A sports mortgage is the brainchild of Stadium Capital Financing Group, a company headquartered in Chicago, Illinois. It is an innovative way to finance cash-strapped sports programs by allowing fans to sign up to pay a "mortgage" over a certain number of years for the right to buy good seats at football games for several decades with season ticket prices locked in. The locked-in price period is 50 years in California. Assume you and your brother went to UCLA. Your brother, Harold, purchases a $40,000 mortgage and pays for it now to get season tickets for $290 each for 50 years, while you, being a three-time alumnus of the same university, are able to buy season tickets at $390 in year 1, with prices increasing by $20 per year for 50 years. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to this part. Which of you made the better deal at an interest rate of 8% per year? The present worth of Harold's investment is $- made the better deal. You and the present worth of your investment is $-

Economics Annual premiums are paid into a 3 year unit linked endowment policy where 98% of each premium is allocated to units in a fund that carries a 3% bid- offer spread and charges management fees of 0.75% of assets at the end of each policy year. The policy has a death benefit of the bid value of units payable at the end of the year of death subject to a minimum of £12,500. The survival benefit is the bid value of units at the end of the term. The life assurance company estimates that expenses are £95 per policy per year. (a) Produce projected revenue accounts for each year of a policy with an annual premium of £5,000 assuming the annual rate of mortality is 0.00498, an investment return of 6.9% per annum and an interest rate on cash balances of 3% per annum. (b) Does the life assurance company meet its internal profit margin objective of 5% on this policy if its risk discount rate is 5.5% per annum?

The present value of a $1000 discount bond with five years to maturity is $825. Calculate its yield-to-maturity. (Enter your answer in decimal form, up to three decimal places. Example: If your answer is 8.1%, enter it as 0.081) Answer:

Identify two (2) derivative investment products and how they allow investors to hedge against risk while creating unnecessary risk to the global economy.

A mortgage that requires a down payment of 5% of the purchase price of the house is called  a good deal. an "upside-down" loan a subprime loan a prime loan

Ryan and Rebecca have 30 years to retirement. They are taking a personal finance course and have calculated their projected retirement income and investment needs. Based on their calculations and taking into account their Social Security and pension incomes, they have a projected shortfall of $6,250.00 per year. Use the following tables to answer the questions about future value interest factors.     Interest Factors—Future Value Interest Factors—Future Value of an Annuity Excel Periods 3.00% 5.00% 6.00% 8.00% 9.00% 20 1.810 2.653 3.210 4.661 5.600 25 2.090 3.386 4.290 6.848 8.620 30 2.420 4.322 5.740 10.062 13.260 35 2.810 5.516 7.690 14.785 20.410 40 3.260 7.040 10.280 21.724 31.410           The impact of the inflation factor Continuing their worksheet, they consult a friend, economics professor Dr. Garcia, who believes that they can expect the average annual inflation rate to be 5%, possibly 6% tops. Complete the following table by…

A bond is a financial asset where the issuer is obliged to pay a bond holder interest at specified intervals (the coupon) and/or to repay the principal at a specified future date (the maturity date). pays a rate of return (interest) that fluctuates with market conditions. receives regular payments from the bond holder determined at a market rate at the time of payment. pays a higher rate of return (yield) as the price of the bond rises.

Mr. Jones is scheduled to retire on his 65th birthday. He was born January 1, 1946 and was hired by his present employer on January 1, 2001, with a starting salary of $50,000 per year. His employer makes contributions to a pension fund on the first day of January, April, July and October until he retires. Each contribution is 1% of his annual salary. The pension fund earns a nominal annual rate of interest of 8% compounded quarterly. Smith's salary is scheduled to increase by 8% every January 1 starting in 2002. The final employer contribution is on October 1, 2010. Find the value of Smith's pension fund on his 65th birthday.