Questions from Corporate Finance


Q: At your discount brokerage firm, it costs $7.95

At your discount brokerage firm, it costs $7.95 per stock trade. How much money do you need to buy 200 shares of Pfizer, Inc. (PFE), which trades at $31.40?

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Q: What factors cause the demand for funds curve to shift?

What factors cause the demand for funds curve to shift?

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Q: Discuss and compare the three explanations for the shape of the yield

Discuss and compare the three explanations for the shape of the yield curve.

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Q: What are six factors that determine the nominal interest rate on a

What are six factors that determine the nominal interest rate on a security?

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Q: What should happen to a security’s equilibrium interest rate as the security’s

What should happen to a security’s equilibrium interest rate as the security’s liquidity risk increases?

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Q: What is a forward interest rate?

What is a forward interest rate?

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Q: If we observe a 1-year Treasury security rate that is

If we observe a 1-year Treasury security rate that is higher than the 2-year Treasury security rate, what can we infer about the 1-year rate expected one year from now?

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Q: Would you expect a utility company to have high or low debt

Would you expect a utility company to have high or low debt levels? Why?

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Q: Given a 9 percent interest rate, compute the year 6 future

Given a 9 percent interest rate, compute the year 6 future value if deposits of $1,500 and $2,500 are made in years 2 and 3, respectively, and a withdrawal of $600 is made in year 5.

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Q: To borrow $2,000, you are offered an add

To borrow $2,000, you are offered an add-on interest loan at 10 percent with 12 monthly payments. First, compute the 12 equal payments and then compute the EAR of the loan:

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