Given that the following Zero rate with semiannual compounding:< Zero rate(semi-annual)< Maturity (years) 0.50 1.0< 1.5 2.0< 5 5.250 5.5 67 (a) What are the rates with continuous compounding? (8 points)< (b) What is the forward rate expressed with continuous compounding and semi- annual compounding for the 6-month period beginning in 1.5 years? (4 points) (c) What is the value of an FRA that promises to pay 7% (compounded semi- annually) on a principal of $1 million for the 6-month started in 1.5 years? (8 points)<

7. Given the following marginal revenue functions, R' (Q) terms of R(0). Hint: Lets say u=1+Q Oa. R(Q) 40 11Q O b. R(Q)=R(0)+40 40(1+Q), find total revenue function in O c. R(Q) 40 +R(0) 11Q 40 O d. R(Q) R(0) +40 14Q O e. R(Q) +R(0) 1+Q

If two mutually exclusive alternatives have B/C ratios of 1.5 and 1.4 for the lower first-cost and higher first-cost alternatives, respectively: (a) The B/C ratio on the increment between them is greater than 1.4 (b) The B/C ratio on the increment between them is between 1.4 and 1.5 (c) The B/C ratio on the increment between them is less than 1.4 (d) The lower-cost alternative is the better one

SHOW YOUR WORK IN THE SPACES PROVIDED BELOW FOR FULL CREDIT.   1) Understanding Normal Distribution (2p)   a. Which normal curve has a greater mean?   b. Which normal curve has a greater standard deviation?

• Use the below information to fill out the income statement and answer the questions 4-10 below: Selling Price per Unit Number of Units Total Dollars Sales Revenue $40.00 Variable Costs |600,000 Contribution Margin Fixed Costs 240,000 Net Income If OPEARATING LEVERAGE is 5 4. What is Net Income ?

Define each of the following terms: d. Modified internal rate of return (MIRR) method

How do you calculate the value at a node in a binomial tree? A. As a present value of the two possible values from the next period В. Average of the present value of the possible values from the next period OC. Sum of the present values of the two possible values from the next period D. Average of the future values of the two possible values from the next period

In performing horizontal analysis, why is it important to look at both the amount and the percentage change?

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Which of the following describes the behavior of the fixed cost per unit? a.remains constant with changes in production b.decreases with decreasing production c.decreases with increasing production d.increases with increasing production