D O NO T Ta KE IF YOU CANNOT ANSWEAR ALL THE QUESTION AS SUPPOSED OR I WILL RATE UNHELPFUL AND REPORT FOR PLAG Peru Domestic: a bond is issued in the US Global: a bond is issued in the US and foreign markets Eurobonds: a bond denominated in USD is issued in the foreign market. You need to estimate the probabilities that a bond with the following characteristics is issued in each market: 4 maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no callable: yes puttable: no. According to the analysis, what is the most likely market of issue of this bond? In the analysis, estimate multinomial logit regression model and briefly discuss the determinants of "Market of Issue." 4 Estimating yield for a hypothetical bond (7 points) Lastly, you need to estimate the yield for a bond with the following characteristics: maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics 5 domicile: USA convertible: no callable: yes puttable: no market of issue: Global. To ensure that the results are robust, estimate at least 3 regression models (e.g., in the first regression model, one includes amount in $, in the second model, one uses the natural logarithm of amount in $, and the third model features something else). Briefly discuss the determinants of yield. Using one of the regression models, compute two additional yields: 1. the amount is $1,000,000,000, other bond characteristics the same as above 2. S&P credit rating is AA, other bond characteristics the same as above (i.e., amount: $750,000,000 etc.). Are the results the same as the main estimate? What would happen if the furnace was powered continuously and in an open loop? Assuming, despite everything, that we apply a 100 V input to the electric furnace in open loop. b-after what time would a temperature of 1200 C be reached in the oven? We decide to control the temperature in the electric furnace by using a temperature sensor which delivers a voltage u(t). The sensor is governed by the differential equation u(t) + 2 = 510-30(t) - du dt We also interduce a gain K in the feedforward loop. c - Draw a block diagram of the control loop and determine the closed loop transfer function. Determine the stability conditions of this system. d - Imposing a phase margin Ag = 45, determine the value of the rise time in the closed loop system. e - We obviously want to regulate the temperature of the electric furnace at 1,200 C. Determine the value of the setpoint to be introduced into the system. With the system tuned to obtain a phase margin Ap = 45, what is the maximum temperature reached in the electric furnace? Conclude. f- we would like to limit the overshoot at 10% , determine the raise time and how many object can be treated in 24 hours. d - We want to reach a processing rate of 100 objects per 24 hours. Determine the value of K that allow us to meet this objective. What is the phase margin then? What type of corrector should be added to the feedforward loop in order to limit the overshoot at 10% while maintain the desired processing rate1 Sample and description statistics (5 points) From Eikon download bond issues with the following characteristics: 1. Sector: Consumer Goods, Manufacturing, Telephone, Transportations 2. Domicile: United States 3. Amount Outstanding: > 100,000,000 4. Coupon: > 0% 2 5. Maturity: > 1-October-2024 6. S&P Long-term Issue Credit Rating: > D. 7. make sure that the following filters are visible on the left hand side: (a) Currency (b) Convertible (c) Callable (d) Putable (e) Seniority (f) Market of Issue You should end up with more than 2,000 bonds; thus, you will need to download the data to Excel in batches (e.g., first, download small bond issues, then medium, and lastly with large bond issues). Discuss briefly your sample, including the number of observations, outliers. Provide the descriptive statistics of the sample. How you choose to d is entirely at your discretion. However, it is recommended that you consider using both summary statistic and graphical methods (this task should include at least one pie chart, one histogram, and one scatter plot) while also noting any peculiarities within the data set. You should put more emphasis on variables that are the dependent variables in the regressions estimated in other tasks. 2 Which bonds are more likely to include "a call" feature? (7 points) A bond issuer can repurchase its bonds before their maturity if they include a call feature. Firstly, identify statistically significant characteristics of callable bonds. You may consider, issue size, maturity, industry, credit rating, and other variables available in Eikon. Secondly, compute the average of the individual marginal effects of the amount outstanding on the probability that a bond includes a call feature. Thirdly, estimate the probability that a bond with the following characteristics includes a call feature: 3 maturity: 10 years coupon: 2.5% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no market of issue: Global puttable: no. Do the results suggest that this bond is callable or not? In this task, you are expected to use a logit regression analysis. To ensure that the results are robust, estimate at least two regression models (e.g., in the first regression model, one includes amount in $ and in the second model, one uses the natural logarithm of amount in $). 3 Which bonds are more likely to be issued in the domestic and foreign markets? (6 points) "Market of Issue" can take the following values: Why?1 Sample and description statistics (5 points) From Eikon download bond issues with the following characteristics: 1. Sector: Consumer Goods, Manufacturing, Telephone, Transportations 2. Domicile: United States 3. Amount Outstanding: > 100,000,000 4. Coupon: > 0% 2 5. Maturity: > 1-October-2024 6. S&P Long-term Issue Credit Rating: > D. 7. make sure that the following filters are visible on the left hand side: (a) Currency (b) Convertible (c) Callable (d) Putable (e) Seniority (f) Market of Issue You should end up with more than 2,000 bonds; thus, you will need to download the data to Excel in batches (e.g., first, download small bond issues, then medium, and lastly with large bond issues). Discuss briefly your sample, including the number of observations, outliers. Provide the descriptive statistics of the sample. How you choose to ds is entirely at your discretion. However, it is recommended that you consider using both summary statistic and graphical methods (this task should include at least one pie chart, one histogram, and one scatter plot) while also noting any peculiarities within the data set. You should put more emphasis on variables that are the dependent variables in the regressions estimated in other tasks. 2 Which bonds are more likely to include "a call" feature? (7 points) A bond issuer can repurchase its bonds before their maturity if they include a call feature. Firstly, identify statistically significant characteristics of callable bonds. You may consider, issue size, maturity, industry, credit rating, and other variables available in Eikon. Secondly, compute the average of the individual marginal effects of the amount outstanding on the probability that a bond includes a call feature. Thirdly, estimate the probability that a bond with the following characteristics includes a call feature: 3 maturity: 10 years coupon: 2.5% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no market of issue: Global puttable: no. Do the results suggest that this bond is callable or not? In this task, you are expected to use a logit regression analysis. To ensure that the results are robust, estimate at least two regression models (e.g., in the first regression model, one includes amount in $ and in the second model, one uses the natural logarithm of amount in $). 3 Which bonds are more likely to be issued in the domestic and foreign markets? (6 points) "Market of Issue" can ta Which choice best describes, the processes leading to the formation of a continental volcanic arc, in chronological order? (Beware of error in F3: the words between brackets "oceanic ridge" should be replaced with "continental volcanic arc"). 1. " wet" seafloor basalt subducts and dehydrates, water induces flux melting of mantle peridotite above, basaltic magma ascends and forms volcanoes. 2. flux melting, magma ascends to the surface forming volcanoes, peridotite rises to shallow depth and melts, subduction. 3. magma ascends, decompression melting of peridotite, peridotite pushes the ocean floor basalt open and forms volcanoes. 4. peridotite ascends, decompression melting forms basaltic magma, magma pushes and cracks the ocean floor basalt open, and erupts forming volcanoes Lab manual (Busch, 9th Edition) Activity 2.3: Using Earthquakes to identify Plate boundaries 15. Refer to the figure in activity 2.3. Which of the following places represent a Benioff Zone? (Hint: refer back to the notes for unit 3) 1. 10S, 110W 2. 0, 90W 3. 0, 80W 4. 20S, 100W 16. The Benioff zone is associated with which type of plate boundary? 1. Divergent 2. Convergent (Continent-Continent) 3. Convergent (Continent-Ocean) 4. Transform Lab manual (Busch, 9th Edition) Activity 2.4: Analysis of Atlantic Seafloor Spreading To solve questions in this section, review how to work with graphic scales and the metric system in Unit 2. Use a ruler to measure the distance between features and determine the equivalent distance in ke the following values: Domestic: a bond is issued in the US Global: a bond is issued in the US and foreign markets Eurobonds: a bond denominated in USD is issued in the foreign market. You need to estimate the probabilities that a bond with the following characteristics is issued in each market: 4 maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no callable: yes puttable: no. According to the analysis, what is the most likely market of issue of this bond? In the analysis, estimate multinomial logit regression model and briefly discuss the determinants of "Market of Issue." 4 Estimating yield for a hypothetical bond (7 points) Lastly, you need to estimate the yield for a bond with the following characteristics: maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics 5 domicile: USA convertible: no callable: yes puttable: no market of issue: Global. To ensure that the results are robust, estimate at least 3 regression models (e.g., in the first regression model, one includes amount in $, in the second model, one uses the natural logarithm of amount in $, and the third model features something else). Briefly discuss the determinants of yield. Using one of the regression models, compute two additional yields: 1. the amount is $1,000,000,000, other bond characteristics the same as above 2. S&P credit rating is AA, other bond characteristics the same as above (i.e., amount: $750,000,000 etc.). Are the results the same as the main estimate? Why?1 Sample and description statistics (5 points) From Eikon download bond issues with the following characteristics: 1. Sector: Consumer Goods, Manufacturing, Telephone, Transportations 2. Domicile: United States 3. Amount Outstanding: > 100,000,000 4. Coupon: > 0% 2 5. Maturity: > 1-October-2024 6. S&P Long-term Issue Credit Rating: > D. 7. make sure that the following filters are visible on the left hand side: (a) Currency (b) Convertible (c) Callable (d) Putable (e) Seniority (f) Market of Issue You should end up with more than 2,000 bonds; thus, you will need to download the data to Excel in batches (e.g., first, download small bond issues, then medium, and lastly with large bond issues). Discuss briefly your sample, including the number of observations, outliers. Provide the descriptive statistics of the sample. How you choose to is entirely at your discretion. However, it is recommended that you consider using both summary statistic and graphical methods (this task should include at least one pie chart, one histogram, and one scatter plot) while also noting any peculiarities within the data set. You should put more emphasis on variables that are the dependent variables in the regressions estimated in other tasks. 2 Which bonds are more likely to include "a call" feature? (7 points) A bond issuer can repurchase its bonds before their maturity if they include a call feature. Firstly, identify statistically significant characteristics of callable bonds. You may consider, issue size, maturity, industry, credit rating, and other variables available in Eikon. Secondly, compute the average of the Subduction of the Juan de Fuca Plate under the North American Plate brings rocks from the ocean floor and marine sediment to depths where partial melting ensues due to the increased temperature and the influence of water. 4. Migration of the North American Plate over a hot spot is responsible for the Cascade Range volcanoes. Part 2- Google Earth The exercises that follow use Google Earth. For each question (or set of questions) paste the location that is given into the "fly to" box. Examine each location at multiple eye altitudes and differing amounts of tilt. For any measurements use the ruler tool, this can be accessed by clicking on the ruler icon above the image. Google Earth: Hawaiian Islands Fly to Hawaii. Please review the section on Hotspots and the Hawaiian Islands in the Lab manual and in the unit notes. Rocks have been dated on each of the Hawaiian Islands and their ages are as follows: Big Island- 0 (active), Maui - 1.1 million, Kauai- 4.7 million, Nihoa (23 03 32.79N 161 55 11.94W)- 7.2 million years 28. Consider the ages and positions of the islands listed above along with what you know about plate tectonics and hotspots. In what general direction is the Pacific Plate moving? 1. Northwest 2. Southeast 3. Northeast 4. Southwest 29. How fast was the Pacific plate moving during the last 1.1 million years between the formation of the Big Island and Maui in cm/year? 1. ~5 cm/year 2. ~10 cm/year 3. ~15 cm/year 4. ~20 cm/year 30. How fast was the Pacific plate moving from 7.2 million years ago to 4.7 million years ago between the formation of Kauai and Nihao in cm/year? 1. ~5 cm/year 2. ~10 cm/year 3. ~15 cm/year 4. ~20 cm/year 31) individual marginal effects of the amount outstanding on the probability that a bond includes a call feature. Thirdly, estimate the probability that a bond with the following characteristics includes a call feature: 3 maturity: 10 years coupon: 2.5% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no market of issue: Global puttable: no. Do the results suggest that this bond is callable or not? In this task, you are expected to use a logit regression analysis. To ensure that the results are robust, estimate at least two regression models (e.g., in the first regression model, one includes amount in $ and in the second model, one uses the natural logarithm of amount in $). 3 Which bonds are more likely to be issued in the domestic and foreign markets? (6 points) "Market of Issue" can take the following values: Domestic: a bond is issued in the US Global: a bond is issued in the US and foreign markets Eurobonds: a bond denominated in USD is issued in the foreign market. You need to estimate the probabilities that a bond with the following characteristics is issued in each market: 4 maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no callable: yes puttable: no. According to the analysis, what is the most likely market of issue of this bond? In the analysis, estimate multinomial logit regression model and briefly discuss the determinants of "Market of Issue." 4 Estimating yield for a hypothetical bond (7 points) Lastly, you need to estimate the yield for a bond with the following characteristics: maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics 5 domicile: USA convertible: no callable: yes puttable: no market of issue: Global. To ensure that the results are robust, estimate at least 3 regression models (e.g., in the first regression model, one includes amount in $, in the second model, one uses the natural logarithm of amount in $, and the third model features something else). Briefly discuss the determinants of yield. Using one of the regression models, compute two additional yields: 1. the amount is $1,000,000,000, other bond characteristics the same as above 2. S&P credit rating is AA, other bond characteristics the same as above (i.e., amount: $750,000,000 etc.). Are the results the same as the main estimate? Why?1 Sample and description statistics (5 points) From Eikon download bond issues with the following characteristics: 1. Sector: Consumer Goods, Manufacturing, Telephone, Transportations 2. Domicile: United States 3. Amount Outstanding: > 100,000,000 4. Coupon: > 0% 2 5. Maturity: > 1-October-2024 6. S&P Long-term Issue Credit Rating: > D. 7. make sure that the following filters are visible on the left hand side: (a) Currency (b) Convertible (c) Callable (d) Putable (e) Seniority (f) Market of Issue You should end up with more than 2,000 bonds; thus, you will need to download the data to Excel in batches (e.g., first, download small bond issues, then medium, and lastly with large bond issues). Discuss briefly your sample, including the number of observations, outliers. Provide the descriptive statistics of the sample. How you choose to is entirely at your discretion. However, it is recommended that you consider using both summary statistic and graphical methods (this task should include at least one pie chart, one histogram, and one scatter plot) while also noting any peculiarities within the data set. You should put more emphasis on variables that are the dependent variables in the regressions estimated in other tasks. Recommendation Systems Criteria Points Exploratory Data Analysis Machine Learning Question 3 - The IFRS Conceptual Framework and Creative Accounting (40 marks) This question aims to elicit your understanding on the IFRS conceptual framework and creative accounting by analysing an accounting scandal of an IFRS compliance company of your choice (other than the ones explained on lecture and in workshop). Based on a review of the reports and materials published online and in press about the scandal, you are required to analyse the accounting scandal and the consequential company failure. In your analysis, you need to answer the following questions: 1. What elements of the IFRS Conceptual Framework (March 2018 Version) that this company did not comply or complied poorly? In other words, what is the nature of the scandal, expressed by its non-compliance of the IFRS Conceptual Framework? - 10 marks (LOs 1 & 4) 2. Which fundamental and enhancing qualitative characteristics the financial information reported by this company have not, or weakly, conveyed in its financial reporting, resulted in the company failure? - 10 marks (LOs 1 & 4) 3. Use Figure 1 as a map, to identify the specific accounts manipulation problems of your chosen accounting scandal and the seriousness of them (e.g. a fraud or creative accounting, illegal or unethical). Cite the relevant research literature where necessary. - 10 marks (LOs 2 & 4) 4. Summarise the ethical implications and impacts of the scandal on society, to reflect the role of ethics in financial reporting. - 10 marks (LOs 2 & 4) Your answer is to be your own work. You are to use Harvard referencing style to reference any material you have directly or indirectly taken from other sources. Accounting standards may be cited by simply giving the abbreviation for the standard (IAS, IFRS, etc.), its number and the paragraph to which you refer. There is no lower or upper word count limits for your answers to the questions. Marks will be awarded according to the Undergraduate (UG) Assessment Criteria as attached. Your submission will be checked for plag automatically using the Turn-it-in. Figure 1. A proposed framework for understanding accounting manipulation practices Source: H. Stolowy, G. Breton, Accounts Manipulation: A Literature Review and Proposed Conceptual Framework, 13.01.2003, pg 35 LOs 1-4 LO1: Appraise financial accounting knowledge using relevant techniques informed by contemporary research and current professional practice. LO2: Evaluate the ethical implications of financial accounting disclosure practices for various external user groups. LO3: Communicate financial accounting information, ideas, problems and solutions to specialist and non-specialist audiences. LO4: Apply critical thinking skills to various financial accounting and analysis scenarios.The MA model is giving a much lower AIC in comparison to the AR model, implying that the MA model fits the training data better. ARMA Model We will be using an ARIMA model with p = 1 and q = 1 (as observed from the ACF and PACF plots) and d = 0 so that it will work as an ARMA model. Question 5: Fit and predict the shifted series with the ARMA model and calculate the RMSE. Also, visualize the time series and observations. (2 Marks) In [66]: from statsmodels.tsa.arima.model import ARIMA plt.figure(figsize = (16, 8)) model_ARMA = ARIMA(df_shift, order=(1, 0, 1)) # Using p = 1, d = 0, q = 1 and apply ARIMA function on df_shift series results_ARMA = model_ARMA.fit() # Fit the model plt.plot(df_shift) plt.plot(results_ARMA.fittedvalues, color = 'red') plt.title('ARMA Model - RMSE: %.4f'% mean_squared_error(results_ARMA.fittedvalues, df_shift['close'], squared = False)) plt.show()As observed earlier, most of the predicted values on the training data are very close to the actual values except for the dip in stock prices in 2015. On the test data, the model can correctly predict the trend of the stock prices, as we can see that the blue line appears to be close to the actual values (cyan blue), and they both have an upward trend. However, the test predictions are not able to identify the volatile variations in the stock prices over the last two years.Let's test the RMSE of the transformed predictions and the original value on the training and testing data to check whether the model is giving a generalized performance or not.Question 9: Check the RMSE on the original train and test data and conclusion from the above analysis. (4 Mark Your diagram should include: Table Names (for each entity) Attributes (first name, last name, city, etc.) Primary Keys Foreign keys Relationships Field types (text, currency, numeric, date) Your tables should be should be normalized (first, second and third normal forms)You can use the attached form or upload your tables in Excel or nd link them in an Access database file. For information on how to use Word to nd ERD, go toThe electric furnace is governed by the differential equation de + 2000 = 0.020(e) Questions a - determine the following - Open loop transfer function G(s) of the electric furnace. - Static gain. - What would happen if the furnace was powered continuously and in an open loop? Assuming, despite everything, that we apply a 100 V input to the electric furnace in open loop. b-after what time would a temperature of 1200 C be reached in the oven? We decide to control the temperature in the electric furnace by using a temperature sensor which delivers a voltage u(t). The sensor is governed by the differential equation u(t) + 2 = 510-30(t) - du dt We also interduce a gain K in the feedforward loop. c - Draw a block diagram of the control loop and determine the closed loop transfer function. After reading the introduction to the Plate tectonic exercises in the manual, complete the questions on a hard copy of this Lab Assignment. When finished, transfer your answers to the lab assessment in BB Vista, save each answer individually if you feel that you are not to going to complete the whole assignment in one sitting. Do not press the "FINISH" button until you have filled all the answers and are ready to get it graded. Before the submission deadline, you can open the incomplete lab assignment for modifications as many times as you wish, but you will only be able to submit it once for a grade. Part 1- Lab Manual The exercises that follow are adaptations of the Plate Tectonics exercises contained in the lab manual. Note that the number that precedes the text of the question corresponds to the identifying number of that question in the lab manual. Lab Manual (Busch 9th Edition) Activity 2.8: The Origin of Magma 1. (Question A1, Figure 2.7) According to the continental geothermal gradient, rocks buried 80 km beneath a continent would normally be heated to what temperature? At 80 km depth, rocks will be heated to about _______ degrees Celsius 1. 1500 2. 1000 3. 750 4. 200 2. (Question A2, Figure 2.7) According to the oceanic geothermal gradient, rocks buried 80 km beneath an ocean basin would normally be heated to what temperature? At 80 km depth, rocks will be heated to about _______ degrees Celsius 1. 1500 2. 1000 3. 750 4. 200 3. (Question A3, Figure 2.7) What is the physical state of the peridotite at point X? 1. 100% liquid 2. a mixture of solids and liquid 3. 100% solid 4. Determine the stability conditions of this system. d - Imposing a phase margin Ag = 45, determine the value of the rise time in the closed loop system. e - We obviously want to regulate the temperature of the electric furnace at 1,200 C. Determine the value of the setpoint to be introduced into the system. With the system tuned to obtain a phase margin Ap = 45, what is the maximum temperature reached in the electric furnace? Conclude. f- we would like to limit the overshoot at 10% , determine the raise time and how many object can be treated in 24 hours. d - We want to reach a processing rate of 100 objects per 24 hours. Determine the value of K that allow us to meet this objective. What is the phase margin then? What type of corrector should be added to the feedforward loop in order to limit the overshoot at 10% while maintain the desired processing rateTemperature control to meet design requirements An electric furnace intended for the heat treatment of objects consists of a closed enclosure heated by an electrical resistance which supplied by a voltage v(t). Ten objects can be treated simultaneously in the furnace. The heat treatment consists of maintaining the objects for 1 hour at a temperature of 1,200 C (regulated in an optimal way because the objects are destroyed if the temperature exceeds 1,400 C). between each two treatments, a time of 24 minutes is necessary to cool the oven and handling of products. The electric furnace is governed by the differential equation de + 2000 = 0.020(e) Questions a - determine the following - Open loop transfer function G(s) of the electric furnace. - Static gain. - What would happen if the furnace was powered continuously and in an open loop? Assuming, despite everything, that we apply a 100 V i1 Sample and description statistics (5 points) From Eikon download bond issues with the following characteristics: 1. Sector: Consumer Goods, Manufacturing, Telephone, Transportations 2. Domicile: United States 3. Amount Outstanding: > 100,000,000 4. Coupon: > 0% 2 5. Maturity: > 1-October-2024 6. S&P Long-term Issue Credit Rating: > D. 7. make sure that the following filters are visible on the left hand side: (a) Currency (b) Convertible (c) Callable (d) Putable (e) Seniority (f) Market of Issue You should end up with more than 2,000 bonds; thus, you will need to download the data to Excel in batches (e.g., first, download small bond issues, then medium, and lastly with large bond issues). Discuss briefly your sample, including the number of observations, outliers. Provide the descriptive statistics of the sample. How you choose to s entirely at your discretion. However, it is recommended that you consider using both summary statistic and graphical methods (this task should include at least one pie chart, one histogram, and one scatter plot) while also noting any peculiarities within the data set. You should put more emphasis on variables that are the dependent variables in the regressions estimated in other tasks. 2 Which bonds are more likely to include "a call" feature? (7 points) A bond issuer can repurchase its bonds before their maturity if they include a call feature. Firstly, identify statistically significant characteristics of callable bonds. You may consider, issue size, maturity, industry, credit rating, and other variables available in Eikon. Secondly, compute the average of the individual marginal effects of the amount outstanding on the probability that a bond includes a call feature. Thirdly, estimate the probability that a bond with the following characteristics includes a call feature: 3 maturity: 10 years coupon: 2.5% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no market of issue: Global puttable: no. Do the results suggest that this bond is callable or not? In this task, you are expected to use a logit regression analysis. To ensure that the results are robust, estimate at least two regression models (e.g., in the first regression model, one includes amount in $ and in the second model, one uses the natural logarithm of amount in $). 3 Which bonds are more likely to be issued in the domestic and foreign markets? (6 points) "Market of Issue" can take the following values: Domestic: a bond is issued in the US Global: a bond is issued in the US and foreign markets Eurobonds: a bond denominated in USD is issued in the foreign market. You need to estimate the probabilities that a bond with the following characteristics is issued in each market: 4 maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no callable: yes puttable: no. According to the analysis, what is the most likely market of issue of this bond? In the analysis, estimate multinomial logit regression model and briefly discuss the determinants of "Market of Issue." 4 Estimating yield for a hypothetical bond (7 points) Lastly, you need to estimate the yield for a bond with the following characteristics: maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics 5 domicile: When mantle peridotite melts as a result of being uplifted in the way described in the previous question, the process is called__________ and is likely to happen at ____________. 1. solidus crystallization, divergent boundaries 2. solution, convergent boundaries and hot spots 3. recrystallization melting, hot spots 4. decompression melting, divergent boundaries and hot spots 8. (Question C, Figure 2.7) According to your answers to the previous four questions related to the peridotite at point X being subjected to changes in pressure and temperature, which two processes would lead to melting? 1. decrease in pressure and temperature 2. increase in pressure and temperature 3. decrease in pressure and increase in temperature. 4. increase in pressure and decrease in temperature Lab manual (Busch, 9th Edition) Activity 2.8 part D: A few modifications will allow you to run the experiment described in this section using materials readily available in your home. The hot plate can be replaced by a foil lined frying pan on the stove burner. The two sugar cubes can also be replaced by two teaspoonfuls of sugar; the secret is not to add excessive water to the sample that needs to be wet. Extra water will dissolve the sugar and obscure the interpretation of your results. ll the experiment materials directly on the cool burner to avoid mixing of the two samples when you move the foil. Place on the stove burner the foil lined pan, the two separate heaps of sugar and add the drops of water on one of the heaps. Then turn the stove on at medium heat, and observe. 9. (Question D1) Which sample melted first? 1. the dry sample 2. the wet sample 10. (Question D2) The rapid melting that you observed in the sample that melted first is called "flux melting," because flux is an added component the speeds up a process. What was the flux? 1. sugar 2. water 3. silicates 11. (Question D3, Figure 2.8) The effect of water on peridotite is similar to its effect on the sugar experiment, therefore when peridotite is heated in "wet" conditions, the line of the "wet solidus" would be located to the _____________ USA convertible: no callable: yes puttable: no market of issue: Global. To ensure that the results are robust, estimate at least 3 regression models (e.g., in the first regression model, one includes amount in $, in the second model, one uses the natural logarithm of amount in $, and the third model features something else). Briefly discuss the determinants of yield. Using one of the regression models, compute two additional yields: 1. the amount is $1,000,000,000, other bond characteristics the same as above 2. S&P credit rating is AA, other bond characteristics the same as above (i.e., amount: $750,000,000 etc.). Are the results the same as the main estimate? Why?nput to the electric furnace in open loop. b-after what time would a temperature of 1200 C be reached in the oven? We decide to control the temperature in the electric furnace by using a temperature sensor which delivers a voltage u(t). The sensor is governed by the differential equation u(t) + 2 = 510-30(t) - du dt We also interduce a gain K in the feedforward loop. c - Draw a block diagram of the control loop and determine the closed loop transfer function. Determine the stability conditions of this system. d - Imposing a phase margin Ag = 45, determine the value of the rise time in the closed loop system. e - We obviously want to regulate the temperature of the electric furnace at 1,200 C. Determine the value of the setpoint to be introduced into the system. With the system tuned to obtain a phase margin Ap = 45, what is the maximum temperature reached in the electric furnace? Conclude. f- we would like to limit the overshoot at 10% , determine the raise time and how many object can be treated in 24 hours. d - We want to reach a processing rate of 100 objects per 24 hours. Determine the value of K that allow us to meet this objective. What is the phase margin then? What type of corrector should be added to the feedforward loop in order to limit the overshoot at 10% while maintain the desired processing rateTemperature control to meet design requirements An electric furnace intended for the heat treatment of objects consists of a closed enclosure heated by an electrical resistance which supplied by a voltage v(t). Ten objects can be treated simultaneously in the furnace. The heat treatment consists of maintaining the objects for 1 hour at a temperature of 1,200 C (regulated in an optimal way because the objects are destroyed if the temperature exceeds 1,400 C). between each two treatments, a time of 24 minutes is necessary to cool the oven and handling of products. The electric furnace is governed by the differential equation de + 2000 = 0.020(e) Questions a - determine the following - Open loop transfer function G(s) of the electric furnace. - Static gain. - Your tables should be should be normalized (first, second and third normal forms)You can use the attached form or upload your tables in Excel or nd link them in an Access database file. For information on how to use Word to nd ERD, go toThe electric furnace is governed by the differential equation de + 2000 = 0.020(e) Questions a - determine the following - Open loop transfer function G(s) of the electric furnace. - Static gain. - What would happen if the furnace was powered continuously and in an open loop? Assuming, despite everything, that we apply a 100 V input to the electric furnace in open loop. b-after what time would a temperature of 1200 C be reached in the oven? We decide to control the temperature in the electric furnace by using a temperature sensor which delivers a voltage u(t). The sensor is governed by the differential equation u(t) + 2 = 510-30(t) - du dt We also interduce a gain K in the feedforward loop. c - Draw a block diagram of the control loop and determine the closed loop transfer function. After reading the introduction to the Plate tectonic exercises in the manual, complete the questions on a hard copy of this Lab Assignment. When finished, transfer your answers to the lab assessment in BB Vista, save each answer individually if you feel that you are not to going to complete the whole assignment in one sitting. Do not press the "FINISH" button until you have filled all the answers and are ready to get it graded. Before the submission deadline, you can open the incomplete lab assignment for modifications as many times as you wish, but you will only be able to submit it once for a grade. Part 1- Lab Manual The exercises that follow are adaptations of the Plate Tectonics exercises contained in the lab manual. Note that the number that precedes the text of the question corresponds to the identifying number of that question in the lab manual. Lab Manual (Busch 9th Edition) Activity 2.8: The Origin of Magma 1. (Question A1, Figure 2.7) According to the continental geothermal gradient, rocks buried 80 km beneath a continent would normally be heated to what temperature? At 80 km depth, rocks will be heated to about _______ degrees Celsius 1. 1500 2. 1000 3. 750 4. 200 2. (Question A2, Figure 2.7) According to the oceanic geothermal gradient, rocks buried 80 km beneath an ocean basin would normally be heated to what temperature? At 80 km depth, rocks will be heated to about _______ degrees Celsius 1. 1500 2. 1000 3. 750 4. 200 3. (Question A3, Figure 2.7) What is the physical state of the peridotite at point X? 1. 100% liquid 2. a mixture of solids and liquid 3. 100% solid 4. Determine the stability conditions of this system. d - Imposing a phase margin Ag = 45, determine the value of the rise time in the closed loop system. e - We obviously want to regulate the temperature of the electric furnace at 1,200 C. Determine the value of the setpoint to be introduced into the system. With the system tuned to obtain a phase margin Ap = 45, what is the maximum temperature reached in the electric furnace? Conclude. f- we would like to limit the overshoot at 10% , determine the raise time and how many object can be treated in 24 hours. d - We want to reach a processing rate of 100 objects per 24 hours. Determine the value of K that allow us to meet this objective. What is the phase margin then? What type of corrector should be added to the feedforward loop in order to limit the overshoot at 10% while maintain the desired processing rateTemperature control to meet design requirements An electric furnace intended for the heat treatment of objects consists of a closed enclosure heated by an electrical resistance which supplied by a voltage v(t). Ten objects can be treated simultaneously in the furnace. The heat treatment consists of maintaining the objects for 1 hour at a temperature of 1,200 C (regulated in an optimal way because the objects are destroyed if the temperature exceeds 1,400 C). between each two treatments, a time of 24 minutes is necessary to cool the oven and handling of products. The electric furnace is governed by the differential equation de + 2000 = 0.020(e) Questions a - determine the following - Open loop transfer function G(s) of the electric furnace. - Static gain. - What would happen if the furnace was powered continuously and in an open loop? Assuming, despite everything, that we apply a 100 V i1 Sample and description statistics (5 points) From Eikon download bond issues with the following characteristics: 1. Sector: Consumer Goods, Manufacturing, Telephone, Transportations 2. Domicile: United States 3. Amount Outstanding: > 100,000,000 4. Coupon: > 0% 2 5. Maturity: > 1-October-2024 6. S&P Long-term Issue Credit Rating: > D. 7. make sure that the following filters are visible on the left hand side: (a) Currency (b) Convertible (c) Callable (d) Putable (e) Seniority (f) Market of Issue You should end up with more than 2,000 bonds; thus, you will need to download the data to Excel in batches (e.g., first, download small bond issues, then medium, and lastly with large bond issues). Discuss briefly your sample, including the number of observations, outliers. Provide the descriptive statistics of the sample. How you choose to s entirely at your discretion. However, it is recommended that you consider using both summary statistic and graphical methods (this task should include at least one pie chart, one histogram, and one scatter plot) while also noting any peculiarities within the data set. You should put more emphasis on variables that are the dependent variables in the regressions estimated in other tasks. 2 Which bonds are more likely to include "a call" feature? (7 points) A bond issuer can repurchase its bonds before their maturity if they include a call feature. Firstly, identify statistically significant characteristics of callable bonds. You may consider, issue size, maturity, industry, credit rating, and other variables available in Eikon. Secondly, compute the average of the individual marginal effects of the amount outstanding on the probability that a bond includes a call feature. Thirdly, estimate the probability that a bond with the following characteristics includes a call feature: 3 maturity: 10 years coupon: 2.5% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no market of issue: Global puttable: no. Do the results suggest that this bond is callable or not? In this task, you are expected to use a logit regression analysis. To ensure that the results are robust, estimate at least two regression models (e.g., in the first regression model, one includes amount in $ and in the second model, one uses the natural logarithm of amount in $). 3 Which bonds are more likely to be issued in the domestic and foreign markets? (6 points) "Market of Issue" can take the following values: Domestic: a bond is issued in the US Global: a bond is issued in the US and foreign markets Eurobonds: a bond denominated in USD is issued in the foreign market. You need to estimate the probabilities that a bond with the following characteristics is issued in each market: 4 maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no callable: yes puttable: no. According to the analysis, what is the most likely market of issue of this bond? In the analysis, estimate multinomial logit regression model and briefly discuss the determinants of "Market of Issue." 4 Estimating yield for a hypothetical bond (7 points) Lastly, you need to estimate the yield for a bond with the following characteristics: maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics 5 domicile: When mantle peridotite melts as a result of being uplifted in the way described in the previous question, the process is called__________ and is likely to happen at ____________. 1. solidus crystallization, divergent boundaries 2. solution, convergent boundaries and hot spots 3. recrystallization melting, hot spots 4. decompression melting, divergent boundaries and hot spots 8. (Question C, Figure 2.7) According to your answers to the previous four questions related to the peridotite at point X being subjected to changes in pressure and temperature, which two processes would lead to melting? 1. decrease in pressure and temperature 2. increase in pressure and temperature 3. decrease in pressure and increase in temperature. 4. increase in pressure and decrease in temperature Lab manual (Busch, 9th Edition) Activity 2.8 part D: A few modifications will allow you to run the experiment described in this section using materials readily available in your home. The hot plate can be replaced by a foil lined frying pan on the stove burner. The two sugar cubes can also be replaced by two teaspoonfuls of sugar; the secret is not to add excessive water to the sample that needs to be wet. Extra water will dissolve the sugar and obscure the interpretation of your results. ll the experiment materials directly on the cool burner to avoid mixing of the two samples when you move the foil. Place on the stove burner the foil lined pan, the two separate heaps of sugar and add the drops of water on one of the heaps. Then turn the stove on at medium heat, and observe. 9. (Question D1) Which sample melted first? 1. the dry sample 2. the wet sample 10. (Question D2) The rapid melting that you observed in the sample that melted first is called "flux melting," because flux is an added component the speeds up a process. What was the flux? 1. sugar 2. water 3. silicates 11. (Question D3, Figure 2.8) The effect of water on peridotite is similar to its effect on the sugar experiment, therefore when peridotite is heated in "wet" conditions, the line of the "wet solidus" would be located to the _____________ USA convertible: no callable: yes puttable: no market of issue: Global. To ensure that the results are robust, estimate at least 3 regression models (e.g., in the first regression model, one includes amount in $, in the second model, one uses the natural logarithm of amount in $, and the third model features something else). Briefly discuss the determinants of yield. Using one of the regression models, compute two additional yields: 1. the amount is $1,000,000,000, other bond characteristics the same as above 2. S&P credit rating is AA, other bond characteristics the same as above (i.e., amount: $750,000,000 etc.). Are the results the same as the main estimate? Why?nput to the electric furnace in open loop. b-after what time would a temperature of 1200 C be reached in the oven? We decide to control the temperature in the electric furnace by using a temperature sensor which delivers a voltage u(t). The sensor is governed by the differential equation u(t) + 2 = 510-30(t) - du dt We also interduce a gain K in the feedforward loop. c - Draw a block diagram of the control loop and determine the closed loop transfer function. Determine the stability conditions of this system. d - Imposing a phase margin Ag = 45, determine the value of the rise time in the closed loop system. e - We obviously want to regulate the temperature of the electric furnace at 1,200 C. Determine the value of the setpoint to be introduced into the system. With the system tuned to obtain a phase margin Ap = 45, what is the maximum temperature reached in the electric furnace? Conclude. f- we would like to limit the overshoot at 10% , determine the raise time and how many object can be treated in 24 hours. d - We want to reach a processing rate of 100 objects per 24 hours. Determine the value of K that allow us to meet this objective. What is the phase margin then? What type of corrector should be added to the feedforward loop in order to limit the overshoot at 10% while maintain the desired processing rateTemperature control to meet design requirements An electric furnace intended for the heat treatment of objects consists of a closed enclosure heated by an electrical resistance which supplied by a voltage v(t). Ten objects can be treated simultaneously in the furnace. The heat treatment consists of maintaining the objects for 1 hour at a temperature of 1,200 C (regulated in an optimal way because the objects are destroyed if the temperature exceeds 1,400 C). between each two treatments, a time of 24 minutes is necessary to cool the oven and handling of products. The electric furnace is governed by the differential equation de + 2000 = 0.020(e) Questions a - determine the following - Open loop transfer function G(s) of the electric furnace. - Static gain. - What would happen if the furnace was powered continuously and in an open loop? Assuming, despite everything, that we apply a 100 V input to the electric furnace in open loop. b-after what time would a temperature of 1200 C be reached in the oven? We decide to control the temperature in the electric furnace by using a temperature sensor which delivers a voltage u(t). The sensor is governed by the differential equation u(t) + 2 = 510-30(t) - du dt We also interduce a gain K in the feedforward loop. c - Draw a block diagram of the control loop and determine the closed loop transfer function. Determine the stability conditions of this system. d - Imposing a phase margin Ag = 45, determine the value of the rise time in the closed loop system. e - We obviously want to regulate the temperature of the electric furnace at 1,200 C. Determine the value of the setpoint to be introduced into the system. With the system tuned to obtain a phase margin Ap = 45, what is the maximum temperature reached in the electric furnace? Conclude. f- we would like to limit the overshoot at 10% , determine the raise time and how many object can be treated in 24 hours. d - We want to reach a processing rate of 100 objects per 24 hours. Determine the value of K that allow us to meet this objective. What is the phase margin then? What type of corrector should be added to the feedforward loop in order to limit the overshoot at 10% while maintain the desired processing rate1 Sample and description statistics (5 points) From Eikon download bond issues with the following characteristics: 1. Sector: Consumer Goods, Manufacturing, Telephone, Transportations 2. Domicile: United States 3. Amount Outstanding: > 100,000,000 4. Coupon: > 0% 2 5. Maturity: > 1-October-2024 6. S&P Long-term Issue Credit Rating: > D. 7. make sure that the following filters are visible on the left hand side: (a) Currency (b) Convertible (c) Callable (d) Putable (e) Seniority (f) Market of Issue You should end up with more than 2,000 bonds; thus, you will need to download the data to Excel in batches (e.g., first, download small bond issues, then medium, and lastly with large bond issues). Discuss briefly your sample, including the number of observations, outliers. Provide the descriptive statistics of the sample. How you choose to d is entirely at your discretion. However, it is recommended that you consider using both summary statistic and graphical methods (this task should include at least one pie chart, one histogram, and one scatter plot) while also noting any peculiarities within the data set. You should put more emphasis on variables that are the dependent variables in the regressions estimated in other tasks. 2 Which bonds are more likely to include "a call" feature? (7 points) A bond issuer can repurchase its bonds before their maturity if they include a call feature. Firstly, identify statistically significant characteristics of callable bonds. You may consider, issue size, maturity, industry, credit rating, and other variables available in Eikon. Secondly, compute the average of the individual marginal effects of the amount outstanding on the probability that a bond includes a call feature. Thirdly, estimate the probability that a bond with the following characteristics includes a call feature: 3 maturity: 10 years coupon: 2.5% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no market of issue: Global puttable: no. Do the results suggest that this bond is callable or not? In this task, you are expected to use a logit regression analysis. To ensure that the results are robust, estimate at least two regression models (e.g., in the first regression model, one includes amount in $ and in the second model, one uses the natural logarithm of amount in $). 3 Which bonds are more likely to be issued in the domestic and foreign markets? (6 points) "Market of Issue" can take the following values: Domestic: a bond is issued in the US Global: a bond is issued in the US and foreign markets Eurobonds: a bond denominated in USD is issued in the foreign market. You need to estimate the probabilities that a bond with the following characteristics is issued in each market: 4 maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no callable: yes puttable: no. According to the analysis, what is the most likely market of issue of this bond? In the analysis, estimate multinomial logit regression model and briefly discuss the determinants of "Market of Issue." 4 Estimating yield for a hypothetical bond (7 points) Lastly, you need to estimate the yield for a bond with the following characteristics: maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics 5 domicile: USA convertible: no callable: yes puttable: no market of issue: Global. To ensure that the results are robust, estimate at least 3 regression models (e.g., in the first regression model, one includes amount in $, in the second model, one uses the natural logarithm of amount in $, and the third model features something else). Briefly discuss the determinants of yield. Using one of the regression models, compute two additional yields: 1. the amount is $1,000,000,000, other bond characteristics the same as above 2. S&P credit rating is AA, other bond characteristics the same as above (i.e., amount: $750,000,000 etc.). Are the results the same as the main estimate? Why?1 Sample and description statistics (5 points) From Eikon download bond issues with the following characteristics: 1. Sector: Consumer Goods, Manufacturing, Telephone, Transportations 2. Domicile: United States 3. Amount Outstanding: > 100,000,000 4. Coupon: > 0% 2 5. Maturity: > 1-October-2024 6. S&P Long-term Issue Credit Rating: > D. 7. make sure that the following filters are visible on the left hand side: (a) Currency (b) Convertible (c) Callable (d) Putable (e) Seniority (f) Market of Issue You should end up with more than 2,000 bonds; thus, you will need to download the data to Excel in batches (e.g., first, download small bond issues, then medium, and lastly with large bond issues). Discuss briefly your sample, including the number of observations, outliers. Provide the descriptive statistics of the sample. How you choose to ds is entirely at your discretion. However, it is recommended that you consider using both summary statistic and graphical methods (this task should include at least one pie chart, one histogram, and one scatter plot) while also noting any peculiarities within the data set. You should put more emphasis on variables that are the dependent variables in the regressions estimated in other tasks. 2 Which bonds are more likely to include "a call" feature? (7 points) A bond issuer can repurchase its bonds before their maturity if they include a call feature. Firstly, identify statistically significant characteristics of callable bonds. You may consider, issue size, maturity, industry, credit rating, and other variables available in Eikon. Secondly, compute the average of the individual marginal effects of the amount outstanding on the probability that a bond includes a call feature. Thirdly, estimate the probability that a bond with the following characteristics includes a call feature: 3 maturity: 10 years coupon: 2.5% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no market of issue: Global puttable: no. Do the results suggest that this bond is callable or not? In this task, you are expected to use a logit regression analysis. To ensure that the results are robust, estimate at least two regression models (e.g., in the first regression model, one includes amount in $ and in the second model, one uses the natural logarithm of amount in $). 3 Which bonds are more likely to be issued in the domestic and foreign markets? (6 points) "Market of Issue" can ta Which choice best describes, the processes leading to the formation of a continental volcanic arc, in chronological order? (Beware of error in F3: the words between brackets "oceanic ridge" should be replaced with "continental volcanic arc"). 1. " wet" seafloor basalt subducts and dehydrates, water induces flux melting of mantle peridotite above, basaltic magma ascends and forms volcanoes. 2. flux melting, magma ascends to the surface forming volcanoes, peridotite rises to shallow depth and melts, subduction. 3. magma ascends, decompression melting of peridotite, peridotite pushes the ocean floor basalt open and forms volcanoes. 4. peridotite ascends, decompression melting forms basaltic magma, magma pushes and cracks the ocean floor basalt open, and erupts forming volcanoes Lab manual (Busch, 9th Edition) Activity 2.3: Using Earthquakes to identify Plate boundaries 15. Refer to the figure in activity 2.3. Which of the following places represent a Benioff Zone? (Hint: refer back to the notes for unit 3) 1. 10S, 110W 2. 0, 90W 3. 0, 80W 4. 20S, 100W 16. The Benioff zone is associated with which type of plate boundary? 1. Divergent 2. Convergent (Continent-Continent) 3. Convergent (Continent-Ocean) 4. Transform Lab manual (Busch, 9th Edition) Activity 2.4: Analysis of Atlantic Seafloor Spreading To solve questions in this section, review how to work with graphic scales and the metric system in Unit 2. Use a ruler to measure the distance between features and determine the equivalent distance in ke the following values: Domestic: a bond is issued in the US Global: a bond is issued in the US and foreign markets Eurobonds: a bond denominated in USD is issued in the foreign market. You need to estimate the probabilities that a bond with the following characteristics is issued in each market: 4 maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no callable: yes puttable: no. According to the analysis, what is the most likely market of issue of this bond? In the analysis, estimate multinomial logit regression model and briefly discuss the determinants of "Market of Issue." 4 Estimating yield for a hypothetical bond (7 points) Lastly, you need to estimate the yield for a bond with the following characteristics: maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics 5 domicile: USA convertible: no callable: yes puttable: no market of issue: Global. To ensure that the results are robust, estimate at least 3 regression models (e.g., in the first regression model, one includes amount in $, in the second model, one uses the natural logarithm of amount in $, and the third model features something else). Briefly discuss the determinants of yield. Using one of the regression models, compute two additional yields: 1. the amount is $1,000,000,000, other bond characteristics the same as above 2. S&P credit rating is AA, other bond characteristics the same as above (i.e., amount: $750,000,000 etc.). Are the results the same as the main estimate? Why?1 Sample and description statistics (5 points) From Eikon download bond issues with the following characteristics: 1. Sector: Consumer Goods, Manufacturing, Telephone, Transportations 2. Domicile: United States 3. Amount Outstanding: > 100,000,000 4. Coupon: > 0% 2 5. Maturity: > 1-October-2024 6. S&P Long-term Issue Credit Rating: > D. 7. make sure that the following filters are visible on the left hand side: (a) Currency (b) Convertible (c) Callable (d) Putable (e) Seniority (f) Market of Issue You should end up with more than 2,000 bonds; thus, you will need to download the data to Excel in batches (e.g., first, download small bond issues, then medium, and lastly with large bond issues). Discuss briefly your sample, including the number of observations, outliers. Provide the descriptive statistics of the sample. How you choose to is entirely at your discretion. However, it is recommended that you consider using both summary statistic and graphical methods (this task should include at least one pie chart, one histogram, and one scatter plot) while also noting any peculiarities within the data set. You should put more emphasis on variables that are the dependent variables in the regressions estimated in other tasks. 2 Which bonds are more likely to include "a call" feature? (7 points) A bond issuer can repurchase its bonds before their maturity if they include a call feature. Firstly, identify statistically significant characteristics of callable bonds. You may consider, issue size, maturity, industry, credit rating, and other variables available in Eikon. Secondly, compute the average of the Subduction of the Juan de Fuca Plate under the North American Plate brings rocks from the ocean floor and marine sediment to depths where partial melting ensues due to the increased temperature and the influence of water. 4. Migration of the North American Plate over a hot spot is responsible for the Cascade Range volcanoes. Part 2- Google Earth The exercises that follow use Google Earth. For each question (or set of questions) paste the location that is given into the "fly to" box. Examine each location at multiple eye altitudes and differing amounts of tilt. For any measurements use the ruler tool, this can be accessed by clicking on the ruler icon above the image. Google Earth: Hawaiian Islands Fly to Hawaii. Please review the section on Hotspots and the Hawaiian Islands in the Lab manual and in the unit notes. Rocks have been dated on each of the Hawaiian Islands and their ages are as follows: Big Island- 0 (active), Maui - 1.1 million, Kauai- 4.7 million, Nihoa (23 03 32.79N 161 55 11.94W)- 7.2 million years 28. Consider the ages and positions of the islands listed above along with what you know about plate tectonics and hotspots. In what general direction is the Pacific Plate moving? 1. Northwest 2. Southeast 3. Northeast 4. Southwest 29. How fast was the Pacific plate moving during the last 1.1 million years between the formation of the Big Island and Maui in cm/year? 1. ~5 cm/year 2. ~10 cm/year 3. ~15 cm/year 4. ~20 cm/year 30. How fast was the Pacific plate moving from 7.2 million years ago to 4.7 million years ago between the formation of Kauai and Nihao in cm/year? 1. ~5 cm/year 2. ~10 cm/year 3. ~15 cm/year 4. ~20 cm/year 31) individual marginal effects of the amount outstanding on the probability that a bond includes a call feature. Thirdly, estimate the probability that a bond with the following characteristics includes a call feature: 3 maturity: 10 years coupon: 2.5% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no market of issue: Global puttable: no. Do the results suggest that this bond is callable or not? In this task, you are expected to use a logit regression analysis. To ensure that the results are robust, estimate at least two regression models (e.g., in the first regression model, one includes amount in $ and in the second model, one uses the natural logarithm of amount in $). 3 Which bonds are more likely to be issued in the domestic and foreign markets? (6 points) "Market of Issue" can take the following values: Domestic: a bond is issued in the US Global: a bond is issued in the US and foreign markets Eurobonds: a bond denominated in USD is issued in the foreign market. You need to estimate the probabilities that a bond with the following characteristics is issued in each market: 4 maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credit rating: A sector: Electronics domicile: USA convertible: no callable: yes puttable: no. According to the analysis, what is the most likely market of issue of this bond? In the analysis, estimate multinomial logit regression model and briefly discuss the determinants of "Market of Issue." 4 Estimating yield for a hypothetical bond (7 points) Lastly, you need to estimate the yield for a bond with the following characteristics: maturity: 10 years coupon: 3% amount: $750,000,000 currency: US dollars seniority: senior unsecured S&P credi