Finances

(Related to Checkpoint​ 9.1)  ​(Floating-rate loans)  The Bensington Glass Company entered into a loan agreement with the​ firm's bank to finance the​ firm's working capital. The loan called for a floating rate that was 27 basis points ​(0.27 ​percent) over an index based on LIBOR. In​ addition, the loan adjusted weekly based on the closing value of the index for the previous week and had a maximum annual rate of 2.18 percent and a minimum of 1.75 percent. Calculate the rate of interest for weeks 2 through 10. Date LIBOR Week 1 1.93​% Week 2 1.66​% Week 3 1.52​% Week 4 1.33​% Week 5 1.57​% Week 6 1.65​% Week 7 1.68​% Week 8 1.92​% Week 9 1.93​%

Do some research and include your sources, to examine the differences between the business-to-business (B2B) and the Business-to-Customer (B2C) business models. What are their primary characteristics? How do they fundamentally differ? Are there any similarities that are of note? How e-commerce has affected the relationships for better and worse?

Refer to the textbook to explain the difference between formal and informal professional networks and the components of each.

Question 20    I bought a bond for $670 on 3/1/2017 and collected coupon payments of $35 on 6/1/2017, 12/1/2017 and on 6/1/2018. I sold the bond on 7/1/2018 for $625. What has been my annualized rate of return on this investment?  A. 7.11% B. 6.25% C. 4.23% D. 8.34%

Question 15  If a bond is selling for $980 and I purchase it on 1/2/2020 and receive two coupon payments of $35 on 3/1/2020 and 9/1/2020 and then it matures on 9/1/2020, what is the YTM On this bond? (Use XIRR) A. 14.5% B. 8.90% C. 13.20% D. 7.90%

If a bond sells for $960 and has an annual coupon of $30, what is the current yield?  A. 2.0% B. 1.8% C. 2.5% D. 3.13%

If a bond sells for $960 and has an annual coupon of $30, what is the current yield?

If Macy's has a credit rating of BBB by S&P and Kohl's Inc has a credit rating of BBB+, what can be said about their bonds?  A. All things constant yields on Macy's bonds should be higher compared to bonds with same maturity and coupon issued by Kohl's.  B. Kohl's bonds should have lower prices than those of Macy's (bonds with same maturity and coupon) C. Macy's has a higher credit rating than Kohl's

If a bond is selling for $980 and I purchase it on 1/2/2020 and receive two coupon payments of $35 on 3/1/2020 and 9/1/2020 and then it matures on 9/1/2020, what is the YTM On this bond? (Use XIRR) a. 14.5% b. 8.90% c. 13.20% d. 7.90%

If a bond is selling for $980 and I purchase it on 1/2/2020 and receive two coupon payments of $35 on 3/1/2020 and 9/1/2020 and then it matures on 9/1/2020, what is the YTM On this bond? (Use XIRR)

A US food importer wants to import wine from Italy. Cost is 6 euros per bottle. Quantity is 10,000 bottles. Exchange rate is 1.05 EURUSD.  How much does it cost?

An Israeli company is buying medical equipment from a US company. Each MRI machine they are buying is 50,000 USD and the Israeli company is buying 10 of these machines. The Israeli company goes to an ISraeli bank for a forward contract and fixes the exchange rate at 3 ISL = 1 USD and the ISraeli bank charges the company 0.01 Shekels for every USD to be converted. What is the total cost of this shipment for the Israeli company?

If the Swiss franc and USD exchange rate is notated as  1.5 = USDCHF , how much is one USD in terms of Swiss francs? a. 1.1 CHF b. 0.91 CHF c. 0.8 CHF d. 1.5 CHF

If the Swiss franc and USD exchange rate is notated as  1.5 = USDCHF , how much is one USD in terms of Swiss francs?

Amanda signed an agreement to purchase 3 million pieces of garments from India at the price of 20 rupees per item in 2015. The payment is due on delivery. If the exchange rate is 30 rupees per dollar in 2015 and becomes 20 rupees per USD in 2016 on delivery, how much is Amanda's loss/profit from this order?

We order wine from italy at the price of 4 euros per bottle, total order quantity is 300,000 bottles, what is the cost in USD terms if the exchange rate is 1.5 USD = 1 EUR?

A US company agrees to purchase 1,000,000 pieces of merchandise from China at the price of 14 yuans per piece. At the time of the agreement the exchange rate was 7 yuans per USD and the US company buys a forward contract from a Bank for the total shipment of the merchandise at the exchange rate of 7 yuan per USD. The bank charges 0.02 USD for every yuan to be converted. What is the cost of the shipment for the importer? (include the cost of the contract)

Question 2    As an importer I signed an agreement to import 5 million pieces of shirts from Bulgaria at the price of 1.5 euros per shirt in November 2018. The delivery is in May 2019. When I signed the agreement the exchange rate was 1.15 USD to Euro. In order to protect myself from fluctuations in the exchange rate I also purchased a Euro forward contract for the total shipment amount for a price of $0.05 per Euro. How much did I pay for the contract?

Go to the following website and open the pdf file: http://www.federalreserve.gov/pubs/feds/2009/200949/200949pap.pdf This is a working paper entitled “Monetary Policy and the Housing Bubble” from Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary Affairs Federal Reserve Board. After reading the paper carefully, prepare a two-page (double-spaced) essay based on the following questions: What is the authors' position regarding the role of US monetary policy and the housing market bubble during the early 2000's? Why?" Cite references to material that you use in preparing the essay. Your essay will be graded on the following: Describe at least six of the following elements: (1) Low rates accompanied increase in demand for housing, (2) Loose versus tight monetary policy, (3) Taylor Rule, (4) Policy assessment and outcomes, (5) Rise of cheap and available credit stimulated housing demand, (6) Evaluate monetary policy by how effective it is in attaining goals, (7) Evidence that monetary policy played a role by the timing of housing boom, (8) Evidence that monetary policy played a role by economic simulation models, and (9) Evidence that monetary policy played a role by other research. Discuss at least 2 of the following topics in discussing how we know that monetary policy played a role in housing market developments: Timing of the housing boom Economic simulation models Other research Use at least one example in the essay.

Question 7    If in 2015, 1US  dollar was worth 30 Jamaican dollars and in 2016, this exchange rate becomes 45 Jamaican dollar to 1 US Dollar, this means the US dollar has depreciated in value between 2015 and 2016.   a. True b. False