In a particular region, meteorologists have been studying hi…

In a particular region, meteorologists have been studying historical rainfall patterns to understand the climate changes over the past centuries. Data from various locations in the region provided a mean annual rainfall of 1,302 mm with a standard deviation of 23 mm. The distribution of rainfall was mound-shaped and symmetrical about the mean. Utilizing the empirical rule, estimate the range of rainfall centered around the mean in which approximately 68% of the data (rainfall) are likely to be found.

A portfolio contains the following bonds:                  …

A portfolio contains the following bonds:                                                                                Bond        Market Value        Duration                                          (In $ millions)                                A                     $[x]                        [y]                        B                     $18                         4                        C                     $20                         3                                                                If the market rate of interest rises from 8% to 8.5%, calculate the amount of change in the Market Value of the portfolio.                                        Express the result in dollars and cents.                                        

Government economists have forecasted one-year T-Bill rates…

Government economists have forecasted one-year T-Bill rates for the following five years as:                                Year        Rate                         1           4.25%                         2           5.15%                         3           5.50%                         4           6.25%                         5           7.10%                                                        You have a liquidity premium of 0.25% during the period ending at the end of Year 2 (note:  the liquidity premium is NOT additive for Year 1 and Year 2),  and of 0.40% thereafter (note:  the liquidity premium is NOT additive during that period).                              Determine your required interest rate on a 4-year bond.  Round your answer to 2 decimal places.