Need Help on 2 questions please.. finance wise?
The short answer is "it depends". Sensitivity to changes in interest rates is measured by duration. When interest rates are low, duration is high. That is a 1% change in yields from 2% to 3% YTM will have a much bigger effect on a bond price than a 9% to 10% YTM. Also, the longer the term of the cashflows back, the higher the duration. All else being equal, a long bond's price is much more sensitive to interest rate changes than a short term bond. Under normal conditions, bond rates are upward curving (longer term rates are higher than shorter term rates). However, during top of bull markets often a rate curve can become inverted (short rates are higher than long rates). There is an inverse relationship between bond prices and interest rates. lower the interest rate and the longer the payment. So really, it's going to depend upon the term structure of the bond and what the futures markets look like in the credit market. If you are asking whether you should, right now given current market conditions, what's going to happen to US Treasuries given volatility in te European markets, my guess is that US short rates are going to decline by another 0.50%, long rates will decline by the same amount, but spreads will remain very wide (but not as bad as they are now). In theory, a rising interest rate is negative for equity markets (and visa versa). In practice, it is the opposite because neo-Keynsians like most of the current central bankers raise interest rates when things are good and lower them when things are bad to try and smooth cyclical volatility.
Financial questions please help?
1. The financial markets allocate capital to corporations by a)reflecting expectations of the market participants in the prices of the corporation's securities. b)requiring higher returns from companies with lower risk than their competitors c)rewarding companies with expected high returns with lower relative stock prices d)relying on the opinion of investment bankers 2. The best indication of the operational efficiency of management is a) net income. b)earnings per share. c)earnings before interest and taxes (EBIT). d)gross profit. 3. The extent to which inventory financing may be used depends on a) marketability of pledged goods. b)price stability of goods. c)perishability of goods. d)all of the above
Please help with this finance question!!!?
1. Consider the following equally likely project outcomes: Profit X Y Pessimistic prediction $ 0 $500 Expected outcome $ 500 $500 Optimistic prediction $1000 $500 a. Project Y has less uncertainty than Project X. b. Project X has more variability than Project Y. c. Since Projects X and Y have the same expected outcomes of $500, investors will view them as identical in value. d. Answers (a) and (b) above are true
Finance related question please help!!!!!!?
Cut-off for social security for 2007 is $97,500 not $94,200 ($94,200 was 2006 cut-off). Using the numbers provided here's the following numbers. Federal withholding 300,000 x .31 = 93,000 Social Security 97,500 x .9235 x .124 = 11,165 Medicare 300,000 x .9235 x .029 = 8,034 (Self-Employment tax is 92.35% of net SE income). Total estimated tax = 112,199 (93,000 + 11,165 + 8,034) Quarterly tax = 28,050 (112,199 / 4)
FINANCE QUESTION PLEASE HELP (SHOW WORK)?
"Rule of 72" short quick answer you know rate of return. 5.95% Take 72 and divided by rate of return = # of years for 1000 or any amount to double. Answer 12.1 years Quick math. Do you want actually calculation or just a close amount. Rule of 72 gets you very close, like for government work. you can also reverse it What rate do i have to earn (rate of return) for my money ($1000) to double __(any # of years, lets use 10 years) 72 divided 10= 7.2% you must earn to double in 10 years
Please help me solve this Finance question...your opinions help! Thank you so much?
Answer for Q1, you choose the lump sum option because you'll have the cash in your hand immediately.... im not gonna answer it anymore because its a really basic accounting/finance question.
Can someone please help me with these two financial questions?
I have two financial questions that I need help in? Ok, I tried these two problems and I am lost. I tried like 10 times and still nothing so if anyone can please help me on these two problems, I will appreciate it. Explain how you got your answer as well so I can understand 1) Marie needs $26,000 as a down payment for a house 4 years from now. She earns 5.25 percent on her savings. Marie can either deposit one lump sum today for this purpose or she can wait a year and deposit a lump sum. How much additional money must Marie deposit if she waits for one year rather than making the deposit today? A)$1,112.36 B)$911.13 C)$1,348.03 D)$878.98 E)$1,420.18 2)Swenson & Swenson just decided to save $2,200 a month for the next 6 years as a safety net for recessionary periods. The money will be set aside in a separate savings account which pays 5.5 percent interest compounded monthly. They deposit the first $2,200 today. If the company had wanted to deposit an equivalent lump sum today
So confused on personal finance question, please help!!!?
The simple way of doing this is to ignore interest and just say you need another $15,000, you have 5 years to save up this much, therefore you need to save $3,000 a year or $250 a month. Put that away where it will earn interest and you're going to need to save less, but as I said I'm ignoring interest to keep it simple. That's less than a tenth of gross salary so it should be affordable. I assume your teaching specialism isn't math!
What are some MBA finance fresher interview questions and answers?
Well yes I recently gave one at Symbiosis for MBA in international Business. It was my first interview and I had prepared for some basics and regular questions that I found that used be asked like, Tell me about yourself?Why MBA?Why at this institute?And more.Infact I faced a different start for the interview. I entered the PI room smiling greeted the panelist(P) and they offered me to sit.The moment I sit. P - SMART BOY!!Me - Thank you sir.P - Why do you think I called you smart?(Silence for 5-10 secs)Me - Clearing the entrance exam and getting qualified for this process might have made you say that.P - Ok! (Seemed satisfied)Then there were some questions on current affairs which I managed to answer.After that he started with personal questions about likes dislikes, hobbies etc.There was one question about football, what he asked was - Why did the team win the match?And what I answered was - Because they scored the goal against the opposition team. Both the panelist started laughing and the interview was done. What I learned from my first interview was to be yourself and be ready for anything. PS: waiting for results.