Finance Answers

Consider a two year coupon bond, with an annual coupon of £500 and a
balloon payment of £2400. Suppose at t=0 the yield on a riskless bond that mature in
one year is 5% and the annualized yield on a two-year bond is also 5%.

Compute the present value, at t=0 of the bond.
What is the duration of the bond?
What is the meaning of duration and why this is an important feature to assess a bond?

A young entrepreneur is about to set up a new firm production hats. She calculates that the variable cost of producing each hat will be €2 and fixed costs of production will be €10.000. She will be selling her hats at 10€ each. How many units dose she need to sell to break even?

Hos does government investment compliment private investment?

1) The company Old Co has a current stock price of $210 per share. Last year they paid an
annual dividend of $10 per share. Historically the dividend growth was 5% per year; the next dividend payment will be $10.50. What is the discount rate implied by this firm?
2)A competitor NewCo enters the market (same good, same technology, same market). The
company says they do not plan to pay a dividend for the first five years. Instead, they plan to
use the cash to make strategic acquisitions into new businesses. The company says they will
pay a dividend at the end of year 6 of $20 and then grow the dividend by 5% a year. What is
the present value of NewCo using the discount rate of OldCo?

the
company
Old
Co has a
current stock
price of $210 per share
. L
ast year
they
paid an
annual dividend of $10 per share. Historically the dividend growth was 5% per year
;
the next
dividend
payment will be $
1
0.50
. What is the discount rate implied by this firm?

Demonstrate the relationships and links between various international parity conditions, and explain the meanings and implications of each of them.

A has just announced a dividend of 16p. Investors expect its dividend to grow in the future at a rate of 6% and they require a rate of return of 15% from their shares. What is the company's current cum-div share price?

Suppose you have 50 units of inventory at the beginning of month of April 01, 2020, per unit cost is XXX [Suppose per unit cost at your own which must not match with someone else]. On 5th April, 2020 you purchased 100 more units at the rate of XXX, after 3 days on 8th April, 2020 you sold 70 units and on 10th April , 2020 purchased 120 units and the per unit cost is XXX.. On 15th April you sold 130 units.
After 5 days on 20th April you purchased 150 units at the rate of XXX, and 2 days later you purchased 50 units at the rate of XXX and on 30th April, 2020 you sold 200 units.
You are required to make table of inventory valuation under FIFO, LIFO and Average costing method.

Do the cultural and social economic contexts of countries influence the decision making in
banks

1.What is suggested by the international Fisher effect?
2. Defined transaction exposure
3.what is defined as effective exchange rate?
4.what is the balance of payments? specify its major categories