# FIN 534 – Homework Set #2

INSTRUCTIONAL MATERIALS

Required Resources

Brigham, E. F., & Ehrhardt, M. C. (2017). Financial management (15th ed.). Mason, OH: South-Western Cengage Learning.

Supplemental Resources

Criniti, A. (2013). The necessity of finance. Philadelphia, PA: Criniti Publishing Company.

Fidelity Investments, Inc. SWOT analysis. (2013). Fidelity Investments, Inc. SWOT Analysis, 1-8.

Hasseltoft, H. (2012). Stocks, bonds, and long-run consumption risks. Journal of Financial & Quantitative Analysis, 47(2), 309-332. doi: 10.1017/S0022109012000075

Kumar, A. (2009). Who gambles in the stock market? Journal of Finance, 64(4), 1889-1933.

Homework Set #2: Chapters 4 & 5 (Work it on Excel Sheet) (Request 2 Different Excel Sheet – Mine and Hubby)

Worth 100 points

Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link above.

A. You have just won the Strayer Lottery jackpot of \$11,000,000. You will be paid in 26 equal annual installments beginning immediately. If you had the money now, you could invest it in an account with a quoted annual interest rate of 9% with monthly compounding of interest. What is the present value of the payments you will receive?

B. In your own words and using various bond websites, please locate one of each of the following bond ratings: AAA, BBB, CCC, and D. Please describe the differences between the bond ratings. Identify the strengths and weaknesses of each rating.