Question
solve all of them please 3-Suppose a stock index contains the stock of 3 firms: A, B and C. The stock prices for the three
solve all of them please
3-Suppose a stock index contains the stock of 3 firms: A, B and C. The stock prices for the three firms are $56, $63 and $23, respectively. The firms have 132 million, 102 million and 110
million shares outstanding, respectively. If the index is value-weighted, calculate its initial value. (round your answer to 2 decimal places)
4-Suppose a bank enters a repurchase agreement in which it agrees to sell Treasury securities to a correspondent bank at a price of $9,999,389 with the promise to buy them back at a
price of $10,000,028. Calculate the yield on the repo if it has a 2-day maturity. (write your answer in percentage and round it to 2 decimal places)
5- Suppose you invest in a municipal bond that pays a yield of 13%. If your marginal tax is 20%, what is the equivalent yield on the taxable bond? (write your answer in percentage and
round it to 2 decimal places)
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