Q.Capital Decimation Partners LLP just sold a CDS protecting $20,000,000 worth of bonds at a 500bps spread. What are the quarterly premium payments? A. $125,000 B. $250,000 C. $500,000 D. $750,000 E. $1,000,000

5. You are a fixed income trader at Goldman Sachs. You purchase $1,000,000 in face value of a bond with a price of 102.50 and accrued interest (per 100 face) of 0.75 from a customer. The bond has a modified duration of 3.75. Goldman owns $25,000,000 in face value of the most recently issued 5 year Treasury note on its balance sheet. It has a modified duration of 4.5, a price of 101.75 and accrued interest (per 100 face) of 0.30. Calculate the amount of face value of that Treasury security you need to sell to hedge the interest rate risk of the bond you just purchased. Round to the nearest thousand since bond trade in 1000 face value increments. $1,000,000 $843,000 $833,000 $1,186,000

. The following bond was quoted in The Wall Street Journal:Bonds:     Curr.yld.:      Vol:        Close:         Net chg:CVS             7.3            10          80.875         + 1.2Five bonds were purchased yesterday, and 5 bonds were purchased today. How much more did thefive bonds cost today? (Round your answer to the nearest cent.)Increased cost $

TI209 JADMANE BO Sources Trade and other payables Short-term borrowings Mortgage Long-term borrowings Share capital Retained earnings Amounts $200,000 250,000 500,000 250,000 300,000 800,000 The before-tax bank charges are 11.0% for the short-term borrowings, 10.0% for the long-term borrowings, and 10.5% on the mortgage. The shareholders expect to earn 16%. Assume that the company's income tax rate is 50%. 40% Questions financing 1. Calculate the company's after-tax cost of borrowing. 2. Calculate the company's weighted average cost of capital.

2. Assume that you went to your bank to buy ¥10 million. The bank quoted that you can buy ¥120 for $1. Based on this information, answer the following questions: (15 Points) a. Is this a direct quote or an indirect quote? b. If it is a direct quote, what is the indirect quote or if it is an indirect quote what is the direct quote? C. How much dollar you need to buy ¥10 million? U Direct 1/120 =.0083 # B1 = 1/120 C,33,333.33

1. If the quoted price of a corporate bond is “ 105”, that means the bond price is a. $105      b. $1050     c. $1105     d. $995 2. The present value of $1000 to be received in 5 years is — if the discount rate is 12.78% a. $368    b. $494     c. $548    d. $687 3. At what rate must $287.50 be compounded annually for it to grow to $$650.01 in 14 years? a. 6 percent   b. 5 percent    c. 7 percent    d. 8 percent