Financial markets and institutions


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"Hi, I am taking Financial markets and institutions this quarter.Please answer the questions accurately and thoughtfully, and show the steps for calculation.I upload the questions as a word file, please contact me if you have questions. Document Preview: Please answer these questions one by one. The answers should be accurate and thoughtful. For the calculation, please show the steps. Chapter 11 - The Money Markets 1.) Why did the money markets develop in the U.S.? Also, define the principal instruments available. 2.) Assume you are buying a 151 day Treasury bill of $100,000 that has a discount rate of 2.5% per annum. How much will you pay? 3.) with the result from #2, compute the yield or investment rate for the same T-bill. 4.) Summarize the importance of LIBOR in banking and the financial markets. Chapter 12 - The Bond Market 1.) Describe the two types of municipal bonds. Which one is more risky and why? 2.) What is the purpose of restrictive covenants in bonds? 3.) Diagram a typical Credit Default Swap (""CDS""). 4.) A seven-year, $1000 par bond has an 8% annual coupon and is currently yield 7.5%. The bond can be called in two years at a call price of $1010. What is the bond’s yielding assuming it will be called( know as the yield to call) ? Chapter 13 - The Stock Market 1.) What are the two ways that preferred stock is preferred over common equity shares? 2.) What are the two valuation methods that can be used to determine all stock prices? Describe each. 3.) There are a number of indexes that track the performance of the stock market. It is interesting to review how well they track along with each other. Go to http://bloomberg.com Click the “charts” tab at the top of the screen. Alternatively, choose to display the DJIA, S&P 500, NASDAQ, and Russell 2000. Set the time frame to five years. Click “Get chart”. which index has been most volatile over the last five years? which index has posted the greatest gains over the last five years? now adjust the time frame to intraday. Which index has performed the best today? Which has been most volatile? Attachments: Financial-que....docx Oct 16 2014 05:15 PM"


Solution ID:609048 | This paper was updated on 26-Nov-2015

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