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

A simple random sample of 49 Economics majors reported the number of hours that they spend per week studying economics (including lectures, sections, office hours and working on homework). The sample mean was 23 hours/week and the sample standard deviation was 7 hours/week. Assuming that the number of hours/week that economics majors spend studying economics has an approximately normal distribution. .. a. (2 pts) Estimate the proportion of economics majors that spend less than 30 hours per week studying economics. Explain your reasoning, briefly. b. (4 pts) Construct a 95%-confidence interval for the mean number of economics- studying hours/week for all economics majors.How is economics different from sociology? O Economics does not rely on empirical observations. O Economics only focuses on macro level processes. O Economics is not a social science. O Economics concentrates on a single social institution.PL Which of the following statements correctly differentiates between positive and normative A. Positive economics is based on judgments, whereas normative economics is not. OB. Positive economics describes what people ought to do, whereas normative econon O C. Positive economics is descriptive, whereas normative economics is advisory. O D. Positive economics can only be applied to microeconomics, whereas normative ecodifferentiates between positive and normative economics? gments, whereas normative economics is not. t people ought to do, whereas normative economics describes what people actually do whereas normative economics is advisory. pplied to microeconomics, whereas normative economics can be applied to both microeconoWhich of the following graphs best describes the expected changes in the market for economics classes if a new law is passed that requires all undergraduate students at 4 year degree granting universities to take an economics class, while at the same time the government subsidizes the production of economics professors by supporting PhD students in economics? $ Price $ Price D1 D 0 Quantity Quantity Graph A Graph B $ Price $ Price D DJ D O Q,=0; Quantity Quantity Graph C Graph D