The speaker’s split feelings reflected in the broken form of the sonnet in “Human Interest”

In “Human Interest” the speaker has split feelings about his dead girlfriend, which are reflected in the form of the poem. The reader can see feelings of love, regret and grief and on the contrary feelings of hate and anger. The break between those divided feelings is visible in the broken form of the sonnet.

The poem represents a broken form of the original Petrarchan sonnet. Firstly looking at the form of the poem the reader sees that there are 14 lines what indicates that he is looking at a sonnet. The rhyme scheme is identical with the typical rhyme scheme of the sonnet as abbaabba cdcdcd. Moreover there are 4 stanzas as in the sonnet, but the way the stanzas are constructed questions the thought of it being a typical one: In a sonnet there are 4 lines in the first stanza, 4 in the second and in each following stanza 3 lines. In “Human Interest” there is the scheme 4343. In other words there is an untypical break between line 7 and 8, the poem is punctiliously tore apart at that point.

In different parts of the poem it is visible that the speaker has divided feelings. His feelings are turning over from hate and anger to love, grief and regret. The former is for instance illustrated in ‘I slogged my guts out for her’ (line 5). That sentence creates the impression of the speaker reproaching his dead girlfriend. It shows his disappointment because it seems like nothing he had done for her would have been worth it, all he got was her unfaithfulness and cheating. The use of the strong word ´slogged´ reinforces that effect. To put it another way, it seems like he tries to legitimate his deed. In contrast to that aspect of legitimating his deed, the reader is able to see some expression of regret in line 12ff. where the speaker says ‘When I think about her now, I near choke / with grief.’. It shows that he suffers, he ‘near choke’ and how sad he is about...

...Understanding the Term Structure of Interest Rates
Prepared for Fundamentals of Financial Management
Distributed
October 24, 2005
TABLE OF CONTENTS
List of Figures....................... ....................................... .....................iii
List of Abbreviations and Symbols............................. ..........................iv
Summary............................................................................. ...................5
Introduction.......................................... .................................................7
Understanding the Term Structure of Interest Rates ............. ...............8
Term Structure Puzzle................................................................8
The Yield Curve .8
The Expectations Theory 9
Visual Aids..............................................................................10
Conclusions ......... .............................. .............11
LIST OF FIGURES
Figure 1: Expected Yield Curve When Inflation Is Expected to Increase ..4
Figure 2: Expected Yield Curve When Inflation Is Expected to...

...Question 2
You expect interest rates to decline over the next six months.
a. Given your interest outlook, state what kinds of bonds you want in your portfolio in terms of duration and explain your reasoning for this choice. (5 marks)
b. You must make a choice between the following three sets of noncallable bonds. For each set, select the bond that would be best for your portfolio given tour interest rate outlook and the consequent strategy set forth in part (a). In each case briefly discuss why you selected the bond. (15 marks)
| | |Maturity |Coupon |YTM |
|Set 1: |Bond A |15 years |10% |10% |
| |Bond B |15 years |6% |8% |
|Set 2: |Bond C |15 years |6% |10% |
| |Bond D |10 years |8% |10% |
|Set 3: |Bond E |12 years |12% |12% |
| |Bond F |15 years |12% |8% |
Question 3
At the present time, you expect...

...return on debt of a project/firm
Always true.
Never true.
Sometimes true.
Question 3
(10 points) Moogle, Inc. is in the same business as Google, Inc., but has recently retired all its debt to become an all-equity firm. Its return on equity has dropped from 12.25% to 10.60% as a result of this. Google, Inc. continues to have debt in its capital structure, and its debt-to-equity ratio is 30%. What is the return on assets of Google, Inc.(No more than two decimals in the percentageinterest rate, but do not enter the % sign.)
Answer for Question 3
Question 4
(10 points) Suppose CAPM holds, and the beta of the equity of your company is 2.00. The expected market risk premium (the difference between the expected market return and the risk-free rate) is 4.5% and the risk-free rate is 3.00%. Suppose the debt-to-equity ratio of your company is 20% and the market believes that the beta of your debt is 0.20. What is return on assets of your business? (No more than two decimals in the percentage interest rate, but do not enter the % sign.)
Answer for Question 4
Question 5
(10 points) You are planning on opening a consulting firm. You have projected yearly cash flows of $2 million starting next year (t = 1) with a growth rate of 3% over the foreseeable future thereafter. This endeavor will require a substantial investment and you will have to convince investors to provide you the capital to do so. You will invest some of your own money,...

...wins? If not, who loses?
Introduction:
Players: Morgan Bank, Rabobank, and B.F. Goodrich, Salomon Brothers, Thrift Institutions and Saving Banks
Goodrich:
In early 1983, Goodrich needed $50 million to fund its ongoing financial needs. However, Goodrich was reluctant to borrow (short term debt) from its committed bank lines because of the following reasons:
1. It would lose substantial about of its remaining short term capital availability under its bank lines.
2. It would compromise its future flexibility by borrowing in the short term.
Instead, it wanted to borrow for an 8 year range (or longer) at a fixed rate.
However, since the general level of interest rates were pretty high, and Goodrich’s credit ratings had dropped from BBB to BBB-. Goodrich believed that it would have to pay 13% interest for a 30 year corporate debenture.
Salomon Brothers had advised Goodrich that they could borrow in the US public debt market with a floating rate debt issue tied to the LIBOR, and then swap payments with Euro market bank that had raised funds in the fixed-rate Eurobond market.
Note: The reason that Salomon were confident that this could be done is described as follows:
1. There was a recent deregulation of deposit markets had allowed deposit institutions to offer new variable rate money market deposit accounts.
2. As result of these new offerings large thrift institutions
Rabobank:
Rabobank had AAA debt ratings, and...

...and Structure of Interest rates
P C Narayan
IIMB PCN BFMS L02
1
Loanable Funds theory
“Market interest Rate is
determined by the factors
that control the supply and
demand for loanable funds”
IIMB PCN BFMS L02
2
1
Demand for Loanable Funds
• Household demand for loanable funds
– As household income rises, so does installment debt
– Inverse relationship between demand for lonable funds
and interest rate
• Business demand for loanable funds
– Inverse relationship between demand for lonable funds
and interest rate
• Government demand for loanable funds
– Interest inelastic since borrowing to meet deficit
• Foreign demand for loanable funds
– Country A issues securities to investors of country B
• Total Demand for lonable funds Da =
Dh + Db + Dg + Df
IIMB PCN BFMS L02
3
Supply of Loanable Funds
• Household sector is the largest followed by
Government and Business (Sa)
• Directly proportional to interest rates
_______________________________________
In equilibrium, Da = Sa
• And the interest rate at this point is is known as
‘equilibrium interest rate’
• Change in demand or supply causes a change in
‘equilibrium interest rate’
IIMB PCN BFMS L02
4
2
Fisher Effect
• Offers an additional explanation to the loanable
funds theory
• Nominal Interest rate
– Compensates for reduced purchasing power
– Provides a premium for...

...
In this document of ECO 316 Week 2 Chapter 7 Risk Structure and Term Structure of Interest Rates you will find the answers on the next questions:
7.1 Multiple Choice Questions
1) The risk structure of interest rates refers to
2) Default risk arises from the fact that
3) If the average risk premium of corporate bonds increases,
4) Currently, a three-month Treasury bill pays 5% interest and a ten-year Treasury bond pays 4.7% interest. What is the risk premium of the typical A-rated corporate bond that pays 5.5% interest?
5) Currently, a three-year Treasury note pays 4.75%. Assuming that your tax rate is 20%, what is the minimum interest rate that you would you need to earn on a tax-free municipal bond in order to buy it instead?
6) When a company whose ability to repay its obligations in full is uncertain borrows funds
7) Default risk
8) Which of the following is considered a default-risk-free instrument?
9) U.S. Treasury securities
10) The default risk premium is measured
11) The default risk premium is
12) The default risk premium
13) Risk-neutral savers care
14) Savers generally are
15) Because savers are generally risk-averse
16) Savers who are risk-averse
17) Investors often pay professional analysts to gather and monitor information on the creditworthiness of borrowers because
18) Which of the...

...P 3–4: Just One, Inc.
Just One, Inc., has two mutually exclusive investment projects, P and Q, shown below. Suppose the market interest rate is 10 percent.
The ranking of projects differs, depending on the use of IRR or NPV measures. Which project should be selected? Why is the IRR ranking misleading?
Using the IRR method will result in project Q being selected over P due to its higher rate of return. Using the NPV method would result in choosing project P because of its higher NPV. When there are mutually exclusive project, NPV method would be preferred.
IRR is misleading because it ignores the absolute amount from the wealth of shareholders which may be increased when the project would be undertaken. It may also be misleading because IRR makes an assumption that interim cash flows are being reinvested at the same equal return rate.
P 3–10: Mr. Jones’s Retirement
Mr. Jones intends to retire in 20 years at the age of 65. As yet he has not provided for retirement in-come, and he wants to set up a periodic savings plan to do this. If he makes equal annual payments into a savings account that pays 4 percent interest per year, how large must his payments be to ensure that after retirement he will be able to draw $30,000 per year from this account until he is 80?
We first compute the present value at the end of the year when he is 65, when he will be required to make 15 annual payments of $30,000.
PMT | -$30,000 |
N | 15...

...COMPOUND INTEREST
Making or Spending Money
SIMPLE INTEREST FORMULA
If a principal of P dollars is borrowed for a
period of t years at a per annum interest rate
r, expressed as a decimal, then interest I
charged is
I Pr t
This interest is not used very often. Interest is
usually compounded which means interest
is charged or given on the interest and the
principal.
Simple Interest Example
COMPOUND INTEREST
Payment Periods:
Annually
Once per year
Semiannually
Twice per year
Quarterly
Four times per year
Monthly
Twelve times per year
Weekly
Fifty two times per year
Daily
365 (360 by banks) per year
COMPOUND INTEREST FORMULA
The amount A after t years due to a principal
P invested at an annual interest rate r
compounded n times per year is
r
A P 1
n
nt
A is commonly referred to as the
accumulated value or future value of the
account. P is called the present value.
COMPOUND INTEREST
Example:
Investing $1000 at an annual rate of 8%
compounded annually, quarterly, monthly,
and daily will yield the following amounts
after 1 year:
Annually
Quarterly
Monthly
Daily
COMPOUND INTEREST
On-line example
More on-line examples
COMPOUND INTEREST
Tutorial
Continuous Compounding
The
amount A after t...