Which kind of online trade are the most common? Example:

Q: man borrows Php 5000 and promises to pay the compound amount at 9 % compounded quarterly at the end…

A: Simple interest is very simple and there is no compounding of interest and there is only interest on…

Q: onsider Bob's situation from the last two questions once again.   Now let's say Bob is trying to…

A: A financial commitment to an item or asset to create wealth is called an investment. When a person…

Q: An investor buys a T-bill at a bank discount quote of 4.79 with 95 days to maturity. What is the…

A: A T-Bill is a money market instrument that is backed by the government. A T- Bill pays no dividend…

Q: Why does the SEC require a statement of stockholders' equity to be included in a company's annual…

A: Financial statements are the ways a company represent itself to the outside world. Statement of…

Q: Consider an economy with three dates (t=0,1,2) and two safe bonds. Bond A has 2% coupon and Bond B…

A: The debt security known as a bond. To obtain funding from investors, borrowers issue bonds. It is a…

Q: The futures market counter negotiated is characterized contracts for del underlying security at a…

A: Future markets are contracts that are to be settled in the future time depending on the time and…

Q: Andre's Bakery has sales of $613,000 with costs of $479,000. Interest expense is $26,000 and…

A: The revenue that an entity earns after treating all the relevant expenses and losses indicates the…

Q: David owns a two-stock portfolio that invests in Falcon Freight Company (FF) and Pheasant…

A: Probability distribution of returns on two stocks have been provided. We need to find the expected…

Q: An investment will pay you $4000 each year for the next 8 years. The investment yields 6% APR,…

A: Step 1 Investors and financial advisers value the future value because it helps them determine how…

Q: Schultz Industries is considering the purchase of Arras Manufacturing. Arras is currently a supplier…

A: Firm Valuation: The process of determining the overall economic value of a company and its assets is…

Q: An investor buys a discount bond that pays him $65,000 after 6 years. The nominal interest rate for…

A: Yield to maturity is the return one gets for the risk of holding the bond for the said period.It is…

Q: Given the cash flows in actual dollars provided in the following table, calculate the present worth…

A: Present valueIn order to calculate the current value, it is necessary to make the assumption that…

Q: At time t = 0, a trader takes a long position in a futures contract on stock i that will expire at…

A: The equation describes the present value of a futures contract on stock i. The present value is…

Q: Consider a 20-year Government of Canada bond with a face value of $1,000 that has a coupon rate of…

A: A coupon payment is a regular payment made by a bond issuer to bondholders. The payment is a portion…

Q: The yield to maturity of a $1,000 bond with a 7.0% coupon rate, semi-annual coupons, and two years…

A: Issue price of bonds would be present value of interest annuity & maturity amount at market rate…

Q: The maintenance and operations costs for a piece of equipment are estimated to be $300 the first…

A: Uniform monthly payment means making a fixed payment amount every month. In the context of the…

Q: etna is offering customers who invest $10,000 with them today a payment of $1,500 every 1.5 years in…

A: Concept, first we will calculate the effective rate for the 1.5 year period which is nothing buy the…

Q: You have purchased a 10% coupon bond for $1,040. What will happen to the bond's price if market…

A: Bond valuation is the process of determining the fair value or market price of a bond. The value of…

Q: Assume that you are looking at three perpetuities. Perpetuity 1 (P₁) has annual cash flows of $850…

A: Step 1 A perpetuity is a type of investment that pays forever. In the world of finance, perpetuity…

Q: You just paid $570,000 for an annuity that will pay you and your heirs $14,000 a year forever. What…

A: The fixed regular periodic payment made is regarded as an annuity. The annuity is broadly classified…

Q: Healthy Body Hospital has a target capital structure of 35 percent debt and 65 percent equity. Its…

A: The cost of capital for a company, or in other words, the minimum return that a company must earn on…

Q: A 100,000 par value two-year 8 bond with semiannual coupons is bought to yield 10% convertible…

A: Convertible bond Bonds having embedded derivatives that permit the 'conversion' of the bond into…

Q: You take out a 10-year installment loan for $220,000 and will make 40 quarterly payments of…

A: Amortization Table A document that details the monthly loan payment amount is known as an…

Q: Calculate the value of the tenant's interest based upon a return of j, = 8%. Round your answer to…

A: Interest rate = 8% Monthly rate = 8%/12 = 0.6666667 Period = 15 years or 180 months Value of tenants…

Q: You plan to deposit $200 in a bank account now and $300 at the end of one year. If the account earns…

A: Future value is the expected monetary value of an investment or asset at a specified future date,…

Q: A hypothetical corporation, Cascade Strategic & Innovative Solutions, has decided to raise capital…

A: Right shares refer to the shares which are issued at a discounted price to its existing…

Q: Hamilton, Inc. bonds have a coupon rate of 11 percent. The interest is paid​ semiannually, and the…

A: Value of a bond or price of a bond is the present value of all future cash flows associated with the…

Q: All other things being equal, the numerical difference between a present and a future value…

A: The infusion of money into multiple alternatives available indicates an investment. An investor…

Q: Your company has a project available with the following cash flows: Year Cash Flow 0 1 2 3 30,400…

A:

Q: Zoe deposited $900 in a savings account at her bank. Her account will earn an annual simple interest…

A: Here, Principal “P” is $900 Simple rate "r" is 7% Number of years “t” are 13

Q: Kayeu Ltd is evaluating the investment in two new projects X and Y which would generate the…

A: Capital budgeting refers to the evaluation of projects or investments before accepting them. There…

Q: Perform a financial analysis for a project. Assume that the projected costs and benefits for this…

A: Data given: Estimated costs: Year 1 =$300,000   Years 2, 3, and 4=$ 75,000each year   Estimated…

Q: A certain state uses the following progressive tax rate for calculating individual income tax:…

A: We have to calculate the taxes based on the tax brackets until the complete salary of $70000.   So,…

Q: Suppose Zoe had deposited another $900 into a savings account at a second bank at the same time. The…

A: To calculate the amount of money Zoe will have in her savings account at the second bank in 13…

Q: Statue Builders, Inc. took out a loan for $251375 that has to be repaid in 8 equal annual…

A: annual payment which means annual compounded formula applied, borrower make the equal annual payment…

Q: 1. State 3 broad classifications of financial institutions 2. Discuss the concept of a trust company…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: Describe the Dow Jones Industrial Average. Why is it important?

A: A statistical tool for tracking changes in the financial markets is the stock market index. The…

Q: Required: 3. Net present value (NPV). (Future Value of $1. Present Value of $1. Future Value Annuity…

A: Please note that the answer might slightly vary as the factor tables are not provided in the…

Q: A project is expected to generate annual revenues of $120,900, with variable costs of $76,000, and…

A: Operating Cash Flow: It represents the amount of cash produced by the firm from its normal business…

Q: The sales literature of a mutual fund claims that the fund has no risk exposure since it invests…

A: Federal government securities consist of securities that are issued by the federal government.…

Q: Question II. a. For the cash flows shown, determine the rate of return. Year Expenses (S) Revenue…

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions…

Q: 62. The arithmetic average of -11%, 15%, and 20% is A. 15.67% B. 8% C. 11.22% D. 6.45% 63. Continue…

A: Formula to be used: Arithmetic average=X1+ X2+ .......+Xnn n= no. of periods   Geometric…

Q: a) First, ignore the fact that rrf depends on whether you are long or short the risk-free asset.…

A: Note: This post contains several questions. There are no specific directions regarding the question…

Q: Suppose a state lottery prize is to be paid in 25 payments of $360,000 each at the end of each of…

A: Annuity refers to the periodic payment or receipt of cash flow. The annuity period usually…

Q: A project with a life of 5 years is expected to provide annual sales of $250,000 and costs of…

A: Annual Sales = $ 250000 Cost =$ 165000 Tax rate 21% Life of project 5 years Project will require an…

Q: ay, you borrowed $5,400 on a credit card that charges an interest rate of 14.2 percent, compounded…

A: P = Principal = $5,400 r = rate of interest = 14.2% per annum         = 14.2 / 12 = 1.1833% per…

Q: 5. Your marketing staff encourages you to increase your NOW account rate from 0.10% to 0.25% in…

A: NOW (Negotiable Order of Withdrawal) accounts are a type of interest-bearing checking account that…

Q: Which one of the following conditions cannot be a part of constraints for the portfolio optimization…

A: For portfolio optimization model, it is suitable that the return on portfolio is maximised. The…

Q: Suppose the nominal interest rate in the U.S. is 8% per year, the nominal interest rate in Brazil is…

A: International Fisher Effect states that the future exchange rate between 2 countries is the interest…

Q: Which of the alternatives do you think Barry should​ select? Why?

A: To solve this question we will have to compute the EAC of B as well.   As mentioned EAC stands for…

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.