PPT
... • In order to derive PV of resource, need to determine extraction rate over resource’s life • Where resource is renewable and exploitation sustainable, resource has infinite life • Usually assumed extraction rate will be constant, but may not necessarily be: if information available to indicate non- ...
... • In order to derive PV of resource, need to determine extraction rate over resource’s life • Where resource is renewable and exploitation sustainable, resource has infinite life • Usually assumed extraction rate will be constant, but may not necessarily be: if information available to indicate non- ...
1 A $1000 bond has a coupon of 6% and matures after
... (PV = -3000; N = 3; I = ?; PMT = 0, and FV = 4562. I = 14.99.) Investment A is not acceptable because its internal rate of return is less than the cost of capital. Since B and C are mutually exclusive, the firm selects B since it has the higher internal rate of return. d. Investment A is not accepta ...
... (PV = -3000; N = 3; I = ?; PMT = 0, and FV = 4562. I = 14.99.) Investment A is not acceptable because its internal rate of return is less than the cost of capital. Since B and C are mutually exclusive, the firm selects B since it has the higher internal rate of return. d. Investment A is not accepta ...
FUTURE // noun [C, usually pl
... an exchange of different types of payments between two companies, for example payments in different currencies or with different interest rates: The increased volume of swaps has boosted futures trading on the Mexican derivatives exchange. 3 (Finance) an act of exchanging one investment or asset for ...
... an exchange of different types of payments between two companies, for example payments in different currencies or with different interest rates: The increased volume of swaps has boosted futures trading on the Mexican derivatives exchange. 3 (Finance) an act of exchanging one investment or asset for ...
FINANCIAL DERIVATIVES FOR BEGINNERS
... Financial Derivatives Derivatives are mainly used to mitigate future risks, however they do not add value since hedging is a zero sum game and secondly investors mostly use them on do it yourself alternatives basis. Derivatives markets can be traced back to middle ages. They were ...
... Financial Derivatives Derivatives are mainly used to mitigate future risks, however they do not add value since hedging is a zero sum game and secondly investors mostly use them on do it yourself alternatives basis. Derivatives markets can be traced back to middle ages. They were ...
File: ch10 Type: Multiple Choice 1. Which are the two major
... 1. Which are the two major approaches used to value stocks? a) Discounted cash flow techniques and relative valuation techniques. b) Discounted cash flow techniques and absolute valuation techniques. c) Compound cash flow techniques and relative valuation techniques. d) Compound cash flow techniques ...
... 1. Which are the two major approaches used to value stocks? a) Discounted cash flow techniques and relative valuation techniques. b) Discounted cash flow techniques and absolute valuation techniques. c) Compound cash flow techniques and relative valuation techniques. d) Compound cash flow techniques ...
Inheritance Tax - a Summary
... Life assurance arrangements can be used as a means of removing value from an estate and also as a method of funding IHT liabilities. A policy can also be arranged to cover IHT due on death. It is particularly useful in providing funds to meet an IHT liability where the assets are not easily realised ...
... Life assurance arrangements can be used as a means of removing value from an estate and also as a method of funding IHT liabilities. A policy can also be arranged to cover IHT due on death. It is particularly useful in providing funds to meet an IHT liability where the assets are not easily realised ...
Derivatives
... Keynes and Hicks-- Speculators will only enter the market if they expect to have a positive profit. If more speculators are holding a long position, it implies that the futures price is less than the expected spot price A second explanation can be found by looking at the relationship between risk an ...
... Keynes and Hicks-- Speculators will only enter the market if they expect to have a positive profit. If more speculators are holding a long position, it implies that the futures price is less than the expected spot price A second explanation can be found by looking at the relationship between risk an ...
The Use of Financial Derivatives by Canadian Firms
... be consistent with those found in other jurisdictions. Financial derivatives such as forwards, futures, options and swaps allow corporations to protect themselves from unpredictable changes in exchange rates, interest rates and commodity prices, thereby reducing the degree of financial risk to which ...
... be consistent with those found in other jurisdictions. Financial derivatives such as forwards, futures, options and swaps allow corporations to protect themselves from unpredictable changes in exchange rates, interest rates and commodity prices, thereby reducing the degree of financial risk to which ...
The challenges for monetary policy
... The baseline scenario used by the FOMC’s members assumes that, if inflation expectations are well anchored, inflation will progressively converge on its target as labour market slack decreases and the effects of the transitory factors wears off – as has been observed to be happening gradually over t ...
... The baseline scenario used by the FOMC’s members assumes that, if inflation expectations are well anchored, inflation will progressively converge on its target as labour market slack decreases and the effects of the transitory factors wears off – as has been observed to be happening gradually over t ...
2 Macroeconomic Variables and Term Structure of Interest
... government bonds easily, because they represent a highly liquid asset that can protect against liquidity risk, or risk of lacking the resources to honor its contractual commitments to maturity or the risk of unexpected withdrawals of deposits. In the analysis of the spread of the term, Campbell (199 ...
... government bonds easily, because they represent a highly liquid asset that can protect against liquidity risk, or risk of lacking the resources to honor its contractual commitments to maturity or the risk of unexpected withdrawals of deposits. In the analysis of the spread of the term, Campbell (199 ...
EDITragan_12ce_ch28
... the equilibrium market price of a bond (or other financial asset) should be the PV of the stream of income generated by the bond. ...
... the equilibrium market price of a bond (or other financial asset) should be the PV of the stream of income generated by the bond. ...
How Homeowners Choose between Fixed and Adjustable Rate
... in the terminal wealth of the borrower. This inclusion leads to differences between this model and the Baesel and Biger (1980) model in the identification of the cases where borrowers will prefer fixed or index-linked mortgages. Statman (1982) found that borrower’s preferences for fixed rate or inde ...
... in the terminal wealth of the borrower. This inclusion leads to differences between this model and the Baesel and Biger (1980) model in the identification of the cases where borrowers will prefer fixed or index-linked mortgages. Statman (1982) found that borrower’s preferences for fixed rate or inde ...
Inflation targeting framework and interest Rates
... Kovanen (2011) analysed interest rate pass-through using time series and panel bank-specific data of 20 largest banks during the period 2005 to 2010 for Ghana. The focus variables were the interbank market interest rate and 91-day treasury bill interest rate which are expected to be relevant bench m ...
... Kovanen (2011) analysed interest rate pass-through using time series and panel bank-specific data of 20 largest banks during the period 2005 to 2010 for Ghana. The focus variables were the interbank market interest rate and 91-day treasury bill interest rate which are expected to be relevant bench m ...
LECTURE 4 Consider a consumer with a two
... • Below the saddle path eventually f 0(k) < g + n (the economy is to the right of Golden rule)and limt→∞ kte(−R(t)+(n+g)t) = ∞. The economy eventually ends with negative c, which cannot be optimal as it violates the Inada condition. • Saddle path is the unique time path which satisfies all requireme ...
... • Below the saddle path eventually f 0(k) < g + n (the economy is to the right of Golden rule)and limt→∞ kte(−R(t)+(n+g)t) = ∞. The economy eventually ends with negative c, which cannot be optimal as it violates the Inada condition. • Saddle path is the unique time path which satisfies all requireme ...
A Primer on Floating-Rate Notes
... reasonable, but we do not represent that such information, assumptions, data or computations are accurate or complete, or appropriate or useful in any particular context, including the context of any investment decision, and it should not be relied upon as such. In addition, we do not undertake to u ...
... reasonable, but we do not represent that such information, assumptions, data or computations are accurate or complete, or appropriate or useful in any particular context, including the context of any investment decision, and it should not be relied upon as such. In addition, we do not undertake to u ...
Municipal Act, 2001 - O. Reg. 247/01
... fluctuations in rates of exchange between the Canadian dollar and other currencies; (“risque de change”) “foreign currency debenture” means a debenture expressed and payable in a foreign currency; (“débenture en devise étrangère”) “interest rate risk” means the financial risk associated with issuing ...
... fluctuations in rates of exchange between the Canadian dollar and other currencies; (“risque de change”) “foreign currency debenture” means a debenture expressed and payable in a foreign currency; (“débenture en devise étrangère”) “interest rate risk” means the financial risk associated with issuing ...
Fixed Income in a Rising Rate Enviornment
... in time, of bonds having equal credit quality, but differing maturity dates. One of the most important determinants of short-term interest rates is the Fed’s monetary policy position. The federal funds rate, which anchors short-term rates in the market, is a key tool in implementing these policy dec ...
... in time, of bonds having equal credit quality, but differing maturity dates. One of the most important determinants of short-term interest rates is the Fed’s monetary policy position. The federal funds rate, which anchors short-term rates in the market, is a key tool in implementing these policy dec ...
Accounting for Notes Receivable
... Promissory Note-a written promise to pay a specified amount of money either on demand or at a definite future date. Promissory Notes may be used in exchange for goods or services, in exchange for loaned funds, or in exchange for an outstanding account receivable. Principal-amount stated on the face ...
... Promissory Note-a written promise to pay a specified amount of money either on demand or at a definite future date. Promissory Notes may be used in exchange for goods or services, in exchange for loaned funds, or in exchange for an outstanding account receivable. Principal-amount stated on the face ...
Chapter 8
... fr(0,t1,t2), the FRA buyer profits. • The amount paid (at time t1) is the present value of the difference between the settlement rate and the contract rate times the notional principal times the fraction of the year of the forward period. • A FRA’s value is initially zero, when the contract rate is ...
... fr(0,t1,t2), the FRA buyer profits. • The amount paid (at time t1) is the present value of the difference between the settlement rate and the contract rate times the notional principal times the fraction of the year of the forward period. • A FRA’s value is initially zero, when the contract rate is ...
Currency Futures Presentation January 2014
... Known as the daily settlement of profits and losses The Currency Future price is determined from the underlying markets spot price to which forward points are added to deliver the final price used in the daily MTM process The Exchange re-values each position daily at the close of each business day, ...
... Known as the daily settlement of profits and losses The Currency Future price is determined from the underlying markets spot price to which forward points are added to deliver the final price used in the daily MTM process The Exchange re-values each position daily at the close of each business day, ...
Currency Futures Presentation January 2014
... Known as the daily settlement of profits and losses The Currency Future price is determined from the underlying markets spot price to which forward points are added to deliver the final price used in the daily MTM process The Exchange re-values each position daily at the close of each business day, ...
... Known as the daily settlement of profits and losses The Currency Future price is determined from the underlying markets spot price to which forward points are added to deliver the final price used in the daily MTM process The Exchange re-values each position daily at the close of each business day, ...
Interest rate swap
An interest rate swap (IRS) is a liquid financial derivative instrument in which two parties agree to exchange interest rate cash flows, based on a specified notional amount from a fixed rate to a floating rate (or vice versa) or from one floating rate to another. Interest rate swaps can be used for both hedging and speculating.