Zero-coupon risk-free bonds are available with the following maturities and yield rates (effective, annual):
Maturity(in years) Yield %
1 6
2 6.5
3 7
You need to buy corn for producing ethanol. You want to purchase 10,000 bushels one year from now, 15,000 bushels two years from now, and 20,000 bushels three years from now. The current forward prices, per bushel, are $3.89, $4.11, and $4.16 for one, two, and three years respectively. You want to enter into a commodity swap to lock in these prices. Which of the following sequences of payments at times one, two, and three will NOT be acceptable to you and to the corn supplier?
a. $38,900; $61,650; $83,200
b. $39,083; $61,650; $82,039
c. $40,777; $61,166; $81,554
d. $41,892; $62,340; $78,997
e. $60,184; $60,184; $60,184 73.2
Solved
Show answers
More tips
- A Animals and plants Уход за джунгариками: полезные советы и рекомендации...
- L Legal consultation What Documents Are Required for a Russian Passport?...
- S Sport How to Choose Tennis Rackets?...
- H Health and Medicine AKDS Vaccination: Ensure Your Child s Safety...
- H Health and Medicine Naskol ko Opasen Ukus Kleshcha i Kak Ego Raspoznat...
- C Computers and Internet How to Delete Your Account on Odnoklassniki...
- H Health and Medicine What to Do When Your Jaw Locks Up?...
- G Goods and services What Are the Most Popular Services?...
- P Philosophy How did the concept of module arise in computer science?...
Answers on questions: Business
- B Business If demand increases in a market then if supply is upward sloping this will lead to: Select one: a. A higher equilibrium price and output b. A lower equilibrium price and...
- B Business What happened to the resale value of real estate during the late 1970 s and 1990 s? Economics question....
- B Business We are talking business people. what is 5+4+9-6+8+0...
- B Business At December 31, 2020, the following information was available from Kohl Co. s accounting records: Cost Retail Inventory, 1/1/20 $147,000 $203,000 Purchases 833,000 1,155,000...
- B Business As a response to the bank failures of the a system of federal deposit insurance was established to strengthen the banking system. a.wildcat banking crisis of the 1880s...
- B Business On may 10, the ceo of massmachine announced a quarterly dividend of $.50 per share to be paid on june 25 to all stockholders on the record as of friday june 6. what is...
- B Business When he took office in 1961, president kennedy chose to try to stimulate the sluggish economy through a. a massive foreign-aid program. b. large-scale government spending...
- B Business Jit is a system. a. push b. pareto s law c. mrp d. pull...
- B Business Mattel, inc. selects suppliers and obtains raw materials to make toys. the company is engaged in which function of marketing? a. financing b. buying c. selling d. storing...
- B Business Mutual interdependence means that each oligopolistic firm: a. faces a perfectly elastic demand for its product. b. must consider the reactions of its rivals when it determines...
Ответ:
e. $60,184; $60,184; $60,184
Explanation:
Corn supplier will have yields of 6 in year 1 and 6.5 in year 2, if it will purchase bushels now he will have to pay $39,083 now or $38,900 2 years later. The corn supplier will not accept the price below this and we will not pay price above this. The Medicare price should be determined and set.
Ответ:
When I was thirteen years old, we left our hometown for the last time. I was forced to start high school in a strange place. It was hard, but I learned that being thrown into a new environment can be great.
Explanation:
It eez what it eez