ANSWERS TO QUESTIONS FOR CHAPTER 1 (Questions are in bold print followed by answers.) 2. What is meant by a mortgage-backed security? A mortgage-backed security is a security backed by one or more mortgage loans. Like a bond that is callable‚ a mortgage-backed security allows the investor to grant the borrower an option. 4. What is the cash flow of a 10-year bond that pays coupon interest semiannually‚ has a coupon rate of 7%‚ and has a par value of $100‚000? The principal or par
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old bond issue with a lower-interest cost issue if interest rates in the market decline. A call provision effectively allows the issuer to alter the maturity of a bond. The right to call an obligation is included in most loans and therefore in all securities created from such loans. This is because the borrower typically has the right to pay off a loan at any time‚ in whole or in part‚ prior to the stated maturity date of the loan.
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(which should be taken as the current date for all the questions below except for question 7) to derive the discount factors for cash flows to be received in 0.5‚ 1‚ 1.5 and 2 years. Bond Price 6.0s of 7/15/13 102-15+ 5.0s of 1/15/14 103-7 3/4 8.0s of 7/15/14 107-24 4.0s of 1/15/15 100-23 1/2 Answer: (a) To find d(0.5) The equation from the 6.0s of 15 July 2013‚ is (b) To find d(1.0) The equation from the 5.0s of 15 January 2014‚ is From part (a)‚ the
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ITC0299-1004A-01 Employee security awareness is let the employees of a company aware of the security of the company information such as data privacy of important information. This document is a guide that control directly support of the company security practice to safe guard information of the customers and company. Support‚ establish‚ and maintain the security and the internal control of the company. Will make and educate the security awareness which will help to plan an appropriate
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Deduction under section 33AB is allowable against composite income and not against only 40% of composite income- A case of un-necessary litigation by revenue in case of Tea Companies . Computation provision: Section 33AB is a provision relating to allowing deduction from business income. It falls under Part “D” of Chapter IV of the Income-tax Act‚ 1961. This part consists of various sections from section 28-44DB. As per section 29 the income referred to in section 28 shall be computed in accordance
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raw=Social%20Security%20Act Social Security Act 1. purpose? An act to provide for the general welfare by establishing a system of Federal old-age benefits‚ and by enabling the several States to make more adequate provision for aged persons‚ blind persons‚ dependent and crippled children‚ maternal and child welfare‚ public health‚ and the administration of their unemployment compensation laws; to establish a Social Security Board; to raise revenue‚ etc. On August 14‚ 1935‚ the Social Security Act established a system
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Prepares Employees for Retirement BY: MOGOMOTSI DINGALO STUDENT NUMBER: 626027 How the African Union Prepares Employees for Retirement . Introduction Upon retirement an ex employee may face uncertainty‚ depression‚ and other challenges such as insufficient income to pay debt owed‚ unpaid children’s school fees and bills and so on. The African Union Commission recently introduced workshop for employees due to retire in order to prepare them for life after retirement. The workshop covered
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Social Security Act of 1935‚ signed by Franklin D. Roosevelt‚ created a program that included social insurance programs‚ as well as public assistance. Both programs came about due to the depression and were created as part of the New Deal to benefit the citizens who needed assistance. While both programs were created to assist the public‚ each program had different eligibility requirements and accomplished different tasks. Social insurance programs were designed to provide continuing income to citizens
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Name: 李耀倫 Student No: 0809853A-B011-2996 Fixed Income Securities 1 7. A pension fund manager knows that the following liabilities must be satisfied: Years from Now Liability (in millions) |Years From Now |Liability (in millions) | |1 |$2.0 | |2
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Insurance Social Security Act The Social security act of 1935 was inducted after the stock market crash of 1929 and the great depression. The views of the populace changed enormously in politics‚ society‚ and the overall economic situations‚ at this time in our nation’s history. The social security act was separated into two main sections. One of these is social insurance‚ and the other is public assistance. As explained in the Social Welfare Policy book‚ the intention of the act was to “…respond
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