You are a market maker in treasury bonds and notes. A customer just sold you $10,000,000 in face value of STRIPS that matures in exactly 17 years. The current yield to maturity on these STRIPS is an effective annual yield of 4%. You know that it will take some time to find a buyer for this bond, so you want to hedge your exposure to changes in the 17-year yield by trading the more liquid 10-year and 30-year STRIPS. The current effective annual yields to maturity are 3% for the 10-year STRIPS and 4.5% for the 30-year STRIPS.

a. Calculate the DV01s for all three STRIPS. When calculating the values of DV01, consider a one basis point change in the effective annual yields.

b. What position in the 10-year STRIPS will hedge your position in the 17-year STRIPS?

c. What posit ion in the 30- year STRIPS will hedge your position in the 17-year STRIPS?

d. How can you decide if you are better hedged with the 10-year STRIPS or the 30-year STRIPS? No calculations are required.

Alandowner and his neighbor purchased adjoining undeveloped lots. after both built homes on their respective lots, the landowner suggested to the neighbor that a common driveway be built where the two lots joined. the neighbor agreed. the landowner and the neighbor split the cost of constructing the driveway and entered into a written agreement to equally share the costs of its upkeep and maintenance. the agreement was recorded in the county recorder's office. two years later, the neighbor built a new driveway located entirely on his lot. the common driveway, which the landowner continued to use but which the neighbor no longer used, began to deteriorate. the landowner asked the neighbor for money to maintain the common driveway, but the neighbor refused to contribute. three years later, the neighbor conveyed his lot to a friend. the friend entered into possession and used only the driveway built by the neighbor. by this time, the common driveway had deteriorated badly and contained numerous potholes. the landowner asked the friend to pay half of what it would take to repair the common driveway. the friend refused. the landowner repaired the driveway and sued the friend for 50% of the cost of repairs. will the landowner prevail?

Ireally need with these questions.6. what level of job security do athletes and sports competitors have? why do you think this is? 22. do you think a musician has more job security than an athlete? explain.37. what is the difference between a public relations specialist and a marketing professional? 47. do you think gender inequalities still exist in the sports industry? explain.50. what are the advantages and disadvantages of labor unions? do you think labor unions are fair to employers? how might they be taken advantage of?

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.