Suppose that you invest in a 10-year 8% Treasury Note sold at par and the interest rate drops to 6% after your purchase. What will be the Total Dollar Return and the Realized Yield if you hold the bond (a) for 3 years; (b) for 7 years; (c) to maturity. In each case, decompose the Total Dollar Return into (1) Total Coupon Interest; (2) Interest on Interest; (3) Capital Gain / Loss

How can a poor housing market put home buyers in a financially unstable position? a. changing property values means it’s easier to find homes with low rental costs. b. when the home value decreases, property taxes and insurance costs increase. c. houses are valued lower than their purchase prices, so the home equity decreases. d. home buyers lose all tax benefits and tax incentives when the housing market goes down. e. mortgage payments can increase even though the home value decreases.

cranium, inc., purchases term papers from an overseas supplier under a continuous review system. the average demand for a popular mode is 300 units a day with a standard deviation of 30 units a day. it costs $60 to process each order and there is a five−day lead−time. the holding cost for a paper is $0.25 per year and the company policy is to maintain a 98% service level. cranium operates 200 days per year.what is the reorder point r to satisfy a 98% cycleminus−service level? a. greater than 1,700 unitsb. greater than 1,600 units but less than or equal to 1,700 unitsc. greater than 1,500 units but less than or equal to 1,600 unitsd. less than or equal to 1,500 units

True or false: a fitted model with more predictors will necessarily have a lower training set error than a model with fewer predictors.