Category: Economics Homework Help

The client has asked the firm to explain the concept of arbitrage as it relates to the fixed-income securities. You must develop a report that explains the arbitrage-free valuation framework and analyzes the availability of arbitrage opportunities in the U.S. corporate bond market.

In the paper,
Explain the arbitrage-free valuation framework and the law of one price.

Illustrate a theoretical arbitrage opportunity for a corporate bond based on value additivity.

Using the spot rates you used in your Week 2 Yield Curve and Forecast Report, provide an analysis to the client on the arbitrage-free valuation of two bonds in the portfolio (use only non-convertible corporate bonds from the portfolio).

This should be presented as the sum of the present values of expected future values using the benchmark spot rates.

Compare the arbitrage-free valuation to the current market value of the two chosen bonds.

State your conclusion as to whether an arbitrage-free opportunity exists for these two bonds.

Briefly explain the valuation process to determine if bonds with embedded options are priced correctly, or if there is an arbitrage opportunity for this type of bond.

Include in your explanation how to use a binomial interest rate tree in the valuation process.

Research and review at least two articles about arbitrage opportunities in the U.S. corporate bond market.

Based on these articles,
Analyze the availability of arbitrage opportunities in the U.S. corporate bond market.

Summarize the opportunities and risks of seeking and implementing bond trades to execute an arbitrage opportunity.

See the Summary vs. Analysis (Links to an external site.) resource for additional guidance.

Must be three to five double-spaced pages in length (not including references pages). Also please note that the paper should be 20% or less for originality score, includes an introduction paragraph which will state the purpose for the report and the recommendations for action should be stated. The paper should also include an executive summary which will include a concise summary of the business report. Essentially, this section should (a) restate the purpose of the report, (b) highlight the major points of the report, and (c) describe any results, conclusions, or recommendations from the report. The paper should also have titles for all the posts requested in the response and a conclusion. Lastly, please use at least 3 scholarly and or academically journal as resources along with the article attached.

I have also attached the yield paper from ‘Week 2″

Pick any three of the biases or anomalies we have discussed in class so far.

For each one, explain:

• What makes it a useful heuristic in certain situations
• How can it lead to a bad or irrational decision
• What can you do to maximize its heuristic value and minimize irrationality bias when it is at work

1. What is the difference between a tariff and a quota?
2. How do you find consumer surplus and producer surplus if you have a demand-supply graph?
3. When a small country engages in free trade, what will be its domestic price?
4. Where can you find the increase in total surplus when a small country engages in free trade?
5. If a small country puts a per-unit tariff on an imported product, will the world price of the product change? Why?
6. What is the deadweight loss in total surplus when a small country switches from free trade to using a tariff?
7. If a LARGE country puts a per-unit tariff on an imported product, will the world price of the product change? Why?
8. What is the change in a large Home country’s total surplus when it switches from free trade to using a tariff?
9. What is the terms of trade gain when a large country applies a per-unit tariff?
10. What is an optimal tariff for a large country?
11. Think about a small country setting a quota on an imported product. What is an equivalent import tariff of the import quota? What is the meaning of quota rents?
12. How do different methods of allocating an import quota affect a country’s total surplus compared to using an equivalent import tariff?

I need to write an final paper，all the requirement was post below. PLS read it carefully, i only need write the 4th part, i post 1/2/3parts blow, you need finish

4.Critically evaluate the selected firm’s working capital structure and the extent to which it is optimal. (around 500 words)

You may wish to include the following: (i) Discussion of its liquidity risk taking into account the nature of the sector and current financial market and economic conditions, (ii) A critical evaluation of the company’s working capital structure, and (iii) your recommendations for optimising the liquidity/working capital structure of your chosen company.

if you need any information, please lets me know.

i) Operational risk

ii) Interest rate risk

iii) Liquidity risk

iv) Off-Balance risk

v) Market risk

Q2: Critically examine the bank performance, with a particular reflection on the theoretical discussion.

Answers should cover:

i) Why should we care about bank performance?

ii) Explain how different stakeholders may impact on evaluate bank performance and why?

iii) How can bank performance be measured?

Q3:

a) Define and provide examples for Off-Balance Sheet Activities by banks.

b) Explain in details what is Securitisation and it role in banking activities?

Q4: Evaluate and analyse the management of credit risk in the context of lending function.

Answers should cover:

I) What is credit risk?

ii) How does bank manage credit risk?

iii) How does bank utilize the five Cs’ of credit analysis?

Q1: Discuss the impact of the different types of risk on banking institutions and how do banks seek to manage these types of risk? Provide examples and ways to measure each type of risk.

i) Operational risk

ii) Interest rate risk

iii) Liquidity risk

iv) Off-Balance risk

v) Market risk

Q2: Critically examine the bank performance, with a particular reflection on the theoretical discussion.

Answers should cover:

i) Why should we care about bank performance?

ii) Explain how different stakeholders may impact on evaluate bank performance and why?

iii) How can bank performance be measured?

Q3:

a) Define and provide examples for Off-Balance Sheet Activities by banks.

b) Explain in details what is Securitisation and it role in banking activities?

Q4: Evaluate and analyse the management of credit risk in the context of lending function.

Answers should cover:

I) What is credit risk?

ii) How does bank manage credit risk?

iii) How does bank utilize the five Cs’ of credit analysis?

1. Suppose the model of interest is Yi = 0 + 1X1i + 2X2i + ui
, where E(u|X)=0 and E(u
2
|X)=
and X1 and X2 are uncorrelated in your sample. Will the bivariate regression of Y on Xi have the
same coefficient estimate and standard error for
1
ˆ

as the multivariate regression of Y on X1 and
X2? [6 points]

I need support with this Growth Theory question so I can learn better.

Describe an adverse selection problem a company is facing. What is the source of the asymmetric information? Who is the less informed party? What transactions are not being consummated as a result of the information? Could you (or do you) use signaling or screening to consummate these transactions? Offer your company some sound advice, complete with computations of the attendant profit consequences.

Describe a decision that is centralized (or decentralized) in your company. How could you decentralize (or centralize) the decision? What would happen if it were decentralized (or centralized)? Compute the profit consequences of the change.

Note: The video has Closed Captioning. To activate it, start the video, mouse over the bottom of the video and click on the CC icon, then select from the menu.

This week we are going to examine substitute goods, highways and a bit about how we pay for highways.

Assignment Instructions:

1. Watch the video above.
2. What are the advantages and disadvantages of toll roads for drivers? Why might an individual prefer to pay a toll than to use a free road?
3. Are there other ways to pay for highways other than tolls or higher motor fuel taxes? (Oregon is researching an alternative user fee system, you may wish to search for that information.)
4. Are there environmental aspects to the use of toll roads versus free roads?
5. Post your views to the discussion board and refer to at least two different concepts from this week’s Chapters. Please remember to use CAPITAL LETTERS. Your illustration of concepts MUST include an explanation why you think they are relevant to the week’s topic using specific information from the articles, videos or any research you may have done.

MAKE SURE THAT YOU ADD SOMETHING NEW to the discussion.

1. Post on three different days for a minimum of three posts. Failure to meet these minimum posting requirements results in point loss.
   • Include a word count on each post. All of your posts should sum to a minimum of 500 words.
   • Each post submitted should be between 150 and 250 words. Keep them short, specific, and clear.
   • Use paragraphs as appropriate.
   • Very lengthy posts do not provide an incentive to be read.
   • Remember to document all use of sources by using citations and references. These should be in APA format.
   • Please review Plagiarism Powerpoints ( PLAGIARISM.ppt PLAGIARISM.ppt – Alternative Formats ) and be sure to provide references (APA.ppt), including URLs where appropriate, to all works that you cite.