[30/03, 15:10] Bro Edu: Ali Company and Bill Company entered into a semi-annual pay plain vanilla interest rate swap with a nominal value of $8,000,000. Bill offered to pay Ali a fixed annual rate of 2.75% (with semi-annual compounding). The remaining life of the swap is nine months. Assume the six-month LIBOR rate observed three months ago was 2.6% with semi-annual compounding. Today's three and nine month LIBOR rates are 2.526% and 2.846% (with continuous compounding). The implied forward rate is 3.0287% with semi-annual compounding. What is the value of the swap to Bill Company using the FRA methodology? Do not round intermediate calculations.

A.$4,950

B.$2,009

C.-$1,407

D.$5,613

Ali Company and Bill Company entered into a semi-annual pay plain vanilla interest rate swap with a nominal value of $8,000,000. Bill offered to pay Ali a fixed annual rate of 2.75% (with semi-annual compounding). The remaining life of the swap is nine months. Assume the six-month LIBOR rate observed three months ago was 2.6% with semi-annual compounding. Today's three and nine month LIBOR rates are 2.526% and 2.846% (with continuous compounding). The implied forward rate is 3.0287% with semi-annual compounding. What is the present value of the net cash flow (or payoff) at nine months point to Bill Company?

A.$4,556

B.$4,913

C.$8,904

D.$10,913

[30/03, 15:10] Bro Edu: Flag

Indicate whether each phrase is more descriptive of financial accounting or managerial accounting.

(a) May be subjective

Financial accounting

Managerial accounting

(b) Often used to obtain financing

Financial accounting

Managerial accounting

(c) Typically prepared quarterly or annually

Financial accounting

Managerial accounting

(d) May measure time or customer satisfaction

Financial accounting

Managerial accounting

(e) Future oriented

Financial accounting

Managerial accounting

(f) Has a greater emphasis on cost-benefit analysis

Financial accounting

Managerial accounting

(g) Keeps records of assets and liabilities

Financial accounting

Managerial accounting

(h) Highly aggregated statements

Financial accounting

Managerial accounting

(i) Must conform to external standards

Financial accounting

Managerial accounting

(j) Special-purpose reports

Financial accounting

Managerial accounting

(k) Decision-making tool

Financial accounting

Managerial accounting

(l) Income statement, balance sheet, and statement of cash flows

Financial accounting

Managerial accounting

For each of the following transition matrices, determine whether the Markov chain with that transition matrix is regular: (1) Is the Markov chain whose transition matrix whose transition matrix is 1 0.2 0.8 0 0 regular? (Yes or No) (2) Is the Markov chain whose transition matrix whose transition matrix is 0 1 0.1 0.4 0.5 0 1 regular? (Yes or No) (3) Is the Markov chain whose transition matrix whose transition matrix is 0 0 0.8 0 0.2 0.8 0.2 0 regular? (Yes or No) (4) Is the Markov chain whose transition matrix whose transition matrix is 0 1 0.8 0 0.2 0 1 0 regular? (Yes or No)What is the difference between univariate data and bivariate data? Choose the correct answer below. 0 A. In univariate data, a single variable is measured on each individual. In bivariate data, two variables are measured on each individual. 0 B. In univariate data, there are only positive values and zeros. In bivariate data, there are positive values, negative values, and zeros. O C. In univariate data, there is one mean. In bivariate data, there are two means. 0 D. In univariate data, the data are qualitative. In bivariate data, the data are quantitative. Different people view things and outcomes differently. This is referred to as... Select one: O scarcity macroeconomics subjective values microeconomics rationing free goods rational decision-making scarce goods economics normative economics positive economics O ceteris paribus