question archive 1) Past events, present events, and even discounted future events are reflected in market prices
1) Past events, present events, and even discounted future events are reflected in market prices
Subject:FinancePrice: Bought3
1) Past events, present events, and even discounted future events are reflected in market prices." Louis Bachelier.
Please substantiate this statement. You may use examples of events and/or examples of financial assets (stocks, etc.). finance comment
2) On March 1, Liza received a $10,000, 8% bond of Tesla as a present. The
bond pays $400 of interest on August 30 and December 31. How much income will Liza earn for the current year?
3) 1. A bank issues a $100,000 variable rate 30 year mortgage with a nominal annual rate of 4.5%. If the required rate drops to 4% after the first 6 months, what is the impact on the interest income for the first 12 months?
