Cougars Case

2291 words - 10 pages
1. Why have riskless zero-coupon bonds been so successful with investors?

Zero-coupon bonds have been successful because they can be purchased by investors at a deep discount from their face value and because the investor knows exactly how much they will collect in a lump sum at the bond’s maturity date. Zeros do not pay interest during the life of the bond and at maturity; the investor receives an amount equal to the initial investment plus the imputed interest. Zeros are offered for long-term maturities, so that investors can use them to plan for long-term goals and to diversify their portfolio. Ultimately, zero-coupon bonds are successful because they are sold at a deep discount, so an investor can spend a small amount of money that can grow over many years.

2. What relationship do the prices of riskless zero-coupon bonds have with the term structure of interest rates?

Longer-term interest rates are higher than shorter-term interest rates. This reflects the higher inflation-risk premium that investors demand for longer-term bonds. The term structure of interest rates is graphed as though each coupon payment of a riskless bond were a zero-coupon bond that matures on the coupon date.

3. How are spot, strip and coupon yield related?

Treasury STRIPS convert each coupon and principal payment into a separate zero-coupon security. The Treasury yield curve is obtained from the prices of Treasury strips. Strips are essentially zero-coupon bonds which are traded for a variety of maturities. From the strip prices, you can directly obtain the yield curve. The spot rates are w ...

Read More

Similar Essays

Football Experience

1490 words - 6 pages

The Football Experience In the beginning, there was football. The official said, Let the stadium lights come on, and they came on. The football players came onto the field, and they saw the light was good. Other teams started to show up and practice on the battle ground, otherwise known as the "playing field." Fans shouted, and cheerleaders went on about their playful acts. Parents, brothers, sisters, and close friends all piled into the stands to see the game of the year. The official stepped out onto the moist grass at Williams Stadium in Plano, Texas. The time was seven o'clock p.m. o

View Document


409 words - 2 pages

The cougar population is rising every year in Oregon and the population is moving closer to urban areas. As a result, cougar attacks are increasing. Management of the cougar population has become a political issue that sparks many debates. It is not too often anyone ever sees a cougar but they are out there. We walk threw the woods not even thinking of these creatures, but they are thinking about us and watching us. Sometimes cougars are too interested in us and our domestic animals, and this usually ends up with an injury or even death. The Oregon Department of Fish and Wildlife (ODFW) is

View Document

Swot Analysis

163422 words - 654 pages

2 A brief overview of the classical linear regression model Learning Outcomes In this chapt, er ou wil learn who ot y ? eDriv the OLS formulae for timating paraersmt and their es andadr eros ts ? pani the aelb ppresit tat a dog arot udl xE l rised or h mit se ohs haev ? us the fasrotc tat afftce the zse of aadr erso csiD h is ts dn ? tes T ypothes using the tes of sign h cance and con denc al appacseh vre tni or ? pter re tnI p ause vl ? aet gernois sledom adn tes elgnis ptoseh ni mit sE yh sw eiVE 2.1 What is a regression model?

View Document

Related Essays on Cougars Case

  • Essay

    6311 words - 26 pages

    LB160 Book (1) Analyzing Business Cases Session (1) : Mapping The Case 1.1) Introduction: - A) When you start a business studies course, it is usually not long before you have to read a case study. Case studies come in different shapes and sizes but they all have the same purpose. They present a part of the business world for you to think about using ideas from the business studies course. B) Sometimes you don’t have to do more than read them. Sometimes you have to study them more carefully and write an assignment on them. This process forms the title of this book: Analysing B

    View Document

    Modern English Grammar And Usage

    117622 words - 471 pages

    For Senior Courses of the Foreign Language Faculties in Universities and Teachers' Training Colleges FOREWORD The book is designed for the students of the senior courses of the University faculties of foreign languages and Teachers' Training Colleges. The aim of the book is therefore to lead the students to a scientific understanding of new assumptions and views of language as system, keeping abreast of the latest findings set forth in the progressive development of grammatical theory by Soviet and foreign scholars in recent times. The central interest in functional semantic correlation

    View Document

    Making Tourism More Sustaintable

    83092 words - 333 pages

    Employment Quality Community Wellbeing Biological Diversity MAKING TOURISM MORE SUSTAINABLE A Guide for Policy Makers Economic Viability Local Control Physical Integrity Environmental Purity Local Prosperity United Nations Environment Programme Division of Technology, Industry and Economics 39-43 Quai André Citroën 75739 Paris CEDEX 15, France Tel: +33 1 44371450 • Fax: +33 1 44371474 E-mail: [email protected] • Visitor Ful?llment Cultural Richness Social Equity World Tourism Organization Capitán Haya 42 · 28020 Madrid, Spain Tel: +34 91 567 81 00 • Fax: +34 91 571

    View Document

    Essays On Negligence

    53804 words - 216 pages

    INTRODUCTION TO THE LAW OF CONTRACT DEFINITION  A contract may be defined as a legally binding agreement or, in the words of Sir Frederick Pollock: “A promise or set of promises which the law will enforce”. The agreement will create rights and obligations that may be enforced in the courts. The normal method of enforcement is an action for damages for breach of contract, though in some cases the court may order performance by the party in default.  CLASSIFICATION  Contracts may be divided into two broad classes:   1.    Contracts by deed A deed is a formal legal document signed, wi

    View Document

    Factory Law

    48516 words - 195 pages

    Report on The Working Conditions of Contract Labour  in Cement manufacturing Industry, Cement Related Mines, Food Corporation of India AND National Thermal Power Corporation WORKING CONDITIONS, WELFARE SOCIAL SECURITY   AND INDUSTRIAL RELATIONS WORKING CONDITIONS 4.1 Hours of Work, Rest Interval and Spreadover. Working hours of contract workers are regulated through the Factories Act, Mines Act/Plantation Labour Act, as the case may be.  The Factories Act, 1948 provides that normally an adult worker shall not be allowed to work for more than 9 hours in a day and 48 hours in a week.  U

    View Document

    C Programming

    32735 words - 131 pages

    Node:Top, Next:Preface, Previous:(dir), Up:(dir) C Programming Tutorial (K&R version 4) This is a C Programming Tutorial for people who have a little experience with an interpreted programming language, such as Emacs Lisp or a GNU shell. Edition 4.02 Copyright ? 1987,1999 Mark Burgess Permission is granted to make and distribute verbatim copies of this manual provided the copyright notice and this permission notice are preserved on all copies. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Preface: Introduction: Reserved words & example: Operating systems: Libraries: Progr

    View Document


    63575 words - 255 pages

    ALIENS ET A-Z Listing compiled from many sources. There are just over 10,000,000 worlds in this universe with similar humanities to our own, this is but a few races who are or have been involved with our life wave for some reason. ________________________________________ ARCTURIANS Arcturus is one of the most advanced extraterrestrial civilizations in our galaxy. It is a fifth dimensional civilization which, in reality, is like a prototype for Earth’s future. Its energy works with humanity as an emotional mental and spiritual healer. It is also an energy

    View Document

    Lawn King

    2856 words - 12 pages

    MBA 850 OPERATIONS MANAGEMENT WINTER, 2005 INSTRUCTOR: Professor Bill Berry Office: 660A Fisher Hall Phone: 292-3173 (O) FAX: 292-1272 E-mail: [email protected] OFFICE HOURS: Monday and Wednesday 1 PM – 5 PM (or by appointment) COURSE CONTENT Operations represents a critical area for both manufacturing and service indus

    View Document


    39179 words - 157 pages

    Abstract This thesis analyzes the implications of Islamic precepts on banks' structure and activities, focusing on banking supervision issues. It points out and discusses these issues in the context of a paradigm version of Islamic banking, as well as in frameworks that fall between the paradigm version and conventional banking. The case of Islamic banks operating in a conventional system is also examined. Contents Page Summary 3 I. Introduction 4 II. Review of the Fundamental Features of Islamic Banking 6 A. Problems in Implementing th

    View Document

    Applied Psychometry

    100570 words - 403 pages

    Applied Psychometry ii Applied Psychometry Applied Psychometry Narender Kumar Chadha Copyright © Narender Kumar Chadha, 2009 All rights reserved. No part of this book may be reproduced or utilised in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval system, without permission in writing from the publisher. First published in 2009 by SAGE Publications India Pvt Ltd B1/I-1, Mohan Cooperative Industrial Area Mathura Road, New Delhi 110044, India SAGE Publications Inc 2455 Teller Road T

    View Document

    Credit Transaction

    24901 words - 100 pages

    CREDIT TRANSACTIONS include all trans actions involving the purchase or loan of goods, services or money in the present with LOAN is a contract by which one of the parties a promise to pay or deliver in the future (contract of deliv ers to another, either something not consumable security) so that the latter may use the same for a certain time and return it, in which case the contract is c alled commodaturm; or money or other consumable thing, upon the condition that the same amount of the 2 TYPES OF CREDIT TRANSACTIONS: same kind and quality shall be paid, in which case 1. – S

    View Document

    English As A Global Language

    75599 words - 303 pages

    English as a global language Second edition David Crystal, world authority on the English language, presents a lively and factual account of the rise of English as a global language and explores the whys and wherefores of the history, current status and future potential of English as the international language of communication. English has been lauded as the most ‘successful’ language ever, with 1,500 million speakers worldwide; but Crystal avoids taking sides and tells the story in a measured but engaging way, backed by facts and ?gures. This new edition of his classic book contains extr

    View Document

    The Mountain Lion

    2413 words - 10 pages

    Garcia 1 Double-spacing used throughout. John Garcia Professor Hacker English 101 7 April 1999 Title is centered. The Mountain Lion: Once Endangered, Now a Danger On April 23, 1994, as Barbara Schoener was jogging in the Sierra foothills of California, she was pounced on from behind by a mountain lion. After an apparent struggle with her attacker, Schoener was killed by Summary: citation with author’s name and page number in parentheses. bites to her neck and head (Rychnovsky 39). In 1996, because of Schoener’s death and other highly publicized attacks, California politicians

    View Document

    Climate Change

    1031 words - 5 pages

    Student: Olzhas Batyrkhanov Climates of the world – Midterm Exam 31/10/2011 1. Explain, with examples, the differences between weather and climate. At first let’s give a definition to word “climate”. Climate (from Ancient Greek klima, meaning inclination) is commonly defined as the weather averaged over a long period. Climate usually defined as the "average weather," or more strictly, as the statistical description in terms of the mean and variability of relevant quantities over a period ranging from months to thousands or millions of years. To know what average temperature in any re

    View Document

    Consumer Protection Act

    12441 words - 50 pages

    THE CONSUMER PROTECTION ACT, 1986 CHAPTER – I PRELIMINARY 1. Short title, extent, commencement and application 2. Definitions 3. Act not in derogation of any other law CHAPTER – II CONSUMER PROTECTION COUNCILS 4. The Central Consumer Protection Council 5. Procedure for meetings of the Central Council 6. Objects of the Central Council 7. The State Consumer Protection Councils 8. Objects of the State Council 8A. The District Consumer Protection Council CHAPTER – III CONSUMER DISPUTES REDRESSAL AGENCIES 9. Establish

    View Document

Other Popular Essays

Thousands of quality examples at your fingertips!

Writing doesn’t have to be hard. Essays, guides, research papers, and case studies will help you get the inspiration and competitive edge you need for your studies!