# Fish ink is a rollerblade manufacturing base in United States imports raw materials from…

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Fish ink is a rollerblade manufacturing base in United States imports raw materials from Thailand and Japan and exports finished products to Thailand. Fish conduct a consolidated net cash flow assessment and find that they have neg inflow in Thai Baht, And outflow in Japanese yen. Suppose it there has been a decrease correlation between Japanese Yen and the Thai Baht, fishes’ transaction exposure will _______.A. not changeB. decreaseC. increase

A demand loan for $10,084.95 with interest at 9.5% compounded semi-annually is repaid after 5 years, 5 months. What is

A demand loan for $10,084.95 with interest at 9.5% compounded semi-annually is repaid after 5 years, 5 months. What is the amount of interest paid?The amount of interest is (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

1.a. the ease with which an asset can be sold.b. the ability to sell an asset for a fair price.

1.a. the ease with which an asset can be sold.b. the ability to sell an asset for a fair price. Liquidity isSelect one:c. the degree of inflation protection an asset provides.d. the ease with which an asset can be sold and the ability to sell an asset for a fair price.e. All of the options are correct.2.An investor is environmentally conscious and is unwilling to invest in companies that negatively impact the environment. This represents a:Select one:a. liquidity constraintb. unique circumstancec. tax constraintd. cash flow requiremente. return objective3.Assume there is a fixed exchange rate between the Canadian and U.S. dollar. The expected return and standard deviation of return on the U.S. stock market are 18% and 15%, respectively. The expected return and standard deviation on the Canadian stock market are 13% and 20%, respectively. The covariance of returns between the U.S. and Canadian stock markets is 1.5%.If you invested 50% of your money in the Canadian stock market and 50% in the U.S. stock market, the expected return on your portfolio would be:Select one:a. 17.5%b. 12.5%c. 12.0%d. 15.5%e. 13.0%

1.2) A zero coupon bond with two years until maturity and a face value of $1000. A fund manager is

1.2) A zero coupon bond with two years until maturity and a face value of $1000. A fund manager is managing a bond portfolio against her client’s liabilities. The liability has a duration of 5 years and a market value of $200,000. The fund manager can immunize this liability using the following assets:1) A perpetuity that pays $100 per annum.The market yield for bonds of all maturities is 6% p.a. Calculate how many of the zero coupon bonds (rounded to the nearest whole number) the investor will buy.Select one:a. 17b. 67c. 40d. 23e. 1822.Which of the following transaction costs are likely to be the most significant for a large, institutional investor placing a multi-million dollar trade in a small-capitalisation stock?Select one:a. Price impact and bid-ask spreadb. Brokerage and price impactc. Brokerage and bid-ask spreadd. All transaction costs are equally significant3.Which of the following transaction costs is likely to be the most significant for a retail investor placing a $5000 trade in a large-capitalisation stock?Select one:a. Price impactb. Brokeragec. Bid-ask spreadd. All of the above

3 (a) Consider a 12-year, 6% corporate bond with face value $4,000. Assume that the bond pays semi-annual coupons.

Finance Assignment Writing ServiceQuestion 3 (a) Consider a 12-year, 6% corporate bond with face value $4,000. Assume that the bond pays semi-annual coupons. Compute the fair value of the bond today if the nominal yield-to-maturity is 10% compounded semi-annually. (b) One of the ways to value bonds issued by a corporation is to use the risk-neutral valuation model. Consider a 1-year zero-coupon bond issued by a pharmaceutical firm called Designer Drugs with a face value of $1,000 that is currently trading at $950.50. Suppose that if Designer Drugs defaults, the recovery rate of the bond is 65 percent. Assume that the annual risk-free interest rate is 3.5 percent. (i) Find the risk-neutral probability of default. (ii) Bloomberg just released news that a new drug to treat COVID-19 from Designer Drugs got approved by the government for large scale human testing. This event decreased the risk-neutral probability of default by 1 percent. In other words, if the probability of default was x percent in part (a), now it is going to be (x – 1) percent. At what price will the bond be trading after the news? (iii) In addition to the information given in part (b) above, assume now that the risk-free interest rate is decreased from 3.5 percent to 3.0 percent. Find the price of the bond.

5 Consider a stock that is trading at $100 a share. The annual volatility of the stock is 20

Question 5 Consider a stock that is trading at $100 a share. The annual volatility of the stock is 20 percent, and the 3-month nominal risk-free interest rate is 8 percent. (a) Find the value of a 3-month European call option on the stock with an exercise or strike price equal to $100. (b) Find the value of a 3-month European put option with an exercise price equal to $95. (c) Consider a derivative security that pays, in three months, the square of the stock price that will prevail in 3 months. In other words, this security will pay where denotes the stock price in 3 months. Find the value of this derivative security today.

2 Suppose that the 1-year effective risk-free interest rate is 3%. Consider a stock that pays annual dividends. The

Question 2 Suppose that the 1-year effective risk-free interest rate is 3%. Consider a stock that pays annual dividends. The stock is expected to pay a $2.0 dividends per share in one year. The dividends are expected to remain constant at $2.0 per share for the next four years (years 1, 2, 3

Fish ink is a rollerblade manufacturing base in United States imports raw materials from Thailand and Japan and exports finished

Fish ink is a rollerblade manufacturing base in United States imports raw materials from Thailand and Japan and exports finished products to Thailand. Fish conduct a consolidated net cash flow assessment and find that they have neg inflow in Thai Baht, And outflow in Japanese yen. Suppose it there has been a decrease correlation between Japanese Yen and the Thai Baht, fishes’ transaction exposure will _______.A. not changeB. decreaseC. increase

You are evaluating a project that will require an investment of $16 million that will be depreciated over a period

You are evaluating a project that will require an investment of $16 million that will be depreciated over a period of 20 years. You are concerned that the corporate tax rate will increase during the life of the project. a. Would this increase the accounting break-even point? -Yes -No b. Would it increase the Financial break-even point? -Yes -No

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