全英答案米什金《金融市场与金融机构》课后习题答案精doc.docx

全英答案米什金《金融市场与金融机构》课后习题答案精doc.docx

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全英答案米什金《金融市场与金融机构》课后习题答案精doc

米什金《金融市场与金融机构》课后习题答案

（第五版第六版通用）（1-11章）

Chapter1

WhyStudyFinancialMarkets

andInstitutions?

WhvStudyFinancialMarkets?

DebtMarketandInterestRales

TheStockMarket

TheForeignExchangeMarket

WhvStudyFinancialInstitutions?

CentralBanksand（heConductofMonetaryPolicy

StructureoflheFinancialSystem

BanksandOtherFinancia1【nstilulions

FinancialInnovation

ManagingRiskinFinancialInstitutions

AppliedManagerialPerspective

HowWeWillStudvFinancialMarketsandInstitutions

Exploring（heWeb

CollectingandGraphingData

WebExercise

ConcludingRemarks

■AnswerstoEnd-of-ChapterQuestions

I・Because（heychannelfundsfrom（hosewhodonothaveaproductiveusefor（hem（othosewhodo.（herebyresultinginhighereconomicefficiency・

2.Businesseswouldcutinvestmentspendingbecausethecostoffinancingthisspendingisnowhigher,andconsumerswouldbelesslikelytopurchaseahouseoracarbecausethecostoffinancingtheirpurchaseishigher・

3.Achangeininterestratesaffectsthecostofacquiringfundsforfinancialinstitutionaswellaschangestheincomeonassetssuchasloans,bothofwhichaffectprofits・Inaddition,changesininterestratesaffect（hepriceofassetssuchasstockandbondsthat（hefinancialinstitutionownswhichcanleadtoprofitsorlosses.

4.No.Peoplewhoborrowtopurchaseahouseoracarareworseoffbecauseitcoststhemmoretofinancetheirpurchase;however,saversbenefitbecause（heycanearnhigherinterestratesontheirsavings・

5.Thelowerpriceforafirm'ssharesmeans（hatitcanraiseasmalleramouncoffunds・andsoinvestmentinplantandequipmentwillfhll.

6.Higherstockpricesmeanthatconsumers'wealthishigherundsotheywillbemorelikelytoincrease（heirspending.

7.Itmakesforeigng（x）dsmoreexpensiveandsoBritishconsumerswillbuylessforeigngoodsandmoredomesticgoods・

8.1（makesBritishgoodsmoreexpensiverelative（oAmericangoods・Americanbusinesseswillfindi（easiertoselltheirgoodsintheUnitedStatesandabroad,andthedemandfortheirproductswill「isc.

9.Changesinforeignexchangerateschange（hevalueofassetsheldbyflnancidlinstitutionsandthuslead（ogainsandlossesontheseassets.Alsochangesinforeignexchangeralesaffcc（（heprofitsmadebytradersinforeignexchangewhoworkforfinancialinstitutions.

10.Inthemid-tolate1970sandthelate1980sandearly1990s,thevalueofthedollarwaslow,makingtravelabroadrelativelymoreexpensive;（hatwouldhavebeenagoodtimetovacationintheUnitedStatesandsectheGrandCanyon・As（hedollar'svalueroseintheearly1980（ravelabroadbecamerelativelycheaper,makingi（agoodlimetovisit（heTowerofLondon・

11・Banksacceptdepositsand（henuse（heresultingfundstomakeloans・

12.Savingsandloanassociations,mutualsavingsbanks,creditunions,insurancecompanies,mutualfunds,pensionfunds,andfinancecompanies・

13.Answerswillvary.

14.Theprofitabilityoffinancialinstitutionsisaffectedbychangesininterestrates,stockprices,andforeignexchangerates;fluctuationsinthesevariablesexposetheseinstitutionstorisk.

15.BecausetheFederalReserveaffectsinterestrates,inflation,andbusinesscycles,allofwhichhaveanimportantimpacton（heprofitabilityoffinancialinstitutions.

■QuantitativeProblems

1.ThefollowingtablelistsforeignexchangeratesbetweenUSdollarsandBritishpoundsduringApril.

Date

USDollarsperGBP

Date

USDollarsperGBP

4/1

1.9564

4/18

1.7504

4/4

1.9293

4/19

1.7255

4/5

1.914

4/20

1.6914

4/6

1.9374

4/21

1.672

4/7

1.961

4/22

1.6684

4/8

1.8925

4/25

1.6674

4/11

1.8822

4/26

1.6857

4/12

1.8558

4/27

1.6925

4/13

1.796

4/28

1.7201

4/14

1.7902

4/29

1.7512

4/15

1.7785

Whichdaywouldhavebeen（hebestday（oconvert$20（）intoBritishpounds?

Whichdaywouldhavebeentheworstday?

Whatwouldbethedifferenceinpounds?

Solution:

Thebestdayis4/25.Atarateof$1.6674/pound,youwouldhave£119.95.Theworstdayis4/7.At$1.961/pound,youwouldhave£101.99.oradifferenceof£17.96•

Chapter2

OverviewoftheFinancialSystem

■AnswerstoEnd-of-ChapterQuestions

1・TheshareofMicrosoftstockisanassetforitsownerbecauseitentitlestheownertoashareoftheearningsandassetsofMicrosoft・TheshareisaliabilityforMicrosoftbecauseitisaclaimonitsearningsandassetsby（heownerof（heshare・

2.Yes.Ishouldtakeouttheloan,becauseIwillbebetteroffasaresultofdoingso.Myinterestpaymentwillbe$4,500（90%of$5,0（X））,butasaresult,Iwillearnanadditional$10,0（X）,soIwillbeaheadofthegamebyS5,5（X）・SinceLarry、loan-sharkingbusinesscanmakesomepeoplebetteroff,asinthisexample,loansharkingmayhavesocialbenefits.（Oneargumentagainstlegalizingloansharking,however,isthati（isfrequentlyaviolentactivity.）

3・Yes,becausetheabsenceoffinancialmarketsmeansthatfundscannotbechanneledtopeoplewhohave（hemostproductiveusefor（hem.Entrepreneurs（hencannotacquirefunds（osetupbusinessesthatwouldhelp（heeconomygrowrapidly.

4.TheprincipaldebtinstnnnentsusedwereforeignbondswhichweresoldinBritainanddenominatedinpounds・TheBritishgainedbecausetheywereabletoearnhigherinterestratesasaresultoflending（oAmericans,whiletheAmericansgainedbecause（heynowhadaccess（ocapital（ostartupprofitablebusinessessuchasrailroads.

5.Thisstatemenlisfalse・Pricesinsecondaiymarketsdeterminethepricesthatfirmsissuingsecuritiesreceiveinprimarymarkets・Inaddition,secondarymarketsmakesecuritiesmoreliquidand（huseasier（osellin（heprimar}markets・Therefore,secondarymarketsarc,ifanything,moreimportant（hanprimarymarkers.

6.Youwouldratherholdbonds,becausebondholdersarepaidoffbeforeequityholders,whoare（heresidualclaimants・

7.Becauseyouknowyourfamilymemberbetterthanastranger,youknowmoreabouttheborrower'shonesty,propensityforrisktaking,andothertraits.Thereislessasymmetricinformationthanwith

astrangerandlesslikelihoodofanadverseselectionproblem,withtheresultthatyouaremorelikely（olend（othefamilymember.

9.Loansharkscanthreatentheirborrowerswithbodilyharmifborrowers（akeactionsthatmightjeopardizepayingofftheloan.Henceborrowersfromaloansharkarelesslikelytoengageinmoralhazard.

10.Theymightnotworkhardenoughwhileyouarcnotlookingormaystealorcommitfraud.

11・Yes,becauseevenifyouknowthataborroweristakingactionsthatmightjeopardizepayingofftheloan,youmuststillstop（heborrowerfromdoingso.Becausethatmaybecostly,youmaynotspend（hetimeandefforttoreducemoralhazard.andsomoralhazardremainsaproblem・

12.True.Iftherearenoinfonnationortransactionscosts,peoplecouldmakeloansloeachothera（nocostandwouldthushavenoneedforfinancialintermediaries.

13・Because（hecostsofmaking（heloan（oyourneighborarehigh（legalfees,feesforacreditcheck,andsoon）,youwillprobablynotbeabletoearn5%ontheloanafteryourexpenseseventhoughithasa10%interestnilc.Youarebetteroffdepositingyoursavingswithafinancialintennediaryandearning5%interest.Inaddition,youarelikelytobearlessriskbydepositingyoursavingsatthebankratherthanlendingthemtoyourneighbor・

14.Incrcn'cddiscussionofforeignGnancialmarkcisin（heU.S・pressand（hegrowthinmarketsforinternationalfinancialinstrumentssuchasEurodollarsandEurobonds.

Chapter3

WhatDoInterestRatesMeanandWhatisTheirRoleinValuation?

MeasuringInterestRates

Prcscn（Value

FourtypesofCreditMarketInstruments

Yield（oMaturity

GlobalBox:

NegativeT-BillRates?

JapanShowstheWay

TheDistinctionBetweenRealandNominalInterestRates

TheDistinctionBetweenInterestRatesandReturns

Mini-CaseBox:

WithTIPS.RealInterestRatesHaveBecomeObservableintheUnitedStates

MaturityandtheVolatilityofBondReturns:

Interest-RateRisk

Mini-CaseBox:

HelpingInves（orstoSeleclDesiredInterest-RateRisk

ReinvestmentRisk

Summary

ThePracticingManager:

CalculatingDurationtoMeasureInterest-RateRisk

CalculatingDuration

DurationandInterest-RateRisk

■AnswerstoEnd-of-ChapterQuestions

I.S2（XX）=S1O（）/（I+"+$100/（1+/）'+•••+$1（X）/（1+/）"+$1000/（I+if.

2.Youwouldratherbeholdinglong-termbondsbecausetheirpricewouldincreasemorethan（hepriceoftheshort-termbonds,givingthemahigherrclum.

3・No.Ifinicrcslratesrisesharplyinthefuture,long-termbondsmaysuffersuchasharpfallinprice（hat（heirreturnmightbequitelow.possiblyevennegative・

4.Peoplearemorelikelytobuyhousesbecausetherealinterestratewhenpurchasingahousehasfallenfrom3percent（=5percent一2percent）（o1percent（=10percent一9percent）.Therealcostoffinancingthehouseisthuslower,even（houghmortgageruleshaverisen.（If（he（axdeductibilityofinterestpaymentsisallowedfor,thenitbecomesevenmorelikely（hatpeoplewillbuyhouses.）

■QuantitativeProblem

1.Calculatethepresentvalueof$L（XX）zero-couponbondwith5yearstomaturityiftherequiredannualinterestrateis6%.

Solution:

PV=FJ7（I+i）”，

whereFV=1000,/=0.06,n=5

PV=747.25grandprizeis

2.Alotlcr}7claimsitsgrandprizeis$10million,payableover20yearsat$500,000peryear.If（hefirstpaymentismadeimmediately^whatis（hisgnindprizereallyworth?

Useadiscountrareof6%.

Solution:

Thisisasimplepresentvalueproblem.Usingufinancialcalculator:

N=2（）;PA/r=5（XHXX）;AV=0;/=6%;PintsinBEGINmode.

ComputePV\P