2. What’s the relationship between debt and Cost of Equity? More debt means that the company is more risky, so the company’s Levered Beta will be higher – all else being equal, additional debt would raise the Cost of Equity, and less debt would lower the Cost of Equity. 3. Which ...
Economists Question Decision to Raise Discount RateNever has the Federal Reserve Board made an interest-rate decision that wasn't controversial, and its latest one - a half percentage point increase to 6.5 percent in the discount rate - continues the tradition.John Cunniff, Ap...
An anonymous benefactor will provide you with six annual payments of 100,000 with the first payment being made today. Assuming that the appropriate discount rate is J2 = 10%, what is the present value of these cash flows?Question 4Mr Jaggers wants to retire 25 years from now. One year af...
Report the present value of the annuity (a) one year before the first payment and (b) today Question 6Using the annuity cash flows from Question 5 as a series of deposits made into a savings account and the interest rate from Question 5 as the return on savings, what is the balance ...
What is the discount function at a maturity of 1 year, P(0.1)? (State your answer to the second decimal point.) QUESTION 2 Consider three coupon bonds that make semi-annual coupon payments. One bond matures in exactly 1/2 year, has a coupon...
What is the gender health gap and how does it affect women in Canadian workplaces? Answer from Marie-Chantal Coté, Senior Vice President, Group Benefits, Sun Life The gender health gap is the history of women’s health needs not being met. It’s due to many factors, ranging from ...
aThe discount rate is the interest rate the Fed charges banks for loans. 折扣率是联邦机关充电银行为贷款的利率。[translate] aFrom ancient times to modern-day political thought, people have been asking, what is the right thing to do? How many times have you yourself raised this question and...
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Fee payment:0.5%of outstanding balance Assume prepayment rate:0.5%of the mortgage pool for the1styear,1%for the2ndyear, and1.25%for the remaining years What is the value of this pass-through at8%discount rate?
What is the interest rate called in this inter-bank loan market? a)Prime rate b)Mortgage rate c)Federal funds rate d)Discount Rate Answer:C 17.A government that wanted to decrease Y without changing r could do so by ___ G and ___ by the appropriate amounts. a)increasing, decreasing...