You are worried about interest rate volatility. You decide to hedge your portfolio with a 10-year zero coupon bond (face value $100). (a) How much should you go short/long on this bond in order to make it immune to interest rate changes? Find out both the total dollar amount and the number of such bond. (b) What is the total value of the portfolio now?

Why should managers invest any excess cash

After much consideration, you have chosen cancun over ft. lauderdale as your spring break destination this year. however, spring break is still months away, and you may reverse this decision. which of the following events would prompt you to reverse this decision? a. the marginal cost of going to cancun decreases.b. the marginal cost of going to ft. lauderdale decreases.c. the marginal benefit of going to cancun increases.d. the marginal benefit of going to ft. lauderdale decreases.

Which of the following is one of the main causes of inflation? a. wages drop so workers have to spend a higher percentage of income on necessities. b. demand drops and forces producers to charge more to meet their costs. c. rising unemployment cuts into national income. d. consumers demand goods faster than they can be supplied.