Louis purchased $5,000 worth of stock three years ago and sold it today for $7,000. He received no dividends from this investment. Inflation averaged 4% during the three years he owned the stock. What was his annualized real rate of…
Should the US apologize to foreign nations, enemy and supporter, for intercepting communications, or has history given suitable reason to take such action?
Currently EURO contracts (125,000 EURO each) are traded at $0.8470. Spot rate is $0.8310 (ie EUR/USD 0.8310). Assume that a speculator bought 80 Euro futures contract (Euro10,000,000). Suppose speculator liquidated the contract one month later, when the contract closed at…
Discuss the sources of the apparent costless gains and the risks associated with writing covered calls.
Thirty-five years ago, you invested $1,000 in a retirement fund. Today the fund is worth $130,000. What has been your annually compounded rate of return on this investment? a. 13.7% b. 11.2% c. 12.8% d. 14.9%
On January 1, 2013, Kimberly purchased a 20-year annuity for $40,000 from MAGDA MUTUAL (an established insurance company). Under the annuity, Kimberly will receive payments of $370 for each month of annuity’s life. What amount of the annuity payments may…
Find the present value of an annuity that pays $1,000 at the end of each year for 5 years if the appropriate discount rate is 15%. Calculate the future value of that same annuity. How would the PV / FV…
Describe the importance of checks and balances? Is one branch of government more powerful than the others? How about a present event illustration which describes the power of one branch of government to check the other. Is it suitable for…
Acme has decided to establish a sinking fund for its outstanding preferred stock issue. $975318642 represents the amount of the issue that will be retired in 26 years. At the beginning of each of these 26 years, Acme will deposit…
Explain an issue you support that is an issue for a main political party. In what manners do your interests and the party’s interests agree or disagree on the issue? Is a third, or fourth, party essential to sufficiently represent…
