Business Finance Help for College and University Students

Analysis of an Answer to a Finance Question

On a "non attribution" basis, I need an analysis of the my answer to the following question compared to the instructor's answer. I received no credit for my solution and believe my response adequately answers the question. BOTTOM LINE: Am I at least partially correct or did I take too many qualudes as a child? The ques ...continues

Currency Swaps: Terms of spread

In the cash market, an American Bank (A) can issue either yen 1 billion worth of bonds yielding 5.3% p.a. and priced at par or $10 million worth of bonds yielding 6.5% p.a. and priced at par. At the same time, a Japanese bank (B) can either issue yen 1 billion worth of bonds yielding 5.5% p.a. and priced at par of $10 million ...continues

Real Estate Finance: In a long-term decision model for project feasibility, what impact on a developer-owner’s net present value would occur for each of the following changes in the model’s assumptions? 1. Decrease in the net present value. 2. Increase in the net present value. 3. No change in the net present value.

In a long-term decision model for project feasibility, what impact on a developer-owner’s net present value would occur for each of the following changes in the model’s assumptions? 1. Decrease in the net present value. 2. Increase in the net present value. 3. No change in the net present value. Treat each item below ...continues

Interest rates, risk-free rate, expectation, liquidity, 1 year treasury bond,

1. The interest rate on 1-year Treasury securities is 5 percent. The interest rate on 2-year Treasury securities is 6 percent. The expectations theory is assumed to be correct. If the real risk-free rate is assumed to be 3% every year, what is the inflation expected in year-2? 2. The real risk-free rate of interest is 3 perc ...continues

Currency swaps: Additional calculations when interest rates change

You helped me with a swap problem earlier (posting PC11892). I have another question based upon that information. First question answered for posting PC11892 (answer is attached) In the cash market, an American Bank (A) can issue either yen 1 billion worth of bonds yielding 5.3% p.a. and priced at par or $10 million worth of ...continues

Currency Swap

11892) In the cash market, an American Bank (A) can issue either yen 1 billion worth of bonds yielding 5.3% p.a. and priced at par or $10 million worth of bonds yielding 6.5% p.a. and priced at par. At the same time, a Japanese bank (B) can either issue yen 1 billion worth of bonds yielding 5.5% p.a. and priced at par ...continues

Lease Vs. Buy, Financing and Capital Structure, how firms raise capital and the roles of intermediaries

1) Lease or Buy. Your company wants to purchase a new network file server for its wide-area computer network. The server costs $75,000. It will be completely obsolete in three years. Your options are to borrow the money at 10 percent or to lease the machine. If you lease, the payments will be $27,000 per year, payable at the ...continues

Risk associated with purchase and core deposits

Why are purchase deposits generally considered to be more risky than core deposits?

5 C's of Good Credit

What are the 5 C's of good credit?

Loan Amortization and Retirement Annuity Case Study

Question #1 LOAN AMORTIZATION SCHEDULE Val Hawkins borrowed $15,000 at a 14% annual rate of interest to be repaid over 3 years. The loan is amortized into three equal annual end-of-year payments. a) calcualte the annual end-of-year payment. b) Prepare a loan amoritization schedule showing the interest and principal breakdown ...continues