Compare using , or =.

The monthly family income of a family is $`a`,000. They spend `b`% of their monthly income on food. How much do they spend on food each month? Answer = $________ (fill in the value)

The coupon rate of a bond is:

Which of the following statements regarding growing annuities is FALSE?

You are looking at an account statement from your bank, Madoff Mutual.  You note that the statement has listed an nominal rate of 8.0%.  You believe inflation is going to be 5.25%.  You were planning to invest $100 in this account.  If you are correct about inflation, how much would you have in the account at the end of 1 year, and how much would it be worth in today’s dollars?

Use the “Giadeo” spreadsheet to complete this problem. You observe the following information about some market securities and want to try to take advantage of any arbitrage opportunities available; assume that investments have the same risk.  Assume you cannot buy partial shares.  In order to take advantage of an arbitrage opportunity, you would: Price Year 1 Year 2 Baileys  $         1,461  $         1,680  $            –   Jack  $            635  $                –    $         840 Captain  $         4,925  $         4,200  $     1,680 Jose  $         5,200  $         3,200  $     3,200  

If you buy shares of Coca-Cola on the secondary market:

Use the table for the question(s) below. Consider the following two quotes for XYZ stock: How much would you have to pay to purchase 100 shares of XYZ stock on November 18th?

Suppose you deposited $5,000 in a TFC bank account that pays 6% with daily compounding and a 360-day year.  How much could you withdraw after 7 months, assuming each month has 30 days?

The Ford Prefect Company has bonds outstanding with a face value of $1,000 that reach maturity in 15 years.  The bond’s indenture indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually.  Assuming that this bond trades for $692.50, then the YTM for this bond is closest to: