Which of the following bonds would you prefer to be buying? 8) _______ A) A $10‚000 face-value security with a 10 percent coupon selling for $9‚000 B) A $10‚000 face-value security with a 7 percent coupon selling for $10‚000 C) A $10‚000 face-value security with a 10 percent coupon selling for $10‚000 D) A $10‚000 face-value security with a 9 percent coupon selling for $10‚000 9) An equal increase in all bond interest rates 9) _______ A) has no effect on the returns to bonds
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1) The risk premium over and above the risk free rate consists of a number of components‚ including all of the following EXCEPT A) inflation risk. B) default risk. C) liquidity risk. D) tax treatment risk. 2) At any time‚ the slope of the yield curve is affected by A) liquidity preferences. B) inflationary expectations. C) the comparative equilibrium of supply and demand in the short-term and long-term market segments. D) all of
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P1-5 A) The front desk receptionist routinely takes an extra 20 minutes of lunch to run personal errands. Agency Problem: she took an extra 20 minutes to do her personal errands instead of working‚ which she puts her own self interests before the best interests of the company. Occurred cost: the salary that the company pays to her. The solution would depend on the boss on her work performance in the past. If she has an important personal errand to do during that time‚ then boss might need
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A discount bond has a coupon rate that is less that the bonds yield to maturity. The breakdown of U.S. Gross Domestic product into its major categories is usually as: Personal consumption‚ government purchases‚ gross private domestic investment‚ net exports. Major leading indicators: Money supply M2‚ consumer expectations‚ and stock prices S&P500 All are goals of monetary policy except: Stable prices‚ business stability‚ sustained economic growth‚ but NOT a balance in domestic payments. Fiscal
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Ryerson University CFIN300 Midterm Exam Fall 2007 There are 2.0 hours in this exam. Version A Student Name ____________________________ (Please Print) Student Number _________________________________ Notes: 1. This is a closed book exam. You may only have pens‚ pencils and a calculator at your desk. 2. A formula sheet is attached to the end of the exam. You may detach the formula sheet from the exam. Please fill out the
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C570: Strategic Marketing Management Cleopatra – Marketing Strategy Changes Team 3: 1. What are the most important possibilities for improving the results for the Cleopatra product in Canada? If Colgate-Palmolive wants Cleopatra to be successful in Canada‚ they need to make a few major changes to their strategy. As seen from the first assignment on segment attractiveness‚ the Canadian soap market has matured and the only way to grow is by drawing more market share from competitors
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Chapter 11 Liquidity and Reserves Management: Strategies and Policies 1. A(n) liquid asset is an asset which can be converted into cash easily‚ which has a relatively stable price and is reversible so that the seller can recover their original investment with little risk of loss. 2. When a financial institution sells assets to manage liquidity it faces opportunity costs. They lose the future earnings on those assets‚ they face transaction costs on those sales and the assets most easily
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ABSTRACT One of the most difficult marketing decisions facing companies is how much to spend on promotional schemes. John Wanamaker for a departmental store magazine‚ said‚ "I know that half of my advertising is wasted but I don’t know which half." Thus it is not surprising that industries and companies vary considerably in how much they spend on promotion. Promotional expenditures might amount to 30-50% of sales in case in cosmetics industry and only 10-20% in the industrial equipment industry
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kids to buy Sun Chips. • Contest: Sun Chips manufacturer can arrange a quiz contest for kids every week like give some questions answers and win gift hamper like sports kits or toys it will help to enhance the customer. • Coupons: Give coupons through newspaper collect coupons as much as can show it to the shopkeeper and get free Sun Chips. This kind of promotion can easily grab customer
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Type of Bonds Fixed rate bonds have a coupon that remains constant throughout the life of the bond. A variation are stepped-coupon bonds‚ whose coupon increases during the life of the bond. Zero-coupon bonds (zeros) pay no regular interest. They are issued at a substantial discount to par value‚ so that the interest is effectively rolled up to maturity (and usually taxed as such). The bondholder receives the full principal amount on the redemption date. High-yield bonds (junk bonds) are bonds
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