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Complete the table below.  Round to the nearest hundredth, if necessary.  (2 decimal places) Class Limits Class Boundaries Frequency Midpoint Relative Frequency Cumulative Frequency 2 – 14 – 4       15 – 27 – 7       28 – 40 – 17       41 – 53 – 12       54 – 66 – 9       X X ∑ f =  X X X (10 points) Note: Find lower and upper class boundaries, midpoint of each class, rel. f, and cumulative f.  Do not fill in the boxes with “X” in them. Based on the table above, sketch the frequency histogram (***5 points***) with the frequency of each class labeled on the vertical axis and the midpoint of each class labeled on the horizontal axis.

What is the price you just paid for this bond? 

What will be the price of the bond when you sell it at the end of year four? 

The interest rate charged by banks with excess reserves at a Federal Reserve Bank to banks needing overnight loans to meet reserve requirements is called the __________.

You own a semi-annual bond that will mature in 8 years, but is callable in three years with a penalty of $50.  The coupon rate is 5%, and it has a face value of $1,000.  If it is currently selling for $1,085, what is the yield to call on this bond?

Formulas for Exam One   Forward Spot Rate = (1+YTMn)n /(1+YTMn-1)n-1 -1   NAV = (MVassets – Liabilities) / Shares Out   Bond Price = PMT1/(1+YTM)1 + PMT2/(1+YTM)2 +…..PMTn/(1+YTM)n + FV/(1+YTM)n   ΔP/P = -D[ΔY/(1+Y)]   Duration of Perpetuity = (1+Y)/Y   Current Margin = (MV – amount borrowed) / MV   MC = $borrowed / [(1 – Margin) X #Shares]   Short Margin = (Initial cash – MV of Shares) / MV of shares   Short MC = Initial cash position / [(1+Margin) X #Shares]

You are the manager of a fixed income pension fund.  You currently expect that interest rates are going to increase significantly over the next year.  Using the concept of duration, what types of bonds should you begin to buy?

You short-sell 200 shares of Tuckerton Trading Co., now selling for $52.50 per share.  You also place a stop-buy order at $60. What is your maximum possible loss?

______________ are the least organized markets.

Under firm commitment underwriting the ______ assumes the full risk that the shares cannot be sold to the public at the stipulated offering price.