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A fixed coupon bond has 15 years to maturity and a coupon rate of 7.5%  Coupon payments are made semi-annually.  Assuming  a current market rate of 7%, what is the present value of the bond?  (HINT – assume this is a $1,000 bond) * Draw a timeline of show all cashflows for this bond.  Submit the timeline with your hand-written work. *

ABC Corporation just announced a 2-for-1 stock split.  Prior to the split the company had a market value of $3.2 billion with 40 million shares outstanding.  The split conveys no new information about the ABC Corporation. To receive full credit or to earn partial credit, please do your work on the hand-written page.  (Submit with all your hand-written work as the last problem on the exam.)  Prior to the split, what was the price per share of ABC Corporation stock? [a] What is the value of ABC Corporation after the split? [b] How many shares will be outstanding after the split? [c] What will the price per share be after the split? [d]  

Third page of work (if needed)   Please write your name at the top of the submission and make sure the problems are clearly labeled. 

The Covid-19 pandemic created considerable concern for the U.S. economy.  Actions were taken by the Federal Reserve during and shortly after the pandemic which dramatically impact the management of financial institutions.  Identify specific actions that were taken in 2020 in regard to: Reserve requirements Open market transactions Interest rates Ge specific with your answers and include the possible downside to each action taken.  

A fixed coupon corporate bond with 30 years to maturity has a price quote of 93.5, with payments made annually.  What coupon rate would a company expect for this bond if you expect the yield to be about 8.5%? (hint – Assume the quote should be used as percentage of par.  You do not need to consider this bond as quoted in 8ths)  * Please show your work clearly on your hand-written page.  Partial credit will be given if I can follow your work. *  

ABC Corporation just announced a 2-for-1 stock split.  Prior to the split the company had a market value of $2.1 billion with 30 million shares outstanding.  The split conveys no new information about the ABC Corporation. To receive full credit or to earn partial credit, please do your work on the hand-written page.  (Submit with all your hand-written work as the last problem on the exam.)  Prior to the split, what was the price per share of ABCorporation stock? [a] What is the value of ABC Corporation after the split? [b] How many shares will be outstanding after the split? [c] What will the price per share be after the split? [d]

A fixed coupon bond with 20 years to maturity has a coupon rate of 7.7%, with payments made annually.  What is the price the company would expect to see for this bond if it expects the yield to be 9%? * Draw a timeline of show all cashflows for this bond.  Submit the timeline with your hand-written work. * 

On a blank piece of paper, draw a commercial bank balance sheet.    Show the following items on the balance sheet, clearly identifying which are assets and which are liabilities for the bank: Deposits Borrowings from the Fed Required Reserves Loans Securities Excess Reserves Other Borrowings Bank Capital   Upload a hand written balance sheet.  (Write your name on the page). Include this balance sheet on the same piece of paper showing hand written work for previous problems (other than the loan amortization chart you have already submitted.)

Complete the following loan amortization by hand.  Please draw a table like the one below on your blank page and fill in each blank. You will take a picture of this chart and upload your completed chart at the end of the exam. Please show your work. Please do not forget to calculate the total finance (interest) charge for this loan.  You should enter the total interest (finance) charge in the blank prompt for this question.     You are considering purchasing a house for $285,000.  Do a three month loan amortization and calculate total finance charge.  Assume a 20 % down payment.    20 year 5.00% loan with one and a half discount points.   Beginning Balance Payment Principle Interest Ending Balance                                       FILL IN THE BLANK FOR.    Total finance charge:_____________________

Identify the significance and major provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.  Fully explain each provision you identify.