Current age
Retirement age
Current earnings
Amount required
Social security amount
Savings in 401(k)
College education
Number of years
Increase in college cost
Inflation
Total savings in 401(k)
Rate of return
Number of years expected to live
25
67
$150,00
Question:
Interest Rate Risk. Both Bond Bill and Bond Ted have 7 percent coupons, make semiannual
payments, and are priced at par value. Bond Bill has 3 years to maturity, whereas Bond Ted has
20 years to maturity. If interest rates suddenly rise by 2 per
Chapter:2
6,7,8,11- basic probability questions
12- proof based questions
15,16,23,24,25,27,28,30 simple conditional probability based
questions
32,33- proof based questions (must)
35,37- base theorem based questions
All review questions - 38,39,40,41,42,
Answer 6:
Since Na+ is the cation of strong base and F- is the anion of a weak acid we can predict that a solution of
NaF will be basic. The Na+ will not hydrolyze (react with water), but F- does.
F- + HOH <=> HF + OH- Kb = Kw / Ka = 1x10^-14 / 3.53 x 10^
Lakonishok Equipment has an investment opportunity in Europe. The project costs 15 million and is expected to produce cash flows of 2.9 million in Year 1, 3.5 million in Year 2, and
4.0 million in Year 3. The current spot exchange rate is $1.44/; the curr
Solution 1:
Yr 0 cashflow = -465,000-26,000 = -491,000
Annual depreciation = 465,000/5 = 93,000
Annual cashflow = 225,000*(1-35%) + 93,000*35% = 178,800 (for yrs 1-4)
For yr 5, we also have additional cashflow of 26,000 of working capital and eqpt salvage
Lakonishok Equipment has an investment opportunity in Europe. The project costs 10 million and is expected to produce cash flows of 1.2 million in Year 1, 1.6 million in Year 2, and 2.7
million in Year 3. The current spot exchange rate is $1.27 / ; and th
Probability & Statistics
1
Dr. Suresh Kumar, Department of Mathematics, BITS-Pilani, Pilani Campus
Note: Some concepts of Probability & Statistics are briefly described here just to help the students. Therefore,
the following study material is expected to
Probability & Statistics
1
Dr. Suresh Kumar, Department of Mathematics, BITS-Pilani, Pilani Campus
Note: Some concepts of Probability & Statistics are briefly described here just to help the students. Therefore,
the following study material is expected to
Birla Institute of Technology & Science, Pilani
Distance Learning Programmes Division
Second Semester 2006-2007
Mid-Semester Test
(EC-1 Regular)
Course No.
Course Title
Nature of Exam
Weightage
Duration
Date of Exam
Note:
1.
2.
3.
4.
: AAOC ZC111
: PROBAB
Birla Institute of Technology & Science, Pilani
Work-Integrated Learning Programmes Division
First Semester 2009-2010
Mid-Semester Test
(EC-1 Regular)
Course No.
Course Title
Nature of Exam
Weightage
Duration
Date of Exam
Note:
1.
2.
3.
4.
: AAOC ZC111
:
Birla Institute of Technology & Science, Pilani
Distance Learning Programmes Division
First Semester 2008-2009
Mid-Semester Test
(EC-1 Regular)
Course No.
Course Title
Nature of Exam
Weightage
Duration
Date of Exam
Note:
1.
2.
3.
4.
: AAOC ZC111
: PROBABI
Birla Institute of Technology & Science, Pilani
Distance Learning Programmes Division
First Semester 2007-2008
Comprehensive Examination (EC-2 Regular)
Course No.
Course Title
Nature of Exam
Weightage
Duration
Date of Exam
Note:
1.
2.
3.
4.
: AAOC ZC111
:
Birla Institute of Technology & Science, Pilani
Distance Learning Programmes Division
Second Semester 2006-2007
Comprehensive Examination (EC-2 Regular)
Course No.
Course Title
Nature of Exam
Weightage
Duration
Date of Exam
Note:
1.
2.
3.
4.
: AAOC ZC111
Birla Institute of Technology and Science, Pilani
IInd Semester 2009-10
Comprehensive Examination (Closed Book)
AAOC C111 (Probability and Statistics)
Date: 07-05-2010 (Friday)
Max. Marks: 90
Max. Time: 150 mins
Note: Attempt Part B and Part C in the sepa
BIRLA INSTITUTE OF TECHNOLOGY AND SCIENCE, Pilani
Pilani Campus
Instruction Division
SECOND SEMESTER 2013-2014
COURSE HANDOUT (Part II)
In addition to Part I (General Handout for all courses appended to the time table) portion here give specific
details r
Question:
EBIT and Leverage. Kaelea, Inc., has no debt outstanding and a total market value of $125,000. Earnings before
interest and taxes, EBIT, are projected to be $10,400 if economic conditions are normal. If there is strong expansion
in the economy,
Jerry and Jenny financial planning
6. In your own words, provide the couple with the advantages and disadvantages of two
investment instruments that are used specifically to save for college education expenses.
Which would you recommend and why?
Answer:
T