Suppose that the yield curve is flat at 5% per annum with continuous compounding. A five-year swap with a notional principal of $100 million in which 6% per annum with semi-annual compounding is received and six-month LIBOR is paid will last another 15 months. Payments are exchanged every six months. The six-month LIBOR rate at the last reset date (three months ago) was 7% per annum with semi-annual compounding. Answer in millions of dollars to two decimal places. Requried:
a. What is the value of the fixed-rate bond underlying the swap?
b. What is the value of the floating-rate bond underlying the swap?
c. What is the value of the payment that will be exchanged in 3 months?
d. What is the value of the payment that will be exchanged in 9 months?
e. What is the value of the payment that will be exchanged in 15 months?
f. What is the value of the swap?

Corey is trying to save money to buy a new tv. he invests $800 into an account paying 6.5% simple interest. for how long must he save if the tv costs $950? a. 2 years b. 3 years c. 4 years d. 5 years

Suppose that two firms produce differentiated products and compete in prices. as in class, the two firms are located at two ends of a line one mile apart. consumers are evenly distributed along the line. the firms have identical marginal cost, $60. firm b produces a product with value $110 to consumers.firm a (located at 0 on the unit line) produces a higher quality product with value $120 to consumers. the cost of travel are directly related to the distance a consumer travels to purchase a good. if a consumerhas to travel a mile to purchase a good, the incur a cost of $20. if they have to travel x fraction of a mile, they incur a cost of $20x. (a) write down the expressions for how much a consumer at location d would value the products sold by firms a and b, if they set prices p_{a} and p_{b} ? (b) based on your expressions in (a), how much will be demanded from each firm if prices p_{a} and p_{b} are set? (c) what are the nash equilibrium prices?

What tax is paid by the most people in the united states