6.The Garcia Companys bonds have a face value of $1,000, will mature in 10 years, and
carry a coupon rate of 16 percent. Assume interest payments are made
semiannually.
a. Determine the present value of the bonds cash flows if the required rate of return
Topic 8: Hypothesis Testing - The F-test of equal variances
Objectives:
Properties of the F-distribution
The null hypothesis is that the variances from two random samples are the same
For convenience, we test at the upper tail
Economic Motivation
Finance:
Week II PART I
Key features of bonds
Bond valuation
71
What is a bond?
A long-term debt instrument in which a
borrower agrees to make payments of
principal and interest, on specific dates, to
the holders of the bond.
Issued by governments, state agencies
Week Three Part I
Term Structure & Interest Rates
Determinants of Market
Interest Rates
Nominal Interest Rate (r): Interest rate
that is observed in the marketplace
Basic Equation:
r = RR + IP + DRP + MRP + LP
Real Rate of Interest (RR): Interest rate
on
Week 1 Part III
Time Value of Money
Chapter Outcomes
Explain what is meant by the time
value of money
Describe the concept of simple
interest and the process of
compounding
Describe discounting to determine
present values
2
Chapter Outcomes (continued)
Fi
Econ 215 Week 1 Part I
Name
Major
Class standing
What do you hope to learn in this class?
Importance of Financial
Markets
This is important. For example, if you save
$1,000, but there are no financial markets,
then you can earn no return on this
might as
Econ215 Week 1Part II
Overview of the Financial
System
PolicyMakersPresident,
Congress&U.S.TreasuryFederalReserve
Board
Role:Passlaws&setfiscal&monetarypolicies
MonetarySystemFederal
ReserveCentralBankCommercial
BankingSystem
Role:Create&transfermoney
ht
Chapter18:MarketsforCommonStock:StructureandOrganization
Multiproductexchangesnotonlycommonstockistradedbutalsootherfinancialinstrumentssuchasbonds,options,and
futures
Offexchangemarkets
TwofundamentaldifferencesamongUSandinternationalexchanges:
o
o
(1)Me
Name:
ID:
Homework Four
1. Stacy purchased a stock last year and sold it today for $3 a share more than her
purchase price. She received a total of $0.75 in dividends. Which one of the following
statements is correct in relation to this investment?
A. The
Topic 6: Properties of the Normal distribution, Z-scores, The Central Limit
Theorem and the Distribution of X-bar
Objectives:
Know the basic properties of a normal distribution
How & why we compute the z-score (no of std deviations from expected)
What is
Topic 5: Box plots and Histograms
Objective:
The Box plot is a graphical summary of the Five-number summary
The histogram provides a graphical measure of the symmetry of the
distribution
The choice of bin width does affect the shape of the histogram
the h
Lab Activity 7
Problem
The Transportation Notes section of the Sunday Chicago Tribune (2/11/1996) reported on
a new all-season radial replacement tire called Innitred. According to the article, Goodyear
says it expects the Innitred to last more than 80; 0
Lab Activity 6
Problem
The following sample data were used to calculate an average rent of one-bedroom apartments in
Atlanta. Use a computer program to calculate a 95 percent condence interval for the average
rent of all one-bedroom apartments in Atlanta.
Lab Activity 5
Problem
In Testing the Science of Intelligence Newsweek (October 24, 1994), Geofrey Cowley reported
that IQs for a whole population can be arrayed on a single graph. Roughly two-thirds of all
Americans fall between 85 and 115, in the fat mi
Lab Activity 4
Problem
In Testing the Science of Intelligence Newsweek (October 24, 1994), Geofrey Cowley reported
that IQs for a whole population can be arrayed on a single graph. Roughly two-thirds of all
Americans fall between 85 and 115, in the fat mi
Lab Activity 3
Problem
A Washington Post syndicated article (January 29, 1995) reported on the riskiness of various
investment funds. Five sample percentage annual returns were reported for American Heritage
Mutual Fund (31, 96, 19, 41, and 35), and Valle
Risk, Return and
Financial Markets
1.There is a reward for bearing risk
2.The greater risk ,the greater potential
return!
12-1
This is called: The
Risk/Return Trade-of
12-2
Dollar Returns
Total dollar return =
income from
investment
+ capital gain (or los
Week Three Part II
Stock Valuation
Features of Common Stock
Common Stock Valuation
Features of Preferred Stock
The Stock Markets
Common Stock
Common stockholders are the owners of the firm.
They elect the firms board of directors, who in
turn appoint the
Chapter 15: Treasury and Agency Securities Markets
Treasury securities are issued by the U.S. Department of the Treasury and are backed by the
full faith and credit of the US government no credit risk
Market for Treasury Securities
Two factors for promin
Chapter9:PropertiesandPricingofFinancialAssets
PropertiesofFinancialAssets
1.
Moneyness:financialassetswhichareusedasamediumofexchangeorinsettlementoftransactions;money
a.
b.
c.
2.
Moneyconsistsofcurrencyandallformsofdepositsthatpermitcheckwriting
Nearmon
Economics 215
Stocks, Bonds, and Financial Markets
Dr. Kelli Lanier
Study Guide
The International Financial System Chapter 16
_
Note: This study guide will help in the preparation of classwork assignments,
midt
Economics 215
Stocks, Bonds, and Financial Markets
Dr. Kelli Lanier
Study Guide
Interest Rates: Why They Change Chapter 4
_
Note: This study guide will help in the preparation of classwork assignments,
midte
Economics 215
Stocks, Bonds, and Financial Markets
Dr. Kelli Lanier
Study Guide
Interest Rates: Risk and Term Structure Chapter 5
_
Note: This study guide will help in the preparation of classwork assignments
Economics 215
Stocks, Bonds, and Financial Markets
Dr. Kelli Lanier
Study Guide Answers
The Bond Market Chapter 12
_
Note: This study guide will help in the preparation of classwork assignments,
midterms, and
APPLE INC
Exchange
NMS
Day Range
103.91 - 105.30
52 Week Range
92.00 - 134.54
Open
104.01
Avg. Vol
38,672,500
Market Cap
578.58B
Short ratio
1.63
PE ratio
11.10
PEG Ratio
1.08
Earnings Share
9.40
Looking into Apple Inc growth rates, revenue grew by 1.71 %
Economics 215
Stocks, Bonds, and Financial Markets
Dr. Kelli Lanier
Study Guide - Answers
The Money Markets Chapter 11
_
Note: This study guide will help in the preparation of classwork assignments,
midterms,
Economics 215
Stocks, Bonds, and Financial Markets
Dr. Kelli Lanier
Study Guide Answers
Are Financial Markets Efficient? Chapter 06
_
Note: This study guide will help in the preparation of classwork assignments,
midterms, and final examinations. However,
Economics 215
Stocks, Bonds, and Financial Markets
Dr. Kelli Lanier
Study Guide
The Stock Market Chapter 13
_
Note: This study guide will help in the preparation of classwork assignments,
midterms, and final