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ECON 125 Measuring Inflation Using CPI
We measure inflation using the Consumer Price Index (CPI), but the CPI is an imperfect measure of prices because of three ...
ECON 125 Measuring Inflation Using CPI
We measure inflation using the Consumer Price Index (CPI), but the CPI is an imperfect measure of prices because of three problems. Identify those three problems and discuss whether they overstate or understate the level of inflation in the economy. In your discussion, analyze how by deviating from the “typical consumer” that the CPI attempts to track affects the problems in the CPI.
University of the Cumberlands Alternative Sources of Capital Discussion
A rapidly growing small firm does not have access to sufficient external financing to accommodate its planned growth. Disc ...
University of the Cumberlands Alternative Sources of Capital Discussion
A rapidly growing small firm does not have access to sufficient external financing to accommodate its planned growth. Discuss what alternatives the company can consider in order to implement its growth strategy.
How can the firm determine the cost of those alternative sources of capital?
Homework-economics
chapter 8:8-1 Widget MarketThe widget market is competitive and includes no transaction costs. Five suppliers are willing ...
Homework-economics
chapter 8:8-1 Widget MarketThe widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $30, $29, $20, $16, and $12. Five buyers are willing to buy one widget at the fol- lowing prices: $10, $12, $20, $24, and $29. What is the equilibrium price and quantity in a competitive market?8-3 Hand SanitizerDue to the H1N1 flu outbreak, the demand for hand sanitizer has tripled. Should Johnson & Johnson increase production of their Purell hand sanitizer? Should it invest in doubling production capacity?Note:1-you should use the book to answer all these questions (you should not use any additional sources) , I will give you the link of the book.2-you should not cheating from internet or other sources.3-Academic writing
University of Miami Expansion of the Monetary Base Questions
Issuer NameSymbolConvertible Coupon %Maturity DateCredit Rating - S&PList Price - Sale in $List Price - Yield in %Call ...
University of Miami Expansion of the Monetary Base Questions
Issuer NameSymbolConvertible Coupon %Maturity DateCredit Rating - S&PList Price - Sale in $List Price - Yield in %CallablePuttableSchwab Charles Corp NewSCHW4836967Yes3.255/22/2029A (Investment)110.361.793
Yes (02/22/2029)
100
NoExxon Mobil CorpXOM4218990No3.5673/6/2045AA- (Investment)108.463.055
Yes (09/06/2024)
100
NoApple Inc.AAPL4208639No3.452/9/2045AA+ (investment)111.772.767
Yes (Continuous)
100
NoRoyal Caribbean Cruises LtdRCL4568009No3.703/15/2028
B
(High Yield)
95.984.399
Yes (12/15/2027)
100
NoJP Morgan Chase & CoJPM4203227No3.1251/23/2025A- (Investment)107.270.89
Yes (10/23/2024)
100
NoCaterpillar Inc.CAT4884921No3.259/19/2049A (Investment)110.442.711
Yes (03/19/2049)
100
NoIntel CorpINTC4914060No3.2511/15/2049A+ (Investment)106.582.904
Yes (05/15/2049)
100
NoKey Bk Natl Assn OhioKEY.KONo3.1810/15/2027A- (Investment)102.062.533No
Yes
(04/14/2022)
100
Please review the eight bonds listed above. As the newly hired financial advisor at a money management firm, you have been asked to review the interest rate risk of the bond portfolio constructed above. You must construct an exchange recommendation report for the client.
In this exchange recommendation report, consider the interest rate risk of the current eight bond portfolio, as demonstrated by the Macaulay and average modified durations of the portfolio. Evaluate current market expectations for interest rate movements. Provide an analysis to the client regarding the likely gains or losses in the market value of this bond portfolio, based on your evaluation of current market expectations for interest rate movements. Finally, recommend one bond to remove from the portfolio, and exchange with another fixed income security, in order to lower the interest rate risk within the portfolio.
In your body of the paper,
1/ Use your bonds listed on the table above and calculate the Macaulay and modified durations for each bond. Show your calculations.
2/Choose two bonds and construct an equally weighted portfolio.
oDetermine the cash flow yield of this portfolio.
oDetermine the Macaulay duration of the portfolio using the weighted average of time-to-receipt of the aggregate cash flows method.
oDetermine the modified duration of this portfolio. Please see section 3.5 of Chapter 4 for an example.
3/Using all your bonds, construct an equally weighted portfolio.
oDetermine the average Macaulay duration of this portfolio using the weighted average of the individual bond durations that comprise the portfolio.
oDetermine the average modified duration of this portfolio using the weighted average approach.
oEstimate the percentage loss in the portfolio’s market value if the (annual) yield-to-maturity of each bond goes up by 25 basis points (bp), 50 bp, and 100 bp.
4/Research and review at least two articles about the current market expectations for interest rates, which have been published within the last six months. Based on these articles,
oSummarize your research and analysis, and describe whether this bond portfolio is likely to gain or lose market value in the next six months.
oEstimate how large this gain or loss might be.
oBased on this opinion, recommend one change to this bond portfolio to lower the interest rate risk of the portfolio. You may remove one bond and replace it with one bond currently available on the market. You must continue to have a total of eight bonds in the portfolio.
BUS 505 Westcliff University Game Theory Inside Oligopoly Discussion
“Question 1 & 2 should be separately (individually) answered “Question 1 - Discussion Question ( 3 pages required wit ...
BUS 505 Westcliff University Game Theory Inside Oligopoly Discussion
“Question 1 & 2 should be separately (individually) answered “Question 1 - Discussion Question ( 3 pages required with Conclusion & 3 reference papers) - GRAPHICAL REPRESENTATION REQUIREDModule 9Assignments to complete this week: Reading: Chapter 9: Basic Oligopoly Models (15 pages)Video:13. Oligopoly. (2020, July 16). [Video]. YouTube. Discussion QuestionCLO #6 - Explain how beliefs and strategic interaction shape optimal decisions in oligopoly environments.You are the manager of the only firm worldwide that specializes in exporting fish products to Japan. Your firm competes against a handful of Japanese firms that enjoy a significant first-mover advantage. Recently, one of your Japanese customers has called to inform you that the Japanese legislature is considering imposing a quota that would reduce the number of pounds of fish products you are permitted to ship to Japan each year. Your first instinct is to call the trade representative of your country to lobby against the import quota. Is following through with your first instinct necessarily the best decision? Why or why not? Question 2 - Activity ( 4 pages required with Conclusion & 6 reference papers)GRAPHICAL REPRESENTATION REQUIREDModule 10Reading: Chapter 10: Game Theory: Inside Oligopoly (19 pages)Video:Game Theory and Oligopoly: Crash Course Economics #26. (2016, March 6). [Video]. YouTube. Activity 5CLO #6 - Explain how beliefs and strategic interaction shape optimal decisions in oligopoly environments.Please analyze the following scenario by incorporating your learning from Chapters 9 & 10 of your textbook and answer the question: Coca-Cola and PepsiCo are the leading competitors in the market for cola products. In 1960 Coca-Cola introduced Sprite, which today is among the worldwide leaders in the lemon-lime soft drink market and ranks in the top 10 among all soft drinks worldwide. Prior to 1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime soft drink, PepsiCo would continue to earn a $200 million profit, and Coca-Cola would continue to earn a $300 million profit. Suppose that by introducing a new lemon-lime soft drink, one of two possible strategies could be pursued:PepsiCo could trigger a price war with Coca-Cola in both the lemon-lime and cola markets Coca-Cola could acquiesce and each firm maintains its current 50/50 split of the cola market and split the lemon-lime market 30/70 (PepsiCo/Coca-Cola). If PepsiCo introduced a lemon-lime soft drink and a price war resulted, both companies would earn profits of $100 million. Alternatively, Coca-Cola and PepsiCo would earn $275 million and $227 million, respectively.If PepsiCo introduced a lemon-lime soft drink and Coca-Cola acquiesced, they could split the markets.Please explain, as a manager at PepsiCo, If you were a manager at PepsiCo, would you try to convince your colleagues that introducing the new soft drink is the most profitable strategy by explaining the reasoning and theoretical analysis? Why or why not?(Chapter 10 - Problem 13 ).
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Most Popular Content
ECON 125 Measuring Inflation Using CPI
We measure inflation using the Consumer Price Index (CPI), but the CPI is an imperfect measure of prices because of three ...
ECON 125 Measuring Inflation Using CPI
We measure inflation using the Consumer Price Index (CPI), but the CPI is an imperfect measure of prices because of three problems. Identify those three problems and discuss whether they overstate or understate the level of inflation in the economy. In your discussion, analyze how by deviating from the “typical consumer” that the CPI attempts to track affects the problems in the CPI.
University of the Cumberlands Alternative Sources of Capital Discussion
A rapidly growing small firm does not have access to sufficient external financing to accommodate its planned growth. Disc ...
University of the Cumberlands Alternative Sources of Capital Discussion
A rapidly growing small firm does not have access to sufficient external financing to accommodate its planned growth. Discuss what alternatives the company can consider in order to implement its growth strategy.
How can the firm determine the cost of those alternative sources of capital?
Homework-economics
chapter 8:8-1 Widget MarketThe widget market is competitive and includes no transaction costs. Five suppliers are willing ...
Homework-economics
chapter 8:8-1 Widget MarketThe widget market is competitive and includes no transaction costs. Five suppliers are willing to sell one widget at the following prices: $30, $29, $20, $16, and $12. Five buyers are willing to buy one widget at the fol- lowing prices: $10, $12, $20, $24, and $29. What is the equilibrium price and quantity in a competitive market?8-3 Hand SanitizerDue to the H1N1 flu outbreak, the demand for hand sanitizer has tripled. Should Johnson & Johnson increase production of their Purell hand sanitizer? Should it invest in doubling production capacity?Note:1-you should use the book to answer all these questions (you should not use any additional sources) , I will give you the link of the book.2-you should not cheating from internet or other sources.3-Academic writing
University of Miami Expansion of the Monetary Base Questions
Issuer NameSymbolConvertible Coupon %Maturity DateCredit Rating - S&PList Price - Sale in $List Price - Yield in %Call ...
University of Miami Expansion of the Monetary Base Questions
Issuer NameSymbolConvertible Coupon %Maturity DateCredit Rating - S&PList Price - Sale in $List Price - Yield in %CallablePuttableSchwab Charles Corp NewSCHW4836967Yes3.255/22/2029A (Investment)110.361.793
Yes (02/22/2029)
100
NoExxon Mobil CorpXOM4218990No3.5673/6/2045AA- (Investment)108.463.055
Yes (09/06/2024)
100
NoApple Inc.AAPL4208639No3.452/9/2045AA+ (investment)111.772.767
Yes (Continuous)
100
NoRoyal Caribbean Cruises LtdRCL4568009No3.703/15/2028
B
(High Yield)
95.984.399
Yes (12/15/2027)
100
NoJP Morgan Chase & CoJPM4203227No3.1251/23/2025A- (Investment)107.270.89
Yes (10/23/2024)
100
NoCaterpillar Inc.CAT4884921No3.259/19/2049A (Investment)110.442.711
Yes (03/19/2049)
100
NoIntel CorpINTC4914060No3.2511/15/2049A+ (Investment)106.582.904
Yes (05/15/2049)
100
NoKey Bk Natl Assn OhioKEY.KONo3.1810/15/2027A- (Investment)102.062.533No
Yes
(04/14/2022)
100
Please review the eight bonds listed above. As the newly hired financial advisor at a money management firm, you have been asked to review the interest rate risk of the bond portfolio constructed above. You must construct an exchange recommendation report for the client.
In this exchange recommendation report, consider the interest rate risk of the current eight bond portfolio, as demonstrated by the Macaulay and average modified durations of the portfolio. Evaluate current market expectations for interest rate movements. Provide an analysis to the client regarding the likely gains or losses in the market value of this bond portfolio, based on your evaluation of current market expectations for interest rate movements. Finally, recommend one bond to remove from the portfolio, and exchange with another fixed income security, in order to lower the interest rate risk within the portfolio.
In your body of the paper,
1/ Use your bonds listed on the table above and calculate the Macaulay and modified durations for each bond. Show your calculations.
2/Choose two bonds and construct an equally weighted portfolio.
oDetermine the cash flow yield of this portfolio.
oDetermine the Macaulay duration of the portfolio using the weighted average of time-to-receipt of the aggregate cash flows method.
oDetermine the modified duration of this portfolio. Please see section 3.5 of Chapter 4 for an example.
3/Using all your bonds, construct an equally weighted portfolio.
oDetermine the average Macaulay duration of this portfolio using the weighted average of the individual bond durations that comprise the portfolio.
oDetermine the average modified duration of this portfolio using the weighted average approach.
oEstimate the percentage loss in the portfolio’s market value if the (annual) yield-to-maturity of each bond goes up by 25 basis points (bp), 50 bp, and 100 bp.
4/Research and review at least two articles about the current market expectations for interest rates, which have been published within the last six months. Based on these articles,
oSummarize your research and analysis, and describe whether this bond portfolio is likely to gain or lose market value in the next six months.
oEstimate how large this gain or loss might be.
oBased on this opinion, recommend one change to this bond portfolio to lower the interest rate risk of the portfolio. You may remove one bond and replace it with one bond currently available on the market. You must continue to have a total of eight bonds in the portfolio.
BUS 505 Westcliff University Game Theory Inside Oligopoly Discussion
“Question 1 & 2 should be separately (individually) answered “Question 1 - Discussion Question ( 3 pages required wit ...
BUS 505 Westcliff University Game Theory Inside Oligopoly Discussion
“Question 1 & 2 should be separately (individually) answered “Question 1 - Discussion Question ( 3 pages required with Conclusion & 3 reference papers) - GRAPHICAL REPRESENTATION REQUIREDModule 9Assignments to complete this week: Reading: Chapter 9: Basic Oligopoly Models (15 pages)Video:13. Oligopoly. (2020, July 16). [Video]. YouTube. Discussion QuestionCLO #6 - Explain how beliefs and strategic interaction shape optimal decisions in oligopoly environments.You are the manager of the only firm worldwide that specializes in exporting fish products to Japan. Your firm competes against a handful of Japanese firms that enjoy a significant first-mover advantage. Recently, one of your Japanese customers has called to inform you that the Japanese legislature is considering imposing a quota that would reduce the number of pounds of fish products you are permitted to ship to Japan each year. Your first instinct is to call the trade representative of your country to lobby against the import quota. Is following through with your first instinct necessarily the best decision? Why or why not? Question 2 - Activity ( 4 pages required with Conclusion & 6 reference papers)GRAPHICAL REPRESENTATION REQUIREDModule 10Reading: Chapter 10: Game Theory: Inside Oligopoly (19 pages)Video:Game Theory and Oligopoly: Crash Course Economics #26. (2016, March 6). [Video]. YouTube. Activity 5CLO #6 - Explain how beliefs and strategic interaction shape optimal decisions in oligopoly environments.Please analyze the following scenario by incorporating your learning from Chapters 9 & 10 of your textbook and answer the question: Coca-Cola and PepsiCo are the leading competitors in the market for cola products. In 1960 Coca-Cola introduced Sprite, which today is among the worldwide leaders in the lemon-lime soft drink market and ranks in the top 10 among all soft drinks worldwide. Prior to 1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime soft drink, PepsiCo would continue to earn a $200 million profit, and Coca-Cola would continue to earn a $300 million profit. Suppose that by introducing a new lemon-lime soft drink, one of two possible strategies could be pursued:PepsiCo could trigger a price war with Coca-Cola in both the lemon-lime and cola markets Coca-Cola could acquiesce and each firm maintains its current 50/50 split of the cola market and split the lemon-lime market 30/70 (PepsiCo/Coca-Cola). If PepsiCo introduced a lemon-lime soft drink and a price war resulted, both companies would earn profits of $100 million. Alternatively, Coca-Cola and PepsiCo would earn $275 million and $227 million, respectively.If PepsiCo introduced a lemon-lime soft drink and Coca-Cola acquiesced, they could split the markets.Please explain, as a manager at PepsiCo, If you were a manager at PepsiCo, would you try to convince your colleagues that introducing the new soft drink is the most profitable strategy by explaining the reasoning and theoretical analysis? Why or why not?(Chapter 10 - Problem 13 ).
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