You graduated from usf and got a job at metlife pension department. your supervisor needs your with some of its liabilities and risk control. the pension fund has a series of liabilities to be paid to the pension plan beneficiaries:
in 6 months: $2,000,000,

in 1 year: $2,200,000,
in 1.5 years: $2,500,000,
in 2 years: $3,200,000,
in 2.5 years: $3,700,000,
in 3 years: $4,300,000,
in 3.5 years: $4,700,000,
in 4 years: $5,100,000.

your company wishes to construct a portfolio of assets to cover this series of liabilities, such that it is immunized against interest rate risk right now. the company is considering investing in four different bonds: (1) a 1-year treasury bill with a face value of $1,000 and no coupon, (2) a 2-year treasury note with a face value of $1,000 and an annual coupon rate of 1.5%, (3) a 3-year treasury note with a face value of $1,000 and an annual coupon rate of 1.90%, and (4) a 5-year treasury note with a face value of $1,000 and an annual coupon rate of 2.30%. all treasury notes make 2 (semi-annual) coupon payments per year. the current yield on all bonds is 1.45%. your supervisor wants you to find out how many of each of these four treasury bonds the fund should buy to fully fund the liability and be immunized against interest rate risk right now?

Ryan terlecki organized a new internet company, capuniverse, inc. the company specializes in baseball-type caps with logos printed on them. ryan, who is never without a cap, believes that his target market is college and high school students. you have been hired to record the transactions occurring in the first two weeks of operations. issued 2,900 shares of $0.01 par value common stock to investors for cash at $29 per share. borrowed $68,000 from the bank to provide additional funding to begin operations; the note is due in two years. paid $1,000 for the current month's rent of a warehouse and another $1,000 for next month's rent. paid $1,440 for a one-year fire insurance policy on the warehouse (recorded as a prepaid expense). purchased furniture and fixtures for the warehouse for $16,000, paying $3,200 cash and the rest on account. the amount is due within 30 days. purchased for $2,800 cash the university of pennsylvania, notre dame, the university of texas at austin, and michigan state university baseball caps as inventory to sell online. placed advertisements on google for a total of $340 cash. sold caps totaling $1,900, half of which was charged on account. the cost of the caps sold was $1,100. (hint: make two entries.) made full payment for the furniture and fixtures purchased on account in (e). received $280 from a customer on account.

When the federal reserve buys bonds from or sells bonds to member banks, it is called monetary policy reserve ratio interest rate adjustment open market operations

The brs corporation makes collections on sales according to the following schedule: 30% in month of sale 66% in month following sale 4% in second month following sale the following sales have been budgeted: sales april $ 130,000 may $ 150,000 june $ 140,000 budgeted cash collections in june would be: