Taxation Law and Practice Finance Taxable Purposes

Question: Describe about the Taxation Law and Practice for Finance Taxable Purposes. Answer: Overview This entire assignment speaks about Australian taxation laws. By giving example of a company who deals in funeral services and ancillary activities, aspects of their transactions and their method of taxation are put into context. By referring to the Arthur Murray case, question has been raised as to what method is to be followed to assess income derived. Two methods have been discussed according to Income Tax Assessment Act, 1976. They are based on terms of when cash is received and when there is occurrence of a debt. The time for assessment is found necessary to determine as to when income should be considered for taxable purposes. Here it is also shown that how the company is paying cash dividend and its treatment of tax, rental storage space taken on lease and the treatment for tax for long service leave account. Tax treatment has also been shown for the various kinds of expenditures made by the company. Part A. Arthur Murray (NSW) PTY LTD V FC OF T (1965) 114 CLR 314 Facts The taxpayer in this case, Arthur Murray ran a business of teaching dance. He used to take fees first and then used to provide lessons. He used to give discounts to his students so they would be attracted to come to him. The tuition fees which he used to get in advance used to be entered in a suspense account as a subheading unearned deposits- untaught lessons account. When he used to finish giving the tuitions, Arthur used transfer a sum of money from the suspense account to the revenue account which matched to the actual fees for the dancing lessons provided. It was usually distinctly agreed between Arthur and his students advance tuition money would not be subject to return. However Arthur used to return the money for lessons not provided. Arthur never used to mention advance tuition money as income derived until the time he had given the actual tuition. This practise was followed though he used to get advance tuition money ("Australian Taxation Study Manual", 2016). When calculat ing his earnings, Arthur used to take into consideration only that money that was taxable and related to the dance classes in those particular years. Contention/Rebuttal The Commissioner of Income Tax came into the conclusion that the teacher used to get his earnings on a receipt basis which basically means that his tax would be calculate on the date he gets the money though he had provided lessons or not. So he decided to categorize his advance tuition money under his taxable income according to s 25(1) of the Income Tax Assessment Act 1936 (Cth ("INCOME TAX ASSESSMENT ACT 1997", 2016)). Issues The question that was discussed in the case was that whether Arthur calculated and declared his advance tuition money in the year he had actually given the tuition or the year when he had actually received the tuition money. Verdict Three judges presided the hearing of the present case held in the High Court. They were Chief justice Barwick, Justice Taylor and Justice Kitto. They derived that: The teacher had depicted the tuition fees to be received in the year when he had given it and not on the year he had actually got the fees. General norms suggest that an income of a person cannot be related to money given earlier to the service for which it is paid. Accounting and commercial norms do not support in case of a trade involving buying and selling of goods and services, money paid in advance. Such transaction cannot be termed as income. The judges completely agreed to this point and did not find any points to disagree. Though it was expressly agree between Arthur and his students that the advance tuition money would not be given back, he used to give back money for which lessons were not provided. Hence it was not possible for Arthur to treat that revenue as income since he might have returned that money as refund. So question arose in that scenario where the receipt is registered without actual money is entered as income. It was held that one could not be taxed or charged just because he/she receives earlier than the service or goods provided. The earning or revenue will remain as proper income even if the mode of receiving the money is different. No legal obstacles can be imposed on the receiver because he/she wishes to operate it at their own free will. However it is the duty of the receiver of the money which not actually earned to be kept for situations when the money could be have to be returned if the situation of money for value is not satisfied. The revenue pattern holds a characteristic w here money might be returned. The judges felt that the present scenario is quite different and they acknowledge the facts but it could also be possible that the money received had the characteristic of assessable tax money of the taxpayer. i) When income is derived? According to section 6 sub section 5 of Income Tax Assessment Act of 1997, taxpayers must take into consideration the regular earnings received across the year of earning while assessing income for year of income. According to Brent v FC of T 71 ATC 4195, tax laws have not defined the term derived. They do not have any process as general method to discover the total earnings received by the taxpaying person. Since there is no definite law income derivation is found by applying day to day commercial norms (Tiley, 2004). There are two business accepted ways that helps in finding income: Cash Basis: Also known as the receipts basis, under this method income is determined when one gets cash or something that can be converted to cash is received. According to Section 6 Subsection 5 part 4 of the ITAA Act 1997, in determining whether the person paying tax has received regular money, it is considered that the person received the income as soon as he applied for it. This rule will function when person owing money to the taxpayer directly gives the money to the person to whom the taxpayer owes money. Accruals basis: Also known as the earnings basis income is determined when the taxpayer actually earns it. This occurs when debt comes into picture. This situation takes place when services are given or necessary goods are provided, and an invoice has been given by the taxpayer to the buyer. Here the customer might not pay for the goods or services. While analysing the incomes from the funeral services and associated activities it can be asserted that all those fees which are yet to be received by the company, e.g. fees yet to be paid under the net, 30 days invoice and the fees to be derived from the contracts of external insurance for which invoices under the net, 30 days are issued are income according to earnings basis. They are those services whose payments will only be received when the services are going to be provided. Income under the receipts basis is the money received from RIP Finance Pty Ltd providing advance money. Also the money which is given by the customers periodically for future funeral purposes come under the receipts scheme. When the money is paid then only arrangements for funeral is made. Relation of the Arthur Murray case with the present case In the Arthur Murray case, the dance teacher used to take money in advance from the students and provide services post payment. However he would return the payments if he could not provide the lessons. There was a contingency for the refund of money. Otherwise his income could be treated under the receipts basis. Similarly in this case Easy Funeral Plan was a plan where money was provided in advance by the clients for future funerals. Services were only provided when the money got paid. However unlike the other case no money was returned or remitted. Hence income can be assessed for tax purpose on the date when contributions were made. Tax payers role in method of accounting for tax Section 6-5 subsection 2 and 3 of Income Tax Assessment Act, 1997 says that taxpayers have to put their total income under the ambit of income which is assessable for tax purposes. There are no hard guidelines for taxpayers of the method of keeping accounts. It is the choice of taxpayer to choose the method of accounting which would help in the proper portrayal of his income for that particular year. The methods are on the basis of receipts or earnings. In terms of cash basis, time for assessing income is when money is received though service or goods are not provided. In case of earnings basis, income is actually considered when service or goods is provided and money is due for payment. Forfeited Accounts Payment Treatment By showing the money transferred from Easy Funeral Plan to Forfeited Payments Account tax assessibility cannot be avoided because the company used to collect money before providing services. In this case the defaulting payers were not provided services. So not getting money for services not provided did not create any transaction. The income received from the plan would still be assessed under receipts basis since money was received before providing of service. Part B:- Nature of trading stock and tax treatment for that:- As per the section 70-10 of the income tax assessment act 1997, the stock in the nature of trading can be explained as any substance produced or acquired or manufactured which is held for the intention of construct, sale or exchange in the general course of business. Therefore, an item can only be trading stock if it is capable of sale as part of a trade, or if it goods, property or services in the process of production but not yet completed. RIP Pty Ltd. is a private limited company which is holding a collection of three types of caskets along with a variety of accessories for trading purpose. So these stocks kept by the company should be taken into considerations tor the purpose of computation of tax. Now the company will get a delivery of supplies for which it has already made a payment of $25000 in June 2016 but the good will be received by the company on August 2016. The concerned company can classify their methods of earnings under two heads:-receipt method as well as earnings method. Receipt method is a technique in which the earnings is detected when it is arriving not when it is accrued as per the section 6-5(4) of ITAA 1997. It is also termed as cash received basis. On the other hand, Earning method is a technique in which profits is derived as soon as it is earned. It is also termed as accrual method. As per the situation stated above, the company that is ROP Pty Ltd is prepaying the money on June 2016 whose original date of payment is August 2016. For the taxation purpose of small business enterprise as well as non business enterprise especially in the case of prepaid payments then for that particular situation then the payments will be deductable when the service period exceeds a time gap of 12 months. A prepaid expenditure is the expenses that are to be incurred under a contract for something to be done in the next accounting year. If the expenditure is incurred for something that was to be done in full withinthisincome year, that is, 1July 2016 to 30June 2017, it is not a prepaid expense and the prepayment rules do not apply (Ato, 2016). Thus, for $25000 no treatment for tax is to be made because the prepaid expenses is incurred in June 2016 but the goods are to be received by the company within the same accounting year. Adjustment with regards to items (ii), (iii), (iv) for taxation purpose:- Dividends are received by the shareholders when paid. Any kind of cash dividend that the resident shareholders of Australia receive forms a part of the taxable earnings from Australia. The dividend which is paid in cash may fully or partially be franked according to the Australian Dividend computation method. Franked Dividend is the kind of dividend in Australia which abolishes the method of dual taxation of dividend. Any kind of franking credits involved with dividends naturally creates an element of taxable earnings in Australia. On the other hand, the individual is allowed to get a refund of tax based in the franking credits involved to dividends. If the taxable earnings of the individual is too small to make the individual accountable to pay tax or overall tax burden falls below the franking credits then the individual will be permitted to obtain reimbursement from the taxation organization of Australia over and above the franking credits. Any Company of Australia is not entitled to receive any compensation but can carry forward the tax laws for utilizing it against future earnings (Nab.com.au, 2016). If the company owns a rental property from where it receives earnings then it can demand for any expenses related with the income. The expenditure related to the owning and functioning rental property should be deductable to tax. There are few examples of rental property expenses for which we can claim tax return such as legal expenses, lease costs (registration, stamp duty) repairs and maintenance etc (Etax.com.au. 2016). The payment for yearly, sick and LSL will not be deductable unless it is compensated. In this case the managing director of the company has commenced three months long service leave for which the company has paid him in advance and the amount is $22000. Thus the amount of $22000 is being deductable under the taxable provision. Deductions available for expenditure in item (v) On-site car parking:- Cost specifically excludes ~ costs that are not of a capital nature: s40à ¢Ã¢â€š ¬Ã‚ 220; ~ costs that are deductible elsewhere: s40à ¢Ã¢â€š ¬Ã‚ 215 Particulars Amount to be deducted Amount to be taxable Amount to be deductable $57466 Nil Taxable amount ($125000-$57466) $67534 Depreciating asset:à ¢Ã¢â€š ¬Ã‚  Asset that has a limited effective life; and is reasonably expected to decline in value over the period of use. But it excludes: Land and trading stock Intangibles (generally) The taxable income for the year 2015-16:- Particulars Amount Amount Franked cash dividend $21000 Rental storage space $47500 Long service leave account $22000 Onsite car parking $40000 Land Nil Preliminary architecture design $250000 Total 380500 Reference:- Australian Taxation Study Manual. (2016). Google Books. Retrieved 8 September 2016, from https://books.google.com.au/books?id=B0eIbwlkK6gCpg=PA250lpg=PA250dq=i%09Arthur+Murray+(NSW)+PTY+LTD+V+FC+OF+T+(1965)+114+CLR+314source=blots=iEYTheL_2Fsig=X4K4JsOx5yGn4jtJ7sJlJuTZrQwhl=ensa=Xved=0ahUKEwjP8efI5__OAhVJtY8KHclkDpMQ6AEIRzAI#v=onepageq=i%09Arthur%20Murray%20(NSW)%20PTY%20LTD%20V%20FC%20OF%20T%20(1965)%20114%20CLR%20314f=false Etax.com.au. (2016). Rental Property Tax Deductions: Remember to Claim These. [online] Available at: https://www.etax.com.au/rental-property-expenses [Accessed 8 Sep. 2016]. INCOME TAX ASSESSMENT ACT 1997. (2016). Austlii.edu.au. Retrieved 8 September 2016, from https://www.austlii.edu.au/au/legis/cth/consol_act/itaa1997240/ Nab.com.au. (2016). Detailed tax information about dividends (Cash Dividend, DRP, and BSP). [online] Available at: https://www.nab.com.au/about-us/shareholder-centre/dividend-information/detailed-tax-information-about-dividends-cash-dividend-drp-and-bsp# [Accessed 8 Sep. 2016]. Tiley, J. (2004). Studies in the history of tax law. Oxford: Hart. Ato.gov.au. (2016).Deductions for prepaid expenses 2014-15 | Australian Taxation Office. [online] Available at: https://www.ato.gov.au/Forms/Deductions-for-prepaid-expenses-2014-15/?page=2 Ato.gov.au. (2016).Vacant land | Australian Taxation Office. [online] Available at: https://www.ato.gov.au/General/Property/Land---vacant-land-and-subdividing/Vacant-land/ [Accessed 14 Sep. 2016].

Solutions Ch Essay Example

Solutions Ch Paper The conversion factor for a bond is equal to the quoted price the bond would eave per dollar of principal on the first day of the delivery month on the assumption that the interest rate for all maturities equals 6% per annum (with semiannual compounding). The bond maturity and the times to the coupon payment dates are rounded down to the nearest three months for the purposes of the calculation. The conversion factor defines how much an investor with a short bond futures contract receives when bonds are delivered, If the conversion factor is 1. 2345 the amount investor receives is calculated by multiplying 1. 345 by the most recent futures price and adding accrued interest, Problem A Arteriolar futures price changes from 36. 76 to 9682. What is the gain or loss to an investor who is long two contracts? The Arteriolar futures price has increased by 6 basis points. The investor makes again per contract of or $300 in total. Problem 6. 5. What is the purpose Of the convexity adjustment ma de to Arteriolar futures rates? Why is the convexity adjustment necessary? Suppose that a Arteriolar futures quote is 95. 00. This gives a futures rate of 5% for the three-month period covered by the contract. The convexity adjustment is the amount by which futures rate has to be reduced to give an estimate of he forward rate for the period. The convexity adjustment is necessary because a) the futures contract is settled daily and b) the futures contract expires at the beginning of the three months. 80th of these lead to the futures rate being greater than the forward rate, problem 6,6, The 350-day LABOR rate is 3% with continuous compounding and the forward rate calculated from a Arteriolar futures contract that matures in 350 days is 3. 2% with continuous compounding. Estimate the 440-day zero rate. From equation (6. ) the rate is or 3. 0409%. Problem 6. 7. It is January 30. YOU are managing a bond portfolio worth 56 million. The duration of the portfolio in six months will be 8. 2 years. The September Treasury bond futures price is currently 108-15, and the cheapest-to-deliver bond Will have a duration of 7. 6 years in September. How should you hedge against changes in interest rates ov er the next six months? The value of a contract is The number of contracts that should be shorted is Rounding to the nearest whole number, 60 contracts should be shorted. The position should be closed out at the end of July. Problem 6. , The price of a 90-day Treasury bill is quoted as 10. 00. What continuously compounded return (on an actual/ASS basis) does an investor earn on the Treasury bill for the 90-day period? The cash price of the Treasury bill is The annulled continuously compounded return is Problem 6. 9. It is May 5, 2011. The quoted price off government bond with a 12% coupon that matures on July 27, 2014, is 110-17. What is the cash price? The number Of days between January 27, 2011 and May 5, 2011 is 98. The number of days between January 27, 201 1 and July 27, 2011 is 181. The accrued interest is therefore The quoted price is 110. 312. The cash price is therefore or $113. 78. Problem 6. 10. Suppose that the Treasury bond futures price is 101-12. Which of the followin g tour bonds is cheapest to deliver? Bond Price Conversion Factor 125-05 1 _2131 142-15 1. 3792 115-31 1. 1149 144-02 1. 4026 The cheapest-to-deliver bond is the one for which is least. Calculating this factor for each of the 4 bonds we get Bond 4 is therefore the cheapest to deliver. Problem 6,11_ It is July 30, 2013. The cheapest-Weedier bond in a September 2013 Treasury bond futures contract is a 13% coupon bond, and delivery is expected to be made on September 30, 2013. We will write a custom essay sample on Solutions Ch specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Solutions Ch specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Solutions Ch specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Coupon payments on the bond are made on February 4 and August 4 each year. The term Structure is flat, and the rate Of interest with semiannual compounding is 12% per annum. The conversion factor for the bond is IS. The current quoted bond price is $110. Calculate the quoted futures price for the contract. There are 176 days between February 4 and July 30 and 181 days between February 4 and August 4. The cash price of the bond is, therefore: The rate of interest with continuous compounding is or 11. 65% per annum. A coupon of 6. 5 will be received in 5 days years) time. The present value of the coupon is The futures contract lasts for 62 days years). The cash tortures price it the contract were written on the bond would be At delivery there are 57 days of accrued interest. The quoted futures price if the contract were written on the 13% bond would therefore be Taking the conversion factor into account the quoted futures price should be: Problem 6. 12. An investor is looking for arbitrage opportunities in the Treasury bond futures market. What complications are created by the fact that the party With a short position can choose to deliver any bond with a maturity of over 15 years? If the bond to be delivered and the time of delivery were known, arbitrage old be straightforward. When the futures price is too high, the arbitrageur buys bonds and shorts an equivalent number of bond futures contracts. When the futures price is too low, the arbitrageur shorts bonds and goes long an equivalent number of bond futures contracts. Uncertainty as to which bond will be delivered introduces complications. The bond that appears cheapest-to- deliver now may not in fact be cheapest-to-deliver at maturity. In the case where the futures price is too high, this is not a major problem since the party with the short position (i. . , the arbitrageur) determines which bond is to be delivered, In he case where the futures price is too low, the arbitrageurs position is tar more difficult since he or she does not know which bond to short; it is unlikely that a profit can be locked in for all possible outcomes. Problem 6. 13. Suppose that the nine-month LABOR interest rate is 8% per ann um and the six- month LABOR interest rate is 7 per annum (both with actual/ASS and continuous compounding). Estimate the three-month Arteriolar futures price quote for a contract maturing in six months. The forward interest rate for the time period between months 6 and g is per annum with continuous compounding. This is because 9% per annum for three months when combined With 7% per annum for six months gives an average interest rate of 8% per annum for the nine-month period. With quarterly compounding the forward interest rate is or 9. 102%. This assumes that the day count is actual/actual. With a day count of actual/360 the rate is The three-month Arteriolar quote for a contract maturing in six months is therefore Problem 6. 14. Suppose that the 300-day LABOR zero rate is and Arteriolar quotes for contracts maturing in 300, 398 and 489 days are 95. 83, 95. 62, and 95. 48 Calculate 98-day and 489-day LABOR zero rates, Assume no difference between forward and futures rates for the purposes of your calculations. The forward rates calculated form the first two Arteriolar futures are 4. 17% and 4. 38%_ These are expressed with an actual/ICC day count and quarterly compounding. With continuous compounding and an actual/365 day count they are and 4. 4167%. It follows from equation (6. 4) that the 398 day rate is (4000+4. 060x38V 398=4. 0507 or 4. 0507%. The 489 day rate is (4. 0507098+4. 4167* 188 or 4. 1188%. We are assuming that the first futures rate applies to 98 days rather than the usual 91 days. The third futures quote is not needed. Problem 6. 15. Suppose that a bond portfolio with a duration of 12 years is hedged using a futures contract in which the underlying asset has a duration of four years. What is l ikely to be the impact on the hedge of the fact that the 12-year rate is less volatile than the tour-year rate? Duration-based hedging procedures assume parallel shifts in the yield curve. Since the 12-year rate tends to move by less than the 4-year rate, the portfolio manager may find that he or she is over-hedged. Problem 6. 16. Suppose that it is February 20 and a treasurer realizes that on July 1 7 the many will have to issue $5 million of commercial paper with a maturity of 180 days If the paper were issued today, the company would realize (In other words, the company would receive $4,820,000 for its paper and have to redeem it at in 180 days time. ) The September Arteriolar futures price is quoted as 92. 00. How should the treasurer hedge the companys exposure? The company treasurer can hedge the companys exposure by shorting Arteriolar futures contracts. The Arteriolar futures position leads to a profit if rates rise and a loss if they fall. The duration Of the commercial paper is nice that of the Arteriolar deposit underlying the Arteriolar futures contract. The contract price of a Arteriolar futures contract is 980,000. The number of contracts that should be shorted is, therefore, Rounding to the nearest whole number 10 contracts should be shorted. Problem 6. 17. On August 1 a portfolio manager has a bond portfolio worth $10 million. The duration of the portfolio in October will be 7. Years, The December Treasury bond futures price is currently 91-12 and the cheapest-to-deliver bond will have a duration of 8. 8 years at maturity. How should the portfolio manager minimize he portfolio against changes in interest rates over the next two months? The treasurer should short Treasury bond futures contract. If bond prices go down, this futures position will provide offsetting gains. The number of contracts that should be shorted is Rounding to the nearest whole number 88 contracts should be shorted. Problem 6. 18. HOW can the portfolio manager change the duration Of the portfolio to 3. Years in Problem 6. 17? The answer in Problem 6. 17 is designed to reduce the duration to zero. To reduce the duration from 7. 1 to 3. 0 instead of from 7. 1 to O, the treasurer should short or 51 contracts. Problem 6. 9. Between October 30, 2012, and November l, 2012, you have a choice between owning a LIES. Government bond paying a 12% coupon and a LIES. Corporate bond paying a coupon. Consider carefully the day count conventions discussed in this chapter and decide which of the two bonds you would prefer to own. Ignore the risk of default, You would prefer to own the Treasury bond. Under the 30/360 day count convention there is one day between October 30 and November 1. Under the actual/actual (in period) day count convention, there are two days, Therefore you would earn approximately twice as much interest by holding the Treasury bond. Problem 6. 20. Suppose that a Arteriolar futures quote is 88 for a contract maturing in 60 days. What is the LABOR poniard rate for the 60- to 150-day period? Ignore the difference between futures and forwards for the purposes Of this question. The Arteriolar futures contract price Of 88 means that the Arteriolar futures rate is 12% per annum with quarterly compounding. This is the forward rate for the 60. To 150. Day period with quarterly compounding and an actual/360 day count convention. Problem 6. 21. The three-month Arteriolar futures price for a contract maturing in six years is quoted as 95. 0, The standard deviation of the change in the short-term interest rate in one year is 1. 1%. Estimate the forward LABOR interest rate tort the period between 6. 00 and 6. 25 years in the future, Using the notation of Section 6,3, , , and The convexity adjustment is or about 23 basis points. The futures rate is with quarterly compounding and an actual,BIB day count. This becomes with an actual/actual day count. It is faith continuous compounding. The forward rate is therefore with continuous compounding. Problem 6. 22. Explain Why the forward interest rate is less than the corresponding futures interest rate calculated from a Arteriolar futures contract. Suppose that the contracts apply to the interest rate between times and . There are two reasons for a difference between the forward rate and the futures rate. The first is that the futures contract is settled daily whereas the forward contract is settled once at time . The second is that without daily settlement a futures contract would be settled at time not . Both reasons tend to make the futures rate greater than the forward rate. Further Questions problem 6,23 The December Arteriolar futures contract is quoted as 98. 40 and a company Lana to borrow $8 million for three months starting in December at LABOR plus 0. 5%. (a) What rate can then company lock in by using the Arteriolar futures contract? (b) What position should the company take in the contracts? (c) Fifth actual three-month rate turns out to be 1. 3%, what is the final settlement price on the futures contracts, Ignore timing mismatches between the cash flows from the Arteriolar futures contract and interest rate cash flows. A) The company can lock in a 3-month rate of 100 98. 4=1. 60%. The rate it pays is therefore locked in at 1. 6 * O. S = 2. 1%. (b) The company should sell (i. . , short) 8 contracts. If rates increase, the futures quote goes down and the company gains on the futures. Similarly, if rates decrease, the futures quote goes up and the company loses on the futur es. (c) The final settlement price is 100 1. 30 = 98. 70. Problem 624 A Arteriolar futures quote for the period been 5. 1 and 5. 35 year in the future is 97. 1. The standard deviation of the change in the short. Term interest rate in one year is 1. %. Estimate the foamed interest rate in an FAR. The futures rate is 2. 9%. The foamed rate can be estimated using equation (6. 3) as 0. 029-0. 5* 0. 0142 0. 263 or 2. 63%. Problem 6,25 It is March 10, 2011. The cheapest-to-deliver bond in a December 2011 Treasury bond futures contract is an coupon bond, and delivery is expected to be made on December 31 31, 2011. Coupon payments on the bond are made on March I and September I each year _ The term structure is flat, and the rate of interest with continuous compounding is 5% per annum. The conversion factor for the bond is 1. 2191. The current quoted bond price is $137. Calculate the quoted futures price for the contract. The cash bond price is currently A coupon of a will be received after 1 75 days or 0. 795 years. The present value Of the coupon on the bond is e-C. Ox. 4795=3. SASS. The futures contract lasts 296 days or 0. 8110 years. The cash futures price it were written on the 8% bond would therefore be (137. 1957 3. 9053)e. Sox. 8110 -138. 8061 At delivery there are 121 days of accrued interest. The quoted futures if the contract were written on the 8% bond would therefore be The quoted price should therefore be problem 6. 6. Assume that a bank can borrow or lend money at the same interest rate in the LABOR market, The go-day rate is per annum, and the 180-day rate is 10. 2% re annum, both expressed with continuous compounding The Arteriolar futures price for a contract maturing in 91 days is quoted as 89,S, What arbitrage opportunities are open to the bank? The Arteriolar futures contract price of 83. 5 means that the Arteriolar futures rate is 108% per annum with quarterly compounding and an actual/360 day count This becomes with an actual/actual day count. This is or 1051 % with continuous compounding. The forward rate given by the 90-day rate and the 180-day rate is 10. 4% with continuous compounding. This suggests the following arbitrage opportunity: 1. Buy Arteriolar futures. 2. Borrow 180-day money. 3. Invest the borrowed money for 90 days. Problem 6. 27. A Canadian company wishes to create a Canadian LABOR futures contract from a U. S. Arteriolar futures contract and forward contracts on foreign exchange. Lasing an example, explain how the company should proceed. For the purposes of this problem, assume that a futures contract is the same as a forward contract. The U. S.

Religious Coursework

Religious Coursework Religious Coursework Religious Coursework Usually algorithm of religious coursework writing includes the following: The choice of religious coursework topics: Creation of the coursework outline. Collecting material for college coursework writing. Writing coursework draft. Making the necessary additions and changes. Final editing before turning in the coursework. Religious coursework writing is a self-study of the student, formulated in the form of a scientific work. Religious coursework writing is an essential part of the educational process. The purpose of college religious coursework is: firstly, to give the student an opportunity to conduct an independent scientific study, to deepen the knowledge of general religious course; secondly, to determine the student's ability to conduct scientific research. Coursework topic should be associated with the program studied at religious course. Topic may be assigned by the adviser as well as proposed by the student. Religious coursework contains the following main parts: introduction, theory, the results, discussion of the results, conclusions, and the recommendation. In the introduction you should, firstly, justify the need of the proposed study and, secondly, explain your interest and the value of selected coursework. It should provide answers to the questions: "What is already known about the problem? Who has already done something to solve the problem? What results were obtained prior to your research? With the help of what methods they were obtained? Clearly show what you are going to investigate, highlight "the main sector" of the issue, and clearly define the goal. Keep in mind that your reader might have a different interpretation of the problem and it is your responsibility to deliver the intended message. Show the methods you will use to solve the problem. Highlight strengths and weaknesses of the used methods, the complexity and difficulties of such coursework writing. Coursework Help Coursework writers should pay attention to style they use for writing coursework. The language of the English courseworkmust to be scientific, not conversational. At the same time, heavy and unusual verbal constructions are unlikely to give greater solidity to your writing. It is needless to recall that the college coursework should be written in accordance to assigned format. Once the coursework is written and turned in to the adviser, the work is not over yet because you would have to deliver a speech to protect your coursework. The procedure doesn;t contain anything terrible, you will have to tell few words about your English coursework (in fact - squeezing from introduction and conclusion). Here, the main thing is confidence, the ability to pick up the most important tings, clearly and concisely express your thoughts. .com We offer you an opportunity to benefit from professional religious coursework writing service at our site. We hire exceptionally experienced and educated writers who are confident in their writing abilities. We guarantee originality and timely delivery. Custom essay writing service is your chance to improve grades. Read also: Nursing School Admission Essay Custom Admission Essay College Entrance Essay Outline Application Essay Admission Essay Writing

Space Hazards as a Challenge to Astronauts

Space Hazards as a Challenge to Astronauts Introduction Space hazards refer to the events that take place beyond the surface of the earth and that may affect the health of an individual. The study of space is best understood under the subject of astronomy which explains what space is composed of as well as what can be done and what cannot be done in space. Astronauts are best positioned to operate in space since they have studied the universe and understand the risks and the benefits of the operations in space.Advertising We will write a custom research paper sample on Space Hazards as a Challenge to Astronauts specifically for you for only $16.05 $11/page Learn More There are various hazards that are associated with space which are mainly as a result of the events that are carried out in space. Aircrafts are the most common manmade objects in space as well as other objects that astronauts use in the space operations. Space hazards are mainly as a result of the effects of weather, radiation. Astronom y Astronomy refers to the â€Å"science that investigates the distribution, composition, physical state, movement and evolution of material in the universe beyond the earth’s surface† (Becker 1). The distribution of matter or energy includes its position, arrangement and frequency over a certain area in the universe or in the whole space. The composition of matter includes its chemical composition qualitatively and quantitatively. For instance, the qualitative composition of the sun includes hydrogen and helium while its quantitative composition includes the numerical or actual percentages of the substances that make it up i.e. the volume of the sun is made up of 95% hydrogen and 5% helium while its mass is made up of 78% hydrogen, 20% helium and 2% heavy metals (Becker 1). The physical state of the matter in the universe can either be in the form of â€Å"solid, liquid, gas or plasma† (Becker 1). On the other hand, the movement of material in space involves the ir positional change which mainly involves rotation and revolution. Finally, the evolution of matter in space refers to the theories that have been put across by scholars to explain the origin and the future of matter in the universe. Some of these theories include the steady state, the big bang and the oscillating universe (Becker 1). Space hazards Many space hazards occur in the universe every day and not only affect the objects operating directly in space but also technological processes on the surface of the earth such as communication, power grids and others (NASA 1). The effects of space hazards are so extreme since space is one of the most extreme environments imaginable with experiences of extreme temperature, extremely hot and extremely cold as well as threatening levels of radiation. These are the conditions that aircrafts are subjected to when they are operating above the insulating layer of the earth (Cain 1).Advertising Looking for research paper on astronomy? L et's see if we can help you! Get your first paper with 15% OFF Learn More Launching is one of the extreme situations. The space craft is maintained in the space from the pull of gravity by the rocket which enables it to have enough mass and speed thus avoiding the pull of gravity from the much heavier objects near them (Jessa 3). While launching, this very â€Å"rocket shakes the air craft violently and batters it with extremely loud sound waves† (Cain 3). These phenomena are capable of shattering the delicate parts of the space craft thus causing space hazards (Cain 3). The extreme temperatures in space are again prone to causing space hazards on the objects operating in space like the aircrafts. Weather conditions vary extremely â€Å"temperatures in space go hundreds of degrees below the freezing point and hundreds of degrees up especially when the spacecrafts are near the sun† (Cain 6). Though there is no air in space, energy from the sun is transfe rred through radiation which when absorbed by the spacecrafts, it causes a lot of heating in objects that have such machines as computers that ought to operate under moderate temperatures. Though engineers have put effort to make spacecrafts models in such a manner that they have features that can withhold these conditions, this is not always the case as explained below (Cain 6). As we have seen earlier, energy in space is transferred through radiation either through â€Å"trapped and the transient types† (Cain 8). The trapped radiation is composed of sub atomic particles mainly the protons and the neutrons which are usually trapped by the earth magnetic field thus creating Van Allen radiation fields around the planet (Angelo 124). It has been noted that, â€Å"the transient radiation is mainly composed of protons and cosmic rays which constantly streams in space especially during magnetic storms on the sun† (Cain 8). The transient radiation can be so harmful in that w hen they collide with electronic circuit, they are capable of interfering with the content of memory, they can cause spurious flow of currents around the object or even burn out computer chips (Cain 8). Space hazards can also be caused by meteor showers. These refer to the little dust particles that make shooting stars visible to us while traveling through space. They are capable of sand blasting some useful large rays of the solar panels thus affecting their importance (Cain 15). A NASA-funded study carried out in January 2009 describes the consequences of solar eruptions on communication, power grids and other technology on the surface of the earth, the risks of extreme conditions in space as a result of magnetic activity on the sun and effects of extreme space weather (NASA 1).Advertising We will write a custom research paper sample on Space Hazards as a Challenge to Astronauts specifically for you for only $16.05 $11/page Learn More According to the stu dy, the sun is the most vital star on the surface of the earth but its contribution towards space hazards is adverse. Apart from â€Å"emitting a consistent stream of plasma, it often releases quite a large volume of tons of matter known as the coronal mass ejections† (NASA 5). The study further confirmed that space weather produces solar storm electromagnetic field which induces extreme currents on wire resulting to various adverse effects. Some of the most common effects of this induction on wires include power line disruptions which results to widespread blackouts and also disrupts communication cables that supports the internet. Extreme space weather produces solar energetic particles and causes dislocation of earth’s radiation belts. (NASA 5) These phenomena are capable of damaging satellites used for â€Å"commercial communications, global positioning and weather forecasting† (NASA 5). The modern advancement in technology did not mark the beginning of its problems with space weather since these problems were recorded since the nineteenth century when the telegraph was invented (NASA 5). The professor and director of the laboratory for atmospheric and space physics at the University of Colorado really appreciated NASA efforts for beginning the extremely challenging task of investigating on space hazards in a quantitative way. This is because their impacts are equally as much as those of natural hazards on the earth’s surface and need not be ignored. Space travel health and safety issues For a long time, space travel has been associated with a lot of accidents and hazards thus leaving the activity to just a small number of highly trained and highly motivated individuals. The Apollo, an American space program, recorded three major hazards of space travel â€Å"1 Mission Fire of January 27, 1986, the Challenger accident of January 28, 1986 and the Colombia accident of February 1, 2003† (Angelo 123). These hazards have made space travel to be approached with a lot of consciousness such that it will remain a highly hazardous undertaking in now and in the near future, unless, something is done about it (Angelo 123). There are various health and safety issues concerning space travel some of which include:Advertising Looking for research paper on astronomy? Let's see if we can help you! Get your first paper with 15% OFF Learn More Launch abort, spaceflight and space based assembly and construction accidents, life support system failure, collisions of space vehicles and habitats with space debris and meteoroids, ionized radiation hazards, psychological stress due to strenuous living conditions and many others. (Angelo 124) The three major challenges that people living in space face are â€Å"the substantial acceleration and deceleration forces when leaving and returning to earth, living and working in weightless conditions for long periods of time and chronic exposure to space radiations† (Angelo 124). Astronauts and cosmonauts usually experience up to a maximum of six times acceleration as compared to that of the earth’s surface. These conditions result to some physical difficulties such as space adaptation syndrome, feelings of isolation and stress as well as post flight recovery problems. Microgravity or weightlessness results to bone calcium loss and though most of its other effects recover a few weeks after return to earth, this may take longer especially after a long duration space mission. Space travelers throughout circular and interplanetary are bombarded by galactic cosmic rays, which are very energetic atomic particles that contain protons, helium nuclei and heavy nuclei. These rays expose individuals to excess ionizing radiation doses as compared to the standards set for various space missions and occupations (Angelo 124). Mars expedition personnel and lunar surface base workers’ are prone to experiencing various psychological disorders, some of which include solipsism syndrome and shimanaghasi syndrome. Solipsism syndrome is a state of mind where a person feels like every occurrence is not real but a dream and is usually as a result of small space base or confined expedition vehicle. The shimanaghasi syndrome is a feeling of isolation where an individual feels left out even when life is comfortable; a situation which requires proper communication with th e earth and careful design of living quarters (Angelo 125). Conclusion Livings, traveling through space, working and other space missions have been quite challenging and are yet to be since the ever present dangers and hazards have not yet found a solution. However, there is a group of highly motivated and trained individuals who may continue enjoying the extraterrestrial lifestyle which outweighs any personal risks. Though space hazards have been a challenge to most astronauts, a few things can be put together to curb the challenge. First, most of the psychological and health issues related to the space hazards can be attended to medically. Angelo, Joseph. Encyclopedia of space and astronomy. New York. InfoBase Publishing, 2006. Print. Becker, Gary. Astronomy Survival Website. Astronomy, 1990. Web. Cain, Fraser. â€Å"Some of the Hazards in Space†,  2004. Web. Jessa, Tega. Orbit Universe Today, 2009. Web. NASA. New study reveals hazards of severe space weather. Astronomy, 2009. Web.

Wal_mart Assignment Example | Topics and Well Written Essays - 250 words

Wal_mart - Assignment Example Wal-Mart’s centralized approach and the amount of sales it makes every year gives it the power to act as leader in its channel. The network that Wal-Mart has built up over the years is the rationale for its powerful channeling. The service strategy at Wal-Mart is satisfying its customers and building long-term relationship with them through offering lowest prices for their goods. Wal-Mart is famous for its everyday low prices and has positioned itself as a giant in giving best buys as compared to its competitors. The intensive pricing chopping at Wal-Mart demands a strong and fierce distribution network. The retailer translates its strategy by having a strong network of distributors from all over the world. While importing can be a hassle for an ordinary retailer, it is a fast option for bringing low cost product in the local market for Wal-Mart. In order to keep up with lowest product prices Wal-Mart has been known to be very strict with its suppliers. This retailer is blamed to force its suppliers and influence them into packaging on Wal-Mart’s terms and conditions. The company is also known as looking at the accounts of their suppliers and forces them to cut their profits and charge low prices to Wal-Mart. Thus in order to keep up with its name and image of everyday low prices Wal-Mart’s information search goes from priority packaging to searching through the accounts of their

Grass Growth in the Presence of Salt Lab Report Example | Topics and Well Written Essays - 750 words

Grass Growth in the Presence of Salt - Lab Report Example Investigation of relevant literature reveals that grasses exposed to high levels of salt can suffer root damage, disease, and are less resistant to drought (Swift & Koski, 2007). Furthermore, studies have shown that as the salinity levels increased, root, shoot, stem, height, growth, and visual quality decreased in the grasses (Alvarez, 2006). It has also been noted that certain species of grasses are more resistant to salinity than other types of grass and can even flourish in salty waters (Vasques, 2006). The scientific method will be used to answer the question: Is grass growth inhibited by the presence of salt? Hypothesis: The saline levels present will have a direct effect on the growth rate of the grasses tested in that more salt will decrease the growth rates and less salt will allow the grasses to grow and flourish. Prediction: If the salt levels are increased then the growth of grass will decrease and vice versa. Controlled Experimental Method: To test the hypothesis, a cont rolled experiment will be conducted in the following manner: Two types of grasses are selected and cultivated under normal conditions in small pots for approximately three weeks to establish hearty seedlings. Each type of grass-Eragrostis Love grass and Miscanthus Adagio- are cultivated in four pots each. One pot of each type of grass will be used as a control and will not receive any salt. One pot of each type of grass will be watered in a solution that is 0.25% saline, 0.50% saline, and 0.75% saline. The plants will be grown for a total of 4 weeks (28 days) under test conditions and each plant of the eight plants will be watered every other day with the respective solutions. The soil will be tested weekly to determine the salinity levels of each plant and observations will be made daily to determine the quality of the plant. Measurements of the growth of each plant will be taken on a weekly basis and the data will be compiled and analyzed at the end of the 30 day experiment. The e ntire experiment and all variables will be redundant in case any of the plants experience unexpected complications or there should be the accidental introduction of an unforeseen variable. Results: The salinity levels and growth rates for the grasses are indicated (see Figure 1) as recorded each week. The predicted outcome was achieved and the hypothesis was proven correct. The saline levels had a direct effect on the growth rates of the grasses although the love grass proved to be a heartier species of grass and was less affected by the amounts of salt present. Figure 1- Growth Rates and Salinity Levels for sample Grasses WEEK 0 WEEK 1 WEEK 2 WEEK 3 WEEK 4 Growth Salinity Growth Salinity Growth Salinity Growth Salinity Growth Salinity Control Love grass 8† 0 mmhos/cm 12† 0 mmhos/cm 13† 0 mmhos/cm 19† 0 mmhos/cm 22† 0 mmhos/cm Control Adagio 5† 0 mmhos/cm 8† 0 mmhos/cm 12† 0 mmhos/cm 15† 0 mmhos/cm 18† 0 mmhos/cm Love grass 0.25% 8† 0 mmhos/cm 11† 3 mmhos/cm 13.5† 5 mmhos/cm 17† 8 mmhos/cm 20† 10 mmhos/cm Adagio 0.25% 5† 0 mmhos/cm 8† 3 mmhos/cm 11† 5 mmhos/cm 13† 8 mmhos/cm 15† 10 mmhos/cm Love grass 0.50% 8† 0 mmhos/cm 9† 6 mmhos/cm 10† 10 mmhos/cm 11† 15 mmhos/cm 12† 18 mmhos/cm Adagio 0.50% 5† 0 mmhos/cm 7† 6 mmhos/cm 9† 10 mmhos/cm 11† 15 mmhos/cm 13† 18 mmhos/cm Love grass 0.75% 8† 0 mmhos/cm 8.75† 10 mmhos/cm 9† 16 mmhos/cm 10† 20 mmhos/cm 10.75† 24 mmhos/cm Adagio 0.75% 5† 0 mmhos/cm 6† 10 mmhos/cm 6.75† 16 mmhos/cm 7.5† 20 mmhos/cm 8.75† 24 mmhos/cm Conclusion: The results of this experimented has proven that the hypothesis can definitively be accepted. In addition, the supplementary information

Willy Russell portray serious issues Essay Example for Free

Willy Russell portray serious issues Essay He uses Standard English, but with a regional accent. So he fits into the social context of the play. His vocabulary is direct; this symbolises a direct message. His voice is also assertive but he doesnt show any emotion, which shows hes detached from whats going on. Hes dramatically effective because he is entwined in speech and action. The speech sequences between Linda and Mickey are interrupted by the narrator, which shows a dramatic presence. He comes at unexpected and dramatic times, which is engaging for the audience. The director also says shoes upon the table and gypsies in the wood this symbolises a warning and verbally foreshadows the rest of the play. The issue of superstition is portrayed in an entertaining way because the narrator is saying in between speeches. He is slightly menacing; this creates shock to the audience, which engages them. You could say that the narrator is seen like the devil. Comic devices are also used when there were adults dresses as children and they behave in an immature manner. The milkman being the gynaecologist also adds to the humour, from the quote actually Ive given up the milk round and gone into medicine. Im your gynaecologist. From this the audience would subconsciously see the issues in an entertaining way. The humorous language from quotes previously also build up the entertainment and adds to the comic devices they go together well in tandem. Mickey and Linda growing up has a humorous side to it because they deal with small problems, which are humorous. Mickey says I dont wanna die and Linda says But you have to Mickey. Everyone does. Like your twinny died. Mickey here is frightened that Sammy might kill him with a fake air pistol, but Linda calms Mickey down. But as they grow up we see a serious issue of it, like their baby, finances and trying to find a house. A lot of stress comes to Mickey and he says Now give me the tablets I need them, so I can be invisible from that we can see Mickey needs tablets because of the stress, but the last part makes it entertaining, its a sort of joke. There was also light romance between Mickey and Linda, she kept saying I love you Mickey, which was entertaining as Linda had said she loved him when they were children; the romance makes those serious issues between them seem entertaining. The music devices that Willey Russell used also make it entertaining and helps bring the characters to life on stage, the serious issues such as single parents and social class suddenly become entertaining because of these melodies. Willy Russell used music devices effectively to end Act 1 on a positive note. A quote to show this was, Were getting out. Were moving house, Were going away. Getting out today. Were moving movin movin house. The Johnstone had a lot of troubles up to that point, but they were finally moving to the countryside. The positive text and music contributes to the happy atmosphere, the chorus, Oh bright new day, were moving away, were startin all over again. Oh, bright new day, were going away, Where nobodys heard of our name, emphasises the importance of it and shows her happiness. The melody is an upbeat tune, the lyrics say that Oh bright new day, the constant repetition again emphasises the fact that the atmosphere is happy, so the issue of poverty and single parents are subconsciously portrayed in an entertaining way because of the music, melodies and positive text. The happy atmosphere also subconsciously makes the audience generate their expectations, that the next acts would be happy. Different types of songs are used to represent different parts of the play; there were ballads, Tell me its not true, say its just a story, something on the news, Tell me its not true, say its just a dream, for sad parts and lively songs, (from the previous quotes) for light-hearted aspects. The engaging songs and lyrics add to the drama because it is constantly enveloping with serious issues, which is entertaining, hence engaging for the audience. The themes of dancing, like, Oh we went dancing Edward, it was great and waltzing occurs throughout the play to go in tandem with the lively songs to add to the happy atmosphere again to portray the serious issues in an entertaining way. The end of the play deals with a lot of other serious issues in an entertaining approach. There is a lot of action and Mickey going crazy at the end, which is entertaining, this goes in tandem with the murders to portray it in an entertain way. The tension when Mickey was holding the gun also creates suspense for the audience and really engages them. The audience would subconsciously start the denotation to connotation process, as the gun connotes death and violence. Their expectations for the end of the play would be generated. The main issue of murder in the closing scene would be portrayed entertainingly because it was ironic that two twin brothers that were separated at birth eventually die on the same day. The author makes Mickey say You! Why didnt you give me away! I could have been. I could have been him! This shows that Mickey knows he could have been better off if he was in the higher-class family. Subsequently it shows that the Willy Russell thinks that it is class that caused the murder. The authors attitudes towards class are also revealed and justified in the narrators last speech. He trys to persuade the audience into thinking it was class because he stretches the last sentence Or could it be what we, the English come to know it as class? . He ends with a strong rhetorical question talking about class. This rhetorical question is cleverly used because it subconsciously makes us linger on the topic of class, and even be persuaded to think it was class that caused the murders. This reflects the attitudes of the author; he thinks that it was the different social classes mixing that caused the murders. His attitudes to social classes were high. He was concerned, that if people with a different social classes mix then it would spell trouble. In the play of Blood Brothers Willy Russell deals with a lot of serious issues in an entertaining way, this really engages the audience. He virtually engulfs all the serious issues with the entertainment and happy atmosphere, to portray them as entertaining. Our minds subconsciously think about the entertaining side of the issue rather than the serious side. The issues also add to the development of the play, poverty led to social class which eventually led to murder. However he trys to portray the issues in an entertaining way to engage the audience; it makes us feel and think about different aspects of the issues. Take social class for example, Mickey was brought up in a lower class family but probably had more enjoyment in his childhood than Edward. But Edward was not allowed much because of his parents. However when Mickey grew up he didnt have a good education and wasnt taught properly by his mother what was to do and not to do in life. These are different aspects of that issue, which were cleverly shown in an entertaining way by Willy Russell.