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WEEK #1 Problems and Issues 1) Complete Problems and Issues 1, 2, and 3 at the end of chapter 1 in the textbook. 2) Complete Problems and Issues 4 and 7 at the end of chapter 2 in the textbook. 3) Complete Problems and Issues 4 and 5 at the end of chapter 3 in the textbook. 4) You must submit your homework in a single excel file, with each problem on a separate identified tab, e.g. Problem 2 for chapter 1 would be labeled CH1-2. WEEK #2 Problems and Issues 1) Complete Problems and Issues 2 through 8 at the end of chapter 4 in the textbook. 2) Complete Problems and Issues 5 through 7 at the end of chapter 5 in the textbook. 3) Complete Problems and Issues 1, 4 through 6, and 9 at the end of chapter 6 in the textbook (For 9, assume the term equals one year). 4) You must submit your homework in a single excel file, with each problem on a separate identified tab, e.g. Problem 2 for chapter 4 would be labeled CH4-2. WEEK #3 Problems and Issues 1) Use Excel to complete Problems and Issues 1, 3, 7, 8, 10, and 14 at the end of chapter 7 in the textbook. 2) Use Excel to complete Problems and Issues 2, 4, and 5 at the end of chapter 8 in the textbook. 3) Complete Problems and Issues 3, 4, 6, 7 and 8 at the end of chapter 10 in the textbook. 4) You must submit your homework in a single excel file, with each problem on a separate identified tab, e.g. Problem 8 for chapter 14 would be labeled CH4-8. Yield Curve 1) Use data from the Bloomberg Web site, http://www.bloomberg.com/markets/rates- bonds/government-bonds/us/ (or from any other source that you prefer) to graph the shape of the yield curve today. 2) What would you say today's financial marketplace is expecting to happen to interest rates in the near future? Explain. 3) APA format is not required, but solid academic writingis expected. WEEK # 4 Problems and Issues 1) Complete Problems and Issues 2, 3, 6, 9, 10, and 11 at the end of chapter 11 in the textbook. 2) Complete Problems and Issues 4, 5, and 6 at the end of chapter 12 in the textbook. 3) You must submit your homework in a single excel file, with each problem on a separate identified tab, e.g. Problem 6 for chapter 11 would be labeled CH11-6. Midterm 1) Complete the online midterm prior to the end of the week. Go to Course Content, select the current module, and select the midterm when you are ready to begin the online midterm. 2) You will be given 90 minutes from the time that you begin the midterm to complete the questions. You will only be given one opportunity to take the midterm, and you will not be given credit for taken the midterm after the end of the week. WEEK # 5 Problems and Issues 1) Complete Problems and Issues 1, 2, 4, and 5 found at the end of chapter 13 in the textbook. 2) Complete Problems and Issues 1 through 4 found at the end of chapter 14 in the textbook. 3) You must submit your homework in a single excel file, with each problem on a separate identified tab, e.g. Problem 1 for chapter 14 would be labeled CH14-1. WEEK #6 Problems and Issues/Web-Based Problems 1) Complete Problems and Issues 1 through 4, found at the end of chap. 16 in the textbook. 2) Complete Problems and Issues 1 through 3 found at the end of chap. 17 in the textbook. 3) You must submit your homework in a single excel file, with each problem on a separate identified tab, e.g. Problem 2 for chapter 16 would be labeled CH16-2. WEEK #7 Problems and Issues 1) Complete Problems and Issues 1 and 2, found at the end of chap. 15 in the textbook. 2) Complete Problems and Issues 3 through 6, found at the end of chap. 18 in the textbook. 3) You must submit your homework in a single excel file, with each problem on a separate identified tab, e.g. Problem 3 for chapter 18 would be labeled CH18-3. 4) Submit your answers to the instructor by the end of Module 7. S&L Problem 1) The Savings and Loan (S&L) industry had an extremely difficult time during the 1980s, as interest rate levels reached new highs. The following problem illustrates the nature of these difficulties. (NOTE: This problem assumes you are familiar with the relationship between the market values of long-term, fixed-income securities and changes in the market rate of interest. See Problem and Issue 1, found at the end of chap. 6 [assigned in Module 2] if you need a refresher.) i) Assume an S&L's balance sheet is as follows. While this balance sheet is obviously over-simplified, it represents an approximation of the financial condition of many S&Ls. All values represent market values. Assets: Liabilities and Equity: Mortgage Loans $1,000,000 Deposits $1,300,000 Other Assets 600,000 Equity 300,000 Total Assets $1,600,000 Total L&E $1,600,000 ii) Assume the mortgage loan portfolio consists of 30-year, fixed-rate mortgages with an average interest rate of 5% per year. The present value of these mortgages (their principal) is currently $1,000,000. iii) Find the monthly payment for this mortgage loan portfolio, using Excel's PMT function. (HINT: Set PV = outstanding principal, NPER = the life of the mortgages (in months), and RATE = the average interest rate (per month) for the mortgage loan portfolio.) iv) Use your answer to part (iii) to determine the new market value of the mortgage loan portfolio, assuming that the market rate of interest rises to 9% per year. (HINT: Use Excel to find the PV of this portfolio, defining NPER as above, RATE = 9% per year divided by 12, and PMT = the value you obtained in part iii) In the 1980s, actual market rates of interest rose by much more than this, with mortgage rates in the range of 12% or more uncommon. v) Calculate the decline in market value of the mortgage loan portfolio that occurred by comparing your answer in part (iv) to the value of the portfolio as revealed in the balance sheet above. vi) Compare this decline in market value to the amount of equity on the S&L's balance sheet. Is the institution now insolvent? Explain. WEEK #8 Problems and Issues 1) Complete Problems and Issues 1, 2, and 3 found at the end of chap. 21 in the textbook. 2) Note: For Problem 1, use Excel to generate an answer to part (b), not the sources suggested in the textbook. 3) You must submit your homework in a single excel file, with each problem on a separate identified tab, e.g. Problem 2 for chapter 21 would be labeled CH1-2. 4) Submit your answers to the instructor by the end of Module 8. Final Exam 1) Complete the online final prior to the end of the week. Go to Course Content, select the current module, and select the final exam when you are ready to begin the online final. 2) You will be given 90 minutes from the time that you begin the final to complete the questions. You will only be given one opportunity to take the final, and you will not be given credit for taken the final after the end of the week.