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Hi, I need this assignment done by as soon as possible. No later than 8am jan 26, 2017. I have attached the file below. I
Hi, I need this assignment done by as soon as possible. No later than 8am jan 26, 2017. I have attached the file below. I need everything in complete and professionally written.
The University of Western Ontario DAN Management and Organizational Studies MOS 3313b: Financial Markets and Institutions Prof. Brou - Sections 001 and 003 Assignment 1 Due Date: 12pm, January 26, 2017 Instructions: The following questions are based on the material in chapters 2-3. Answer all questions to the best of your ability and as concisely as possible. You must submit a hard copy of this assignment before 12pm on the due date. You can either drop it off directly to my office (SSC 4425 - just slide it under the door if I'm not in) or submit it to me during class. Late assignments will not be accepted. Email submissions will not be accepted. 1. Describe the impact of the following scenario on the equilibrium level of interest rates: the government introduces new tax incentives for investment projects by firms. 2. Investigate the data on interest rates available from the Bank of Canada at HUwww.bankofcanada.caUH. (a) Find the following data for January 16, 2017: Treasury Bill - 1 Year rate, Government of Canada Benchmark Bond Yield - 2 Year, 3 Year, and 5 Year. (b) Using the unbiased expectations theory, calculate the one-year forward rates for years 2 and 3, as well as the 2-year forward rate for year 4. 3. You and a friend are reading the financial press and notice that the Government of Canada yield curve is slightly upward sloping. Your friend comments that all looks well for the economy but you are concerned that the economy is heading for trouble. Assuming you both subscribe to the Liquidity Premium Theory, what might account for your difference of opinion? 5. Find and read the article: \"Dangerous Curve.\" The Economist, 31 March 2010. Provide a brief (one-page maximum) assessment of its analysis of the yield curve in 2010. Use the tools and terminology learned in this course wherever possibleStep by Step Solution
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