Use the semi-annually compounded yield curve in the following table to price the some fixed income securities:

Maturity T Yield r2 (0, T)

0.50 6.49%

1 6.71%

1.5 6.84%

2 6.88%

(e) 2-year floating rate bond with zero spread and semiannual payments

(f) 1.5-year floating rate bond with zero spread and annual payments. For this question, assume r1 (−0.5, 0.5) = 6%.

(h) 1.5-year floating rate bond with 40 basis point spread with annual payments. For this question, assume r1 (−0.5, 0.5) = 6%.

The blank is type of decision-maker who over analyzes information

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

Zoe would like to be able to save for night courses at the local college. which of these would be a good way for zoe to make more money available for savings without dramatically changing her budget? economía