Suppose that instead of funding the $100 million investment in 12 percent British loans with U. S. CDs, the FI manager in problem 15 funds the British loans with $100 million equivalent one-year pound CDs at a rate of 8 percent. Now the balance sheet of the FI would be as follows:

a. Calculate the return on the FI’s investment portfolio, the average cost of funds, and the net interest margin for the FI if the spot foreign exchange rate falls to $1.45/£1 over the year.

b. Calculate the return on the FI’s investment portfolio, the average cost of funds, and the net interest margin for the FI if the spot foreign exchange rate rises to $1.70/£1 over the year.

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)

Agovernment receives a gift of cash and investments with a fair value of $200,000. the donor specified that the earnings from the gift must be used to beautify city-owned parks and the principal must be re-invested. the $200,000 gift should be accounted for in which of the following funds? a) general fund b) private-purpose trust fund c) agency fund d) permanent fund

Describe the three different ways the argument section of a cover letter can be formatted