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    CH 8 Questions

    Uploaded by

    Kyle Kana
    1. The document lists different types of financial securities and whether they are considered money market securities or capital market securities. 2. It also provides two calculation problems, the first calculating the inflation premium and the second calculating the fair interest rate on corporate bonds. 3. The document provides information on classifying different financial securities and examples of calculations related to interest rates and inflation.

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    Download as DOCX, PDF, TXT or read online from Scribd

    CH 8 Questions

    Uploaded by

    Kyle Kana
    162 views2 pages
    1. The document lists different types of financial securities and whether they are considered money market securities or capital market securities. 2. It also provides two calculation problems, the first calculating the inflation premium and the second calculating the fair interest rate on corporate bonds. 3. The document provides information on classifying different financial securities and examples of calculations related to interest rates and inflation.

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    Week 5

    Original Title

    Kana-HW-WK5

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    1. The document lists different types of financial securities and whether they are considered money market securities or capital market securities. 2. It also provides two calculation problems, the first calculating the inflation premium and the second calculating the fair interest rate on corporate bonds. 3. The document provides information on classifying different financial securities and examples of calculations related to interest rates and inflation.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    162 views2 pages

    CH 8 Questions

    Uploaded by

    Kyle Kana
    1. The document lists different types of financial securities and whether they are considered money market securities or capital market securities. 2. It also provides two calculation problems, the first calculating the inflation premium and the second calculating the fair interest rate on corporate bonds. 3. The document provides information on classifying different financial securities and examples of calculations related to interest rates and inflation.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    CH 8 Questions 1. a. IBM issues $200 million of new common stock primary market b. The New ompany issues $!

    !0 million of common stock in an I"# primary market c. IBM sells $! million of $M preferre% stock out of its marketable securities portfolio secon%ary market %. The Ma&ellan 'un% buys $100 million of pre(iously issue% IBM bon%s secon%ary market e. "ru%ential Insurance o. sells $10 million of $M common stock secon%ary market 2. a. 'e%eral 'un%s money market security b. ommon )tock capital market security c. orporate Bon%s capital market security %. Mort&a&es capital market security e. Ne&otiable ertificates of *eposit money market security f. +.). Treasury Bills money market security &. +.). Treasury Notes capital market security h. +.). Treasury Bon%s capital market security i. )tate an% $o(ernment Bon%s capital market security CH 8 Probms

    ,-2 a. .hat is the inflation premium/ 01pecte% 2IP3 4 i RIR = 5.2!6 - 2.2!6 4 1.006 b. .hat is the fair interest rate on Moore orporation 50-year bon%s/ ij* 4 1.006 7 2.2!6 7 1.1!6 7 0.!06 7 1.8!6 4 9.9!6

    ,-!

    :. 9.006 B. 9.556 . 9.8!6 *. 8.006

    ,-8

    25.;!<5.9!34217.0!32 2145.;=,3

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