An investor bought 10 shares of stock T for $575 per share.  One year later, the investor sold the stock for $450 per share.  Calculate the return on this investment.  [Note: Do not type your answer in Canvas] [5 points]

A bank has the following:        Assets                                        Liabilities RSA   = $100 at 2%                    RSL   = $100 at 1%   NRSA = $400 at 4%                   NRSL = $400 at 3% a.  Calculate the NIM. [Note: Do not type your answer in Canvas] [6 points] b. Interpret the NIM.  [Note: Do not type your answer in Canvas] [2 points] 

What distinguishes the assets of banks from the assets of savings and loan?  [Note: Do not type your answer in Canvas] [8 points]

The expected return on the market portfolio is 6 percent and the risk-free rate is 3 percent.  The beta of stock K is 0.8.  Use the CAPM to calculate the expected return of stock K.  How risky is stock K?  [Note: Do not type your answer in Canvas] [8 points]

Do you prefer your hometown to borrow money by issuing a general obligation bond or a revenue bond?  Explain.  [Note: Do not type your answer in Canvas] [8 points]

Discuss one similarity and two differences between T-bills and T-bonds.  [Note: Do not type your answer in Canvas] [9 points]

Calculate the yield of a 10-year zero coupon bond that is selling at 80% of face value.  The face value of the bond is $1,000.  [Note: Do not type your answer in Canvas] [8 points]

A household has an annual income of $55,000 and an annual expenditure of $53,000.  Which unit is this household?  What can this household do?  [Note: Do not type your answer in Canvas] [8 points]

Explain the main difference between direct financing and indirect financing.  [Note: Do not type your answer in Canvas] [8 points]

From Question 9, if the market rate of interest has increased from 3% to 3.5%, calculate the bond price elasticity. [Note: Do not type your answer in Canvas] [8 points]