabilities is assumed to represent goodwill (the unidentifiable intangible asset)‚ which is not amortized under current GAAP but is reviewed periodically for impairment. In contrast‚ identifiable intangible assets would be amortized if they have a definite life but not if the life is indefinite in duration. Thus‚ only if the $600‚000 pertained to an identifiable intangible asset with a finite life would amortization be required. We assume that is not the case here. 2011 Pearce
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Team: _______________________ AP Macro Problem Set #2 Unit 2: Measurement of Economic Performance 1. (_____/15) Article Analysis Read each of these current articles and identify three different concepts we learned that are mentioned. Define and summarize what is being said for each concept that you identify. a. GDP Article (_____/5) b. Unemployment Article (_____/5) c. Inflation Article (_____/5) 2. ( ____/15 Points) Gross Domestic Product a. Define GDP‚ identify what is not included‚ define the four components
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numbers are two examples. We could use the name of the merchandise or person equally well‚ but we choose numbers instead. The fact that the barcode for milk is higher than for razor blades (is it?)‚ or that your SSN is higher than mine ( is it?) tells us nothing. In surveys they often use arbitrary numbers to code variables such as religion‚ ethnicity‚ major in college or gender. In fact‚ with nominal variables measurement means: classifying cases in (unordered) groups. (A group can have a single member
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concerned at the extent of shoplifting in the store and has undertaken a piece of research which examines the problem. The research project has been written up as ’ Research About Shoplifting ’. You are asked to write a critical review of this research‚ which focuses particularly on the methodology of the study. Word Count 2798 The advancements made in Criminological and Social research and the astounding results have provided and continue to provide our modern society with answers about both crime
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4a) His income is €300‚ so his budget constraint is the line between y=30 and x=75. The optimal choice (utility-maximizing) is shown by the point of tangency with his utility function. This is point E (and x =30). b) The budget constraint shifts to x = 120. The new optimal choice is point C (and x = 35). c) ΔY∙py = (30-22‚5)∙10 = €75 d) The total effect: Point E C e) Income effect: F C Substitution effect: E F f) Income effect < 0‚ so X is an inferior good. 5a) U(x‚y) = x1x2
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