Riding the Tide: Navigating Through a Rising Interest Rate Environmenticiciprumf
We highlight our view on the rise in interest rates and the measures we have taken in our debt scheme portfolios to sail through the volatility in the fixed-income market. Check out the PDF to know more.
Wayne lippman present s bonds and their valuationWayne Lippman
Bonds are simply long-term IOUs that represent claims against a firm’s assets.
Bonds are a form of debt
Bonds are often referred to as fixed-income investments.
Key Features of a Bond
Debt instrument issued by a corp. or government.
Par value = face amount of the bond, which is paid at maturity (assume $1,000).
Coupon rate – stated interest rate (generally fixed) paid by the issuer. Multiply by par to get dollar payment of interest.
Swaps explained. Very useful for CFA and FRM level 1 preparation candidates. For a more detailed understanding, you can watch the webinar video on this topic. The link for the webinar video on this topic is https://www.youtube.com/watch?v=JKBKnxM2Nj4
You have just graduated from the MBA program of a large university, and one of your favorite courses was “Today’s Entrepreneurs.” In fact, you enjoyed it so much you have decided you want to “be your own boss.” While you were in the master’s program, your grandfather died and left you $300,000 to do with as you please. You are not an inventor and you do not have a trade skill that you can market; however, you have decided that you would like to purchase at least one established franchise in the fast foods area, maybe two (if profitable). The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is three years. After three years you will sell off your investment and go on to something else.
You have narrowed your selection down to two choices; (1) Franchise L: Lisa’s Soups, Salads, & Stuff and (2) Franchise S: Sam’s Wonderful Fried Chicken. The net cash flows shown below include the price you would receive for selling the franchise in year 3 and the forecast of how each franchise will do over the three-year period. Franchise L’s cash flows will start off slowly but will increase rather quickly as people become more health conscious, while Franchise S’s cash flows will start off high but will trail off as other chicken competitors enter the marketplace and as people become more health conscious and avoid fried foods. Franchise L serves breakfast and lunch, while franchise S serves only dinner, so it is possible for you to invest in both franchises. You see these franchises as perfect complements to one another: you could attract both the lunch and dinner crowds and the health conscious and not so health conscious crowds with the franchises directly competing against one another.
1 Economics 211 Due Thursday, March 5, 2020 Spring.docxadkinspaige22
1
Economics 211 Due Thursday, March 5, 2020
Spring Semester Professor John Duca
Homework #2 (NOTE: Assignments to be handwritten except for approved disabilities or
approved circumstances. Assignments are to be turned in by the BEGINNING of class
on the due date or into my mailbox in the Economics Department (223 Rice Hall) by the
beginning of class on the due date. WHERE YOU CAN, SHOW THE FORMULAS
THAT YOU ARE USING AND ANY RELEVANT CALCULATIONS.
1) Using the more complicated 2-axis, supply and demand framework for bonds
presented in class (bond prices on the left y-axis, and INVERTED interest rates on
the right y-axis), illustrate an initial equilibrium and then show which curve will
likely shift (or curves shift) (if any) in response to the following changes in market
conditions. In each case, state what happens to the bond price and what happens to
the interest rate (up, down, or unchanged) (20 points). Use separate diagrams for (a)
and for (b).
a) There is a fall in expected inflation.
b) There is a business cycle expansion in a non-U.S. economy.
2) Using the supply and demand framework for money presented in chapter 5 of the
Mishkin text, illustrate what happens to the equilibrium quantity of money held and
interest rates if the following events occurred. In each case, assume that there are no
income, price level, or expected inflation effects—that is only consider the initial
liquidity effects: (10 points)
a) The risk of currency fraud rises so that currency has become less accepted
as a means of payment by many firms or entail much longer delays to
verify that the currency is not counterfeit. Illustrate what happens to the
demand for money. Illustrate what happens if, in response, the Federal
Reserve alters the supply of money so that bond prices (and thus interest
rates) are unchanged.
b) There is a large change in expectations such that people see stocks as a
much more attractive investment. As a result, people shift toward stocks
and away from money market mutual funds and savings deposits.
Illustrate what happens if, in response, the Federal Reserve alters the
supply of broadly defined money (that is, M2) so that bond prices (and
thus interest rates) are unchanged.
2
3) Suppose a central bank wants to stimulate the economy by lowering interest rates
through expanding the money supply under the following conditions. Illustrate how
interest rates change over time using the appropriate framework from the appropriate
section of Mishkin’s textbook (this was covered in class). Clearly indicate when the
monetary action occurs, and label which type or types of effects on interest rates are
occurring at different times. (15 points)USE SEPARATE DIAGRAMS for 3a & 3b
a) Suppose that you are in a country that has a great reputation for stabilizing long-
run inflation. Suppose that in response to slowing aggregate demand, the central
bank.
Financing Assumptions Please assume a traditional bank cons.pdfactocomputer
Financing Assumptions: Please assume a traditional bank construction loan for this project. That
means equity up-front.
1. Loan to Cost: 65%
2. Interest Rate: 6.00%
3. Recordation Tax: 2.50%
4. Financing Fees: 1.50%
Please include the following as part of your model:
1. Sources and Uses Table
2. Returns
a. Unlevered IRR
b. Levered IRR
c. Equity Multiple
d. Stabilized Yield
e. Stabilized Cash on Cash
3. Data Tables Measuring IRR at the following:
a. Tenant 1 rents ($1/SF increments) vs cap rates
b. Land purchase price ($5 / SF increments) vs debt interest rate (0.25% increments)
c. Tenant 2 rents ($2 / SF increments) vs TIs ($10 / SF increments)
4. Please build a waterfall reflecting the following:
a. 5% GP Investment / 95% LP Investment
b. Pari Passu until a 8% return
c. 20% to the GP and 80% to the LP until a 12% return
d. 30% to the GP and 70% to the LP until a 15% return
e. 40% to the GP and 60% to the LP thereafter
please provide the answers in excel sheet.
Riding the Tide: Navigating Through a Rising Interest Rate Environmenticiciprumf
We highlight our view on the rise in interest rates and the measures we have taken in our debt scheme portfolios to sail through the volatility in the fixed-income market. Check out the PDF to know more.
Wayne lippman present s bonds and their valuationWayne Lippman
Bonds are simply long-term IOUs that represent claims against a firm’s assets.
Bonds are a form of debt
Bonds are often referred to as fixed-income investments.
Key Features of a Bond
Debt instrument issued by a corp. or government.
Par value = face amount of the bond, which is paid at maturity (assume $1,000).
Coupon rate – stated interest rate (generally fixed) paid by the issuer. Multiply by par to get dollar payment of interest.
Swaps explained. Very useful for CFA and FRM level 1 preparation candidates. For a more detailed understanding, you can watch the webinar video on this topic. The link for the webinar video on this topic is https://www.youtube.com/watch?v=JKBKnxM2Nj4
You have just graduated from the MBA program of a large university, and one of your favorite courses was “Today’s Entrepreneurs.” In fact, you enjoyed it so much you have decided you want to “be your own boss.” While you were in the master’s program, your grandfather died and left you $300,000 to do with as you please. You are not an inventor and you do not have a trade skill that you can market; however, you have decided that you would like to purchase at least one established franchise in the fast foods area, maybe two (if profitable). The problem is that you have never been one to stay with any project for too long, so you figure that your time frame is three years. After three years you will sell off your investment and go on to something else.
You have narrowed your selection down to two choices; (1) Franchise L: Lisa’s Soups, Salads, & Stuff and (2) Franchise S: Sam’s Wonderful Fried Chicken. The net cash flows shown below include the price you would receive for selling the franchise in year 3 and the forecast of how each franchise will do over the three-year period. Franchise L’s cash flows will start off slowly but will increase rather quickly as people become more health conscious, while Franchise S’s cash flows will start off high but will trail off as other chicken competitors enter the marketplace and as people become more health conscious and avoid fried foods. Franchise L serves breakfast and lunch, while franchise S serves only dinner, so it is possible for you to invest in both franchises. You see these franchises as perfect complements to one another: you could attract both the lunch and dinner crowds and the health conscious and not so health conscious crowds with the franchises directly competing against one another.
1 Economics 211 Due Thursday, March 5, 2020 Spring.docxadkinspaige22
1
Economics 211 Due Thursday, March 5, 2020
Spring Semester Professor John Duca
Homework #2 (NOTE: Assignments to be handwritten except for approved disabilities or
approved circumstances. Assignments are to be turned in by the BEGINNING of class
on the due date or into my mailbox in the Economics Department (223 Rice Hall) by the
beginning of class on the due date. WHERE YOU CAN, SHOW THE FORMULAS
THAT YOU ARE USING AND ANY RELEVANT CALCULATIONS.
1) Using the more complicated 2-axis, supply and demand framework for bonds
presented in class (bond prices on the left y-axis, and INVERTED interest rates on
the right y-axis), illustrate an initial equilibrium and then show which curve will
likely shift (or curves shift) (if any) in response to the following changes in market
conditions. In each case, state what happens to the bond price and what happens to
the interest rate (up, down, or unchanged) (20 points). Use separate diagrams for (a)
and for (b).
a) There is a fall in expected inflation.
b) There is a business cycle expansion in a non-U.S. economy.
2) Using the supply and demand framework for money presented in chapter 5 of the
Mishkin text, illustrate what happens to the equilibrium quantity of money held and
interest rates if the following events occurred. In each case, assume that there are no
income, price level, or expected inflation effects—that is only consider the initial
liquidity effects: (10 points)
a) The risk of currency fraud rises so that currency has become less accepted
as a means of payment by many firms or entail much longer delays to
verify that the currency is not counterfeit. Illustrate what happens to the
demand for money. Illustrate what happens if, in response, the Federal
Reserve alters the supply of money so that bond prices (and thus interest
rates) are unchanged.
b) There is a large change in expectations such that people see stocks as a
much more attractive investment. As a result, people shift toward stocks
and away from money market mutual funds and savings deposits.
Illustrate what happens if, in response, the Federal Reserve alters the
supply of broadly defined money (that is, M2) so that bond prices (and
thus interest rates) are unchanged.
2
3) Suppose a central bank wants to stimulate the economy by lowering interest rates
through expanding the money supply under the following conditions. Illustrate how
interest rates change over time using the appropriate framework from the appropriate
section of Mishkin’s textbook (this was covered in class). Clearly indicate when the
monetary action occurs, and label which type or types of effects on interest rates are
occurring at different times. (15 points)USE SEPARATE DIAGRAMS for 3a & 3b
a) Suppose that you are in a country that has a great reputation for stabilizing long-
run inflation. Suppose that in response to slowing aggregate demand, the central
bank.
Financing Assumptions Please assume a traditional bank cons.pdfactocomputer
Financing Assumptions: Please assume a traditional bank construction loan for this project. That
means equity up-front.
1. Loan to Cost: 65%
2. Interest Rate: 6.00%
3. Recordation Tax: 2.50%
4. Financing Fees: 1.50%
Please include the following as part of your model:
1. Sources and Uses Table
2. Returns
a. Unlevered IRR
b. Levered IRR
c. Equity Multiple
d. Stabilized Yield
e. Stabilized Cash on Cash
3. Data Tables Measuring IRR at the following:
a. Tenant 1 rents ($1/SF increments) vs cap rates
b. Land purchase price ($5 / SF increments) vs debt interest rate (0.25% increments)
c. Tenant 2 rents ($2 / SF increments) vs TIs ($10 / SF increments)
4. Please build a waterfall reflecting the following:
a. 5% GP Investment / 95% LP Investment
b. Pari Passu until a 8% return
c. 20% to the GP and 80% to the LP until a 12% return
d. 30% to the GP and 70% to the LP until a 15% return
e. 40% to the GP and 60% to the LP thereafter
please provide the answers in excel sheet.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
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RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
What are the main advantages of using HR recruiter services.pdfHumanResourceDimensi1
HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
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Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
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3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.