Imagine you are a bank manager. Currently, your bank holds $8 million in deposits at a 4% interest rate. However, you need to increase the total deposits to $10 million. The interest rate elasticity of savings is 2.40. What interest rate should you offer to depositors to obtain the required amount, all other things being equal?

A five-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the end of each year. a) What is the bond’s price? b) What is the bond’s duration? c) Use the duration to calculate the effect on the bond’s price of a 0.2% decrease in its yield. d) Recalculate the bond’s price on the basis of a 10.8% per annum yield and verify that the result is in agreement with your answer to (c).

What is a fiduciary duty? Identify three reasons that fulfilling fiduciary duty can be difficult in the investment profession. (Max 200 words)

What is the effect of a tax on interest​ income?

Dana was dating Wade, a wealthy real estate entrepreneur. Wade was much older than Dana and knew he needed to offer something “special” to make her stay. Wade told Dana that if she continued dating him, he would pay her $10,000 a month. Wade paid Dana for two years when suddenly, for no apparent reason, he stopped the monthly payments. Dana stayed with Wade for another six months, but decided enough was enough and left. She wanted the $60,000 she was owed for the six months; Wade refused to pay her. Is Dana entitled to the $60,000?

Suppose that you never carry cash. Your paycheck of $1,000 per month is deposited directly into your checking account, and you spend your money at a constant rate so that at the end of each month your checking account balance is zero.               a.What is your average money balance during the pay period?               b.How would each of the following changes affect your average monthly balance?                             i.You are paid $500 twice monthly rather than $1,000 each month.                             ii.You are uncertain about your total spending each month.                             iii.You spend a lot in the beginning of the month (e.g., for rent) and little at the end of the month.                             iv.Your monthly income increases.

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

Banks with excellent credit can borrow from the Federal Reserve. Multiple Choice O $1,000,000 per year $1,000,000 per day ) only an amount equal to their deposits an unlimited amount

Match the following Plastic Options with the correct descriptions

Diane initially deposited $10,500 into a money market account and made no additional deposits or withdrawals. When she closed the account in exactly one year, its value had grown to $10,900. Calculate the annual growth rate for the money market account. Round your answer to two places after the decimal.