Interest rate risk refers to changes in the bond's   ___________ (coupon rate, credir rating, par value, or yield to maturity)  , whereby a decrease in that item causes bond values to _______________ (increase, decrease, remain constant, or vary randomly)

Stock A has a price of $60 per share and you own 360 shares. Stock B has a price of $250 per share and you own 65 shares.   What is the weighted average stock price in your portfolio? Round to 2 decimal places and do not include the dollar sign.

The demand D (in billions of £) for a bond with coupon rate 5% and face value FV = 1000, and two years to maturity as a function of its price P is D = 4000 − 2P. The supply in (billions of £)as a function of the price of the bond is S = 2P + 400. b)  Suppose that the yield to maturity of the bond is i = 0.05. What is the quantity demanded/supplied at this interest rate? What happens to the demand/supply of the bond as the interest rate increases? Explain why.  c)  What is the equilibrium interest rate?  d)  Suppose that the bond trades at premium. Is there excess demand or supply? Explain. e)  There is a business cycle contraction, so both supply and demand shifts. After the shift, the new demand curve is given by: D = 4000 + X − 2P , whereas the new supply curve is S = 2P + 200. For which values of X will the interest increase/decrease? Which values of X are in line with empirical data?   Please show all the steps and equations used to get to the answers.

49) If stock prices follow a random walk, it means that stock prices are just as likely to rise as to fall at any given time. True False

Fill in each statement with the appropriate capital investment analysis method: Payback, ARR, NPV, or IRR. Some statements may have more than one answer. a. نه ن ن ن نه b. C. d. e. is (are) more appropriate for long-term investments. highlights risky investments. shows the effect of the investment on the company's accrual-based income. is the interest rate that makes the NPV of an investment equal to zero. requires management to identify the discount rate when used.

Financial mathematics

Question 5 (5.5 points): Hedge May 20th: Producer plans to sell corn in early November. Currently the December corn futures are trading at $4.33. The expected basis is -$0.36. • Does the producer have a long or short cash position? (buy/sell) Dec corn futures at $4.33/bu. Nov. 10th: To hedge: The producer will What is the expected price? • The producer must (buy/sell) corn locally in the cash market at • • $4.18/bu. To offset their future position, they must $4.67/bu. What is the actual basis? What is the realized price for the producer? ○ Method 1: Method 2: о The hedge resulted in a realized price of (buy/sell) Dec futures at

Most ______ investments are not available to the general public. Money market mutual fund Closed-end fund Unit investment trust Hedge fund An order to the New York Stock Exchange to buy or sell at the best price available is called: A limit order A stop order A market order A GTC order.

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

Ex: Consider a discount bond that has a 1000 TL face value. Current price of the bond is 900 TL and the bond has two years to maturity. What is the yield to maturity for this bond?