You observe the following term structure of interest rates (zero-coupon yields, also called "spot rates"). The spot rates are annual rates that are semi-annually compounded. Time to MaturitySpot Rate
0.52.00%
1.03.00%
1.53.50%
2.03.00%
2.54.00%
3.04.50%
Compute the six-month forward curve, i. e. compute f(0,0.5,1.0), f(0,1.0,1.5), f(0,1.5,2.0), f(0,2.0,2.5), and f(0,2.5,3.0). Round to six digits after the decimal. Enter percentages in decimal form, i. e. enter 2.1234% as 0.021234.
In all the following questions, enter percentages in decimal form, i. e. enter 2.1234% as 0.021234. Assume semi-annual compounding.
Compute the one-year forward rate in six months, i. e. compute f(0,0.5,1.5)
Compute the one-year forward rate in one year, i. e. compute f(0,1.0,2.0)
Compute the one-year forward rate in two years, i. e. compute f(0,2.0,3.0)
Compute the 1.5-year forward rate in six months, i. e. compute f(0,0.5,2.0)
Compute the 1.5-year forward rate in one-year, i. e. compute f(0,1.0,2.5)
Compute the 1.5-year forward rate in 1.5-years, i. e. compute f(0,1.5,3.0)
Compute the two-year forward rate in six-months, i. e. compute f(0,0.5,2.5)
Compute the two-year forward rate in one-year, i. e. compute f(0,1.0,3.0)
Compute the 2.5-year forward rate in six-months, i. e. compute f(0,0.5,3.0)

Suppose that each firm in a competitive industry has the following costs: total cost: tc=50+12q2tc=50+12q2 marginal cost: mc=qmc=q where qq is an individual firm's quantity produced. the market demand curve for this product is: demand qd=160−4pqd=160−4p where pp is the price and qq is the total quantity of the good. each firm's fixed cost is.

Onsider the following subscription behavior information from genie, a web site that provides tools for constructing a family tree (ancestor search). subscriptions cost $9.99 per month, but you are charged for the entire year at the time of purchase. there is a one-year minimum term when you sign up for the service. once purchased, subscriptions are set to renew automatically unless the subscriber cancels them. when a membership renews, it renews for a one-year term and again you are charged for the entire year. there are no variable costs associated with providing this service to an individual customer, but genie does engage in customer relationship activities that they believe will increase customer retention. these customer relationship activities cost genie about $10 per year per customer. based on a sample of 1000 customers that joined genie five years ago, near the time when the company was founded, they were able to determine how many of those customers remained subscribers in the second year, third year etc. based on this information, genie calculated the average annual retention rate to be 20%. genie uses an annual discount rate of 8%. a. last year, genie spent $10,000 placing advertisements on google. genie management believes that these advertisements were responsible for about 300 new subscribers. would you recommend to genie management that they purchase more google ads? b. suppose a newly-introduced loyalty program increases the number of customers that remained to 30%. does this new data change your answer to 9.a? c. do you have any hesitations or concerns about making recommendations to management based on your above estimate of customer lifetime value?

The stock of grommet corporation, a u.s. company, is publicly traded, with no single shareholder owning more than 5 percent of its outstanding stock. grommet owns 95 percent of the outstanding stock of staple inc., also a u.s. company. staple owns 100 percent of the outstanding stock of clip corporation, a canadian company. grommet and clip each own 50 percent of the outstanding stock of fastener inc., a u.s. company. grommet and staple each own 50 percent of the outstanding stock of binder corporation, a u.s. company. which of these corporations form an affiliated group eligible to file a consolidated tax return?