Extended School Day Essay Example for Free

Extended School Day Essay Imagine you are a seven-year-old whoses parents work until five each night. When you come home after school there is no one home with you. What could you get into? You might know right from wrong but you still might get yourself into some trouble. Just out of plain curiosity you might get into something or an accident could happen without you even being involved in it. But I say there is a way to stop this from ever happening. I think we should either keep schools open longer or introduce more after school programs. Many advantages would come from either of these ideas. For one the parents would not have to be in a state of worry about whether their child is safe at home or in trouble. Plus you always have that added guilt about not being able to help your kids with their homework. Now with either longer days or more after school programs a lot of stress could be taken away from your family. No more having to pay for sitters which could stress out a families finances. Also the dangers of the kids being home and getting into trouble would be cut down severely. And also with the longer days or more after school programs parents would be able to get home, at least one parent would be home, to pick their kids off the bus. I wanted to suggest some programs I feel would help out with the problem at hand. These programs would be a reading and math after school program. One program I would suggest is a reading after school program. It is said that today, too many children fail to read at a level we would expect for the grade they are in. In a study done in 1998, the National Assessment of Educational Progress found that, thirty eight percent of our nations fourth graders failed to read at the basic level. That fact alone says we must enforce more after school programs. Now they also found that sixty-four percent of African American and sixty percent of Hispanic American fourth graders read below the basic level. This shows we need to not only put these programs in suburban schools but also city schools. Research has shown that students who are behind in reading can catch up to grade level with additional reading instruction and tutoring after school and in the summer. And that is what I am trying to put in effect. We all know that to succeed in school all students need good reading skills, and thats just a fact. Another program that I think is good is a mathematics after school Program. I has been found that students who take rigorous mathematics courses are much more likely to go on to college and into promising careers than those who do not. And with technology becoming more prevalent in the workplace, the need for employees with mathematics backgrounds has greatly increased. In my research I have found that far too many students finish middle and junior high school without developing a solid foundation in algebra and geometry. Research done by the international comparative assessments said that U. S. student achievement in mathematics falls below the average in the middle grades. We need to help improve this. I think some other important facts help support my case for the longer school day and the after school programs in this little chart. Some reasons why the public supports after school programs: *Over 28 million school-age children have both parents or their only parent in the workforce. *At least 5 million children and possibly as many as 15 million are left alone at home each week. *Many children, especially low-income children, lose ground in reading if they are not engaged in organized learning over the summer. *Experts agree that school-age children who are unsupervised during the hours after school are more likely to receive poor grades and drop out of school than those who are involved in supervised, constructive activities. *Statistics show that most juvenile crime takes place between the hours of 2:00 and 8:00 pm, and that children are also at much greater risk of being the victims of crime during the hours after school. Here is another chart showing that after school programs enhance a childs academic achievement. *Participants in after-school programs:* *Show increased interest and ability in reading *Develop new skills and interests *Show improved school attendance, increased engagement in school, and reduced dropout rate *Turn in more and better quality homework and can spend more time on task. *Are held back or placed in special education classes less frequently *Show higher aspirations for the future, including intention to complete high school and go to college. These facts are real. This is why I picked trying to make a longer day and more after school programs. And with these two programs the numbers will go up. I plan on adding more programs to what I have wrote in here. But I think implementing a longer school day and these after school programs should help not only the parents of these children but the children themselves.

iraq :: essays research papers

IRAQ - VERY INTERESTING - DID YOU KNOW? > >> > > >> > 1 The garden of Eden was in Iraq. > >> > > >> > 2. Mesopotamia, which is now Iraq, was the cradle of civilization! > >> > > >> > 3. Noah built the ark in Iraq. > >> > > >> > 4. The Tower of Babel was in Iraq > >> > > >> > 5. Abraham was from Ur, which is in Southern Iraq! > >> > > >> > 6. Isaac's wife Rebekah is from Nahor, which is in Iraq. > >> > > >> > 7. Jacob met Rachel in Iraq. > >> > > >> > 8. Jonah preached in Nineveh - which! is in Iraq. > >> > > >> > 9. Assyria, which is in Iraq, conquered the ten tribes of Israel. > >> > > >> > 10. Amos cried out in Iraq! > >> > > >> > 11. Babylon, which is in Iraq, destroyed Jerusalem. > >> > > >> > 12. Daniel was in the lion's den in Iraq! > >> > > >> > 13. The three Hebrew children were in the fire in Iraq (Jesus had > >> > been > >> > in > >> > Iraq also as the fourth person in the fiery furnace!) > >> > > >> > 14. Belshazzar, the King of Babylon saw the "writing on the wall" in > >> > Iraq. > >> > > >> > 15. Nebuchadnezzar, King of Babylon, carried the Jews captive into > >> > Iraq. > >> > > >> > 16. Ezekiel preached in Iraq. > >> > > >> > 17. The wise men were from Iraq. > >> > > >> > 18. Peter preached in Iraq. > >> > > >> > 19. The "Empire of Man" described in Revelation is called > >> > Babylon,which > >> > was a city in Iraq! > >> > > >> > And you have probably seen! this one. Israel is the nation most > >> > often > >> > mentioned in the Bible. But do you know which nation is second? It > >> > is > >> > Iraq! However, that is not the name that is used in the Bible. The > >> > names > >> > used in the Bible are Babylon, Land of Shinar, and Mesopotamia. The > >> > word > >> > Mesopotamia means between the two rivers, more exactly between the > >> > Tigris > >> > and Euphrates Rivers. The name Iraq, means country with deep roots. > >> > > >> > Indeed Iraq is a country with deep roots and is a very significant

Miss Julie Essay

August Strindberg was known as a father of naturalism. Throughout Miss Julie Strindberg uses animal imagery to explain the behavior throughout the play. In the play, Miss Julie is obsessed with the animals. The animals are used to symbolize her behavior. Jean the manor’s thirty year old valet describes Miss Julie as wild and crazy. At this point he is talking to Kristen, his fiance and the manor’s cook. In the play dog imagery is used a lot . For example when Jean was explaining to Kristin how Miss Julie acted towards her fiance right before the engagement ended. They were down at the stables one evening, and Miss Julie was training him–that’s what she called it. Do you know how? She made him leap over her riding crop, the way you teach a dog to jump. Twice he jumped, and got a cut each time; but the third time, he snatched the whip out of her hand, broke it into a thousand pieces and went off (Strindberg 72). According to Jean Miss Julie teaching her ex fiance to jump over her riding crop like a dog showed that Miss Julie’s had a dominant side. She was trying to make him into her slave she treated him like a dog. A dog is suppose to be a man’s best friend because dogs are suppose to be extremely loyal pets to their owners. Miss Julie saw it as her being the owner taking all the control and her ex fiance being the dog listening to every word she said. She kept treating him like a dog trying to train him until he got sick of it and broke her riding crop right before the engagement ended. Diana, Miss Julie’s dog is used to symbolize Miss Julie when referring to the social class status. It was said that Diana looked just like her Mistress. Miss Julie’s dog in the play got impregnated by the gatekeeper’s dog, a mongrel. Just like her mistress who’s trying to seduce her servant not caring about the different class he falls into. Miss Julie became very coquettish after her engagement ended and she started acting more wild and crazy than usual. I went with the Count to the station and on my way back passed the barn I just stopped by for a dance. And who do I see but her ladyship with the gamekeeper, leading the dance? But as soon as she claps eyes on me, she comes rushing straight on over and invites me to join her in the ladies waltz. And how she waltzed ! —I’ve never known the like. She’s crazy! (Strindberg 71). She would go out dancing more often in order not to face her father the Count. She considered Jean a very good dancer and would often ask him to dance as well. Miss Julie wanted someone who could lead and that would not make her look ridiculous on the dance floor. At that point all Jean said to Miss Julie was â€Å" As your Ladyship commands, I am at your service† (Strindberg 74). Miss Julie then replies â€Å" Don’t take it as a command. This evening we are all just enjoying ourselves together, and any rank is laid aside. So give me your arm (Strindberg 75). Miss Julie then goes off to dance with Jean leaving Kristin alone. Jean returns back alone to Kristin telling her how crazy Miss Julie is and what a way she has of dancing while people laughed at her behind closed doors. To benefit herself Miss Julie told Jean that class ranks did not matter at the moment. She wanted to have a good time with someone who knew how to dance and that could lead her in the dance as well. The sexual affair between the dogs represent the sexual affair between Miss Julie and Jean and how they both look down on each other. Miss Julie looks down on Jean for just being another one of her servants and Jean looks down on Miss Julie for seeming so easy, for the way she flirted with him and for acting so crazy and wild. Miss Julie starts to confess the love she has for him while he sat there and spoke all the pretty stories she wanted to hear before he switched the role and starting saying some awful things to her. He found Miss Julie giving herself up to him quickly that he took it to his advantage to use her for her money until she told him she did not have any money for the plans he had made.

Scribing for Children With Writing Problems

Scribing is an accommodation  for children who have difficulty with writing. When scribing is included in a students specially designed instruction,  the teacher or a teachers aide will write the students responses to a test or other evaluation as the student dictates. Students who are able to participate in all other ways in the general education curriculum may need support when it comes to providing evidence that they have learned the content of a subject area, such as science or social studies. These students may have fine motor or other deficits that may make it difficult to write, even though they can learn and understand the material. Importance Scribing may be especially important when it comes to doing your states high stakes annual evaluation. If a child is required to write an explanation of the process for solving a math problem or the answer to a social studies or science question, scribing is permitted, since you are not measuring a childs ability to write but her understanding of the underlying content or process.  Scribing is not, however, permitted for English language arts assessments, since writing is specifically the skill that is being assessed.   Scribing, like many other accommodations, is included in the IEP.  Accommodations are permitted for both  IEP  and  504  students since the support of an aide or teacher on content area testing do not detract from a students ability to provide evidence of proficiency in a subject that is not specifically reading or writing. Scribing as an Accommodation As noted, scribing is an accommodation, as opposed to a modification of curriculum. With a modification, a student with a diagnosed disability is given a different curriculum than his same-age peers. For example, if students in a class have an assignment to write a two-page paper on a given subject, a student given a modification might only write two sentences. With an accommodation, the student with a disability does exactly the same work as her peers, but the conditions of completing that work are changed. An accommodation may involve extra time given for taking a test or allowing the student to take an exam in a different setting, such as a quiet, unoccupied room. When using scribing as an accommodation, the student speaks his answers verbally and an assistant or teacher writes those responses, without giving any extra prompting or help. Some examples of scribing might be: When Angela took the state educational test, the teachers aide scribed her responses to the written math sections.While the students in a science class wrote a three-paragraph essay about the  first dinosaurs, Joe dictated his essay as the teacher scribed his responses.While students in the sixth-grade class solved  math word problems  on rate, time, and distance, and listed their answers in the blank spaces on a worksheet, Tim dictated his answers to the teachers aide, who then wrote Tims solutions on the worksheet. While it may seem like scribing provides an extra—and perhaps unfair—advantage for special needs students, this particular strategy can mean the difference between enabling the student to participate in general education and segregating the student into a separate classroom, depriving him of opportunities to socialize and participate in mainstream education.

The War Of The Cold War - 1052 Words

The Cold War was a result of what happened at the end of World War 2. At the end of World War 2, the Soviets held a grudge against the U.S for their delayed entrance in the World War resulting in deaths of thousands of Russians resulting in the appearance of the Cold War .The Cuban Missile Crisis was a significant flashpoint in the Cold War because it was the moment two superpowers came closest to nuclear conflict. This crisis, while posing the very real threat of global annihilation, also led to the signing of the ‘Nuclear Test Ban Treaty’ prompting the soviets and the U.S to reduce their nuclear missile stockpiles. It was significant because It could have been the trigger point for a nuclear war, led to reduction of nuclear stockpile by Soviets and U.S and also to the relaxation of the tensions between the Soviets and the U.S. The Cuban Missile Crisis was a direct and dangerous confrontation between the U.S and the USSR during the Cold War. This was when two superpowers came closest to nuclear conflict. This crisis was unique in a number of ways, featuring calculations and miscalculations as well as direct and secret communications and miscommunications. This crisis was characterise by the fact it was primarily played out at the White House and the Kremin Level, this is also known as a proxy war (The Cuban Missile Crisis, October 1962 - 1961–1968 - Milestones - Office of the Historian, 2016). Leaders of the U.S and the Soviet Union engaged in a tense, 13 day politicalShow MoreRelatedThe War Of The Cold War1644 Words   |  7 PagesThe Cold War was a state of political and military tension stemming from World War II fought primarily between the United States and the Soviet Union. Although the start and end dates of the Cold War are frequently disputed over, it is generally accepted that the confli ct started at the conclusion of the Second World War and stemmed from the social climate and lingering tensions in Europe and the increasing power struggles between the Soviet Union and the United States. Along with economic separationRead MoreThe War Of The Cold War Essay1525 Words   |  7 PagesOne major war ended and another to begin. The Cold war lasted about 45 years. There were no direct military campaigns between the United States and Soviet Union. However, billions of dollars and millions of lives were lost. The United States emerged as the greatest power from World War 2. (Give Me Liberty 896) The country boasted about having the most powerful navy and air force. The United states accounted for about half of the world’s manufacturing capacity, which it alone created the atomic bombRead MoreThe War Of The Cold War886 Words   |  4 Pagesin an infamous battle against ideologies: The Cold War. Even though war took place during this time, both powers were not involve d in battle directly, hence the name cold war. The war mainly consisted of assumed and implied threats of nuclear attacks and political control over states in Europe. Even before 1945, the beginning of the Cold War, tension brewed between the U.S and the U.S.S.R. Both sides had differing views on Europe s state after the war. For instance, programs like the Marshall PlanRead MoreThe War Of The Cold War757 Words   |  4 PagesAs tensions continued to augment profoundly throughout the latter half of the Cold War period, they brought forth a movement from a previous bipolar conflicting course, to one of a more multipolar nature. These tensions were now not only restricted to the Soviet Union and United states, but amongst multiple other nations of the globe. It became a general consensus that a notion of ‘peace’ was sought globally, hence, the emergence of dà ©tente. The nature of this idea in the short term conveyed itselfRead MoreThe War Of The Cold War961 Words    |  4 Pages1945, beginning year of the Cold War. The development of cold war just started after the end of world War ||. The cold war was the result of conflict between two powerful country Soviet Union and United State. The war was regarding to the lead the world after the World War ||. The Soviet Union wanted to emerge its power to the world and so do the United States too. The research paper mainly focused on various reasons of opposition of two great power of the world Soviets and United States of AmericaRead MoreThe War Of The Cold War1737 Words   |  7 Pages Cold War The Cold War, which is often dated from 1945 to 1989, was a constant state of political and military tension between powers in the West, dominated by the United States with NATO among its allies, and powers in the East, dominated by the Soviet Union along with the Warsaw Pact. The development of Nuclear Weapons and long range shooting missiles by the United States gave a lot of fear and caused mass destruction. The Cold War came about after World War II when America used their atomic bombsRead MoreThe War Of The Cold War1123 Words   |  5 PagesThe Cold War consist of tensions between the Soviets and the U.S. vying for dominance, and expansion throughout the world. Their complete different ideologies and vision of the postwar prevented them from working together. Stalin wants to punish Germany and make them pay outrageous sum of money for reparation. However, Truman has a different plan than Stalin. Truman believes that industrialization and democracy in Germany and throughout th e world would ensure postwar stability. Stalin also wantedRead MoreThe War Of The Cold War942 Words   |  4 PagesFeelings Do Matter At the close of World War Two in 1945, the United States entered another kind of war, the Cold War, which did not involve two adversaries in open battle fields using bullets against the Soviet Union. Throughout the Cold War, incidents fueled feelings of anxiety, mistrust and pride. Often pride is defined as â€Å"a feeling that you are more important or better than other people† (Pride). Mistrust on the other hand is the â€Å"feeling that someone is not honest and cannot be trusted†,Read MoreThe War Of The Cold War1636 Words   |  7 PagesThe U.S. learned greatly after having been declared the victor of the Cold War. Retired four-star U.S. Army general Colin Powell said, â€Å"The long bitter years of the Cold War are over. America and her allies have won; totally, decisively, and overwhelmingly† (Reed 343). The Cold War started after World War II in 1947 and ended in 1991. The U.S. underwent a political war with the Soviet Union in hopes of advancing more rapidly in certain fields, such as nuclear weapons and space crafts. Avoiding nuclearRead MoreThe War Of The Cold War1244 Words   |  5 PagesBoos echoed throughout the streets of Harlem, New York in great waves of disapproval. Hippies holding up signs supporting peace, and posters opposing the Vietnam War, otherwise known as the Cold War, greeted the tired and injured soldiers. The familiarity of their hometown created a sense of peace and warmth, despite the angry cries of protest from the enraged nonconformists. As loved ones embraced their fighters, chants of outrage broke out from the hippies, and the soldiers, relieved to be home

Network Security Advanced Trust Authorization Access...

Network Security Advanced Trust Authorization Access Control Method Abstract To move around the network securely and safely for organizations is very important. With the increase of this activity new security challenges came in existence. There are many malicious requesters who try to use organization’s web services by sending fake requests. So there is need to identify which request is sent by genuine requester and malicious requester. To avoid requests from fake requesters there is requirement of access control model that can store data about the person who made request for web service at the time of access request and utilize this data effectively in future while making access control decisions. This†¦show more content†¦Definition of Model An Access control model is the technique by which we can restrict the unknown user from accessing some web services. This model works on specified set of rules. To evade the malicious user request, System has to cross the border of security to make some identification about requester. After making identification, Access control model can grant access or restrict the unauthorized user from accessing web services. Some of the Previous Access control models are as following: Role Based Access Control (RBAC) is a standout amongst the most generally utilized Web Service access control methods. In this type of access control technique, roles are allocated to the specific users to access the web services(Nguyen, Zhao Yang 2010). Attribute Based Access Control (ABAC) models make utilization of characteristics claimed by the customers, the suppliers, and some different credits identified with the network. Decisions about access or deny are simply based on these attributes (Yuan Tong 2005). Trust-Based Access Control (TBAC) frameworks are not the same as the past access control plans following the customer trust level is rapidly figured in view of some factual investigation of practices, activities and past access history. Subsequently, bad behaviour and violation of rules specified by service provider lead to a diminishing of the trust level, while great conduct prompts an

Michelle Dellatorre Financial Case Essay Example For Students

Michelle Dellatorre Financial Case Essay Examination One Assume that you recently graduated with a degree in finance and have just reported to work as an investment advisor at the brokerage firm of Balik and Kiefer Inc. One of the firm’s clients is Michelle Dellatorre, a professional tennis player who has just come to the United States from Chile. Dellatorre is a highly ranked tennis player who would like to start a company to produce and market apparel that she designs. She also expects to invest substantial amounts of money through Balik and Kiefer. Dellatorre is also very bright, and, therefore, she would like to understand, in general terms, what will happen to her money. Your boss has developed the following set of questions which you must ask and answer to explain the U. S financial system to dellatorre. A- Why is corporate finance important to all managers? Corporate strategies and individual projects that add value to their firm; and forecast the funding requirement of of their company, and devise strategies for acquiring those funds. B. (1)- What are the alternative forms of business organization? The three main forms of business organization are (1) sole proprietorships, (2) partner-ships, and (3) corporations. In addition, several hybrid forms are gaining popularity. These hybrid forms are the limited partnership, the limited liability partnership, the professional corporation, and the s corporation. B. (2) What are their advantages and disadvantages? The proprietorship has three important advantages: (1) it is easily and inexpensively formed, (2) it is subject to few government regulations, and (3) the business pays no corporate income taxes. The proprietorship also has three important limitations: (1) it is difficult for a proprietorship to btain large sums of capital; (2) the proprietor has unlimited personal liability for the business’s debts, and (3) the life of a business organized as a proprietorship is limited to the life of the individual who created it. The major advantage of a partnership is its low cost and ease of formation. The disadvantages are similar to those associated with proprietorships: (1) unlimited liability, (2) limited life of the organization, (3) difficul ty of transferring ownership, and (4) difficulty of raising large amounts of capital. The tax treatment of a partnership is similar to that for proprietorships, which is often an advantage. The corporate form of business has three major advantages: (1) unlimited life, (2) easy transferability of ownership interest, and (3) limited liability. While the corporate form offers significant advantages over proprietorships and partnerships, it does have two primary disadvantages: (1) corporate earnings may be subject to double taxation and (2) setting up a corporation and filing the many required state and federal reports is more complex and time-consuming than for a proprietorship or a partnership. In a limited partnership, the limited partners are liable only for the amount of their investment in the partnership; however, the limited partners typically have no control. The limited liability partnership form of organization combines the limited liability advantage of a corporation with the tax advantages of a partnership. Professional corporations provide most of the benefits of incorporation but do not relieve the participants of professional liability. S corporations are similar in many ways to limited liability partnerships, but LLPS frequently offer more flexibility and benefits to their owners. C. What should be the primary objective of managers? The corporation’s primary goal is stockholder wealth maximization, which translates to maximizing the price of the firm’s common stock. C. (1) Do firms have any responsibilities to society at large? Firms have an ethical responsibility to provide a safe working environment, to avoid polluting the air or water, and to produce safe products. However, the most significant cost-increasing actions will have to be put on a mandatory rather than a voluntary basis to ensure that the burden falls uniformly on all businesses. C. (2) Is stock price maximization good or bad for society? The same actions that maximize stock prices also benefit society. Stock price maximization requires efficient, low-cost operations that produce high-quality goods and services at the lowest possible cost. Stock price maximization requires the development of products and services that consumers want and need, so the profit motive leads to new technology, to new products, and to new jobs. Also, stock price maximization necessitates efficient and courteous service, adequate stocks of merchandise, and well-located business establishmentsfactors that are all necessary to make sales, which are necessary for profits. C. (3) Should firms behave ethically? Yes. Results of a recent study indicate that the executives of most major firms in the United States believe that firms do try to maintain high ethical standards in all of their business dealings. Furthermore, most executives believe that there is a positive correlation between ethics and long-run profitability. Conflicts often arise between profits and ethics. Companies must deal with these conflicts on a regular basis, and a failure to handle the situation properly can lead to huge product liability suits and even to bankruptcy. There is no room for unethical behavior in the business world. D. What factors affect stock prices? The price of a firms stock depend on the size of the firms cash flow , the timing of those cash flows, and their risk. The size and risk of the cash flow are affected by the financial environment as well as investment, financing, and dividend policy decisions. E. What factors determine cash flows? Three factors determine cash flows: (1) current level and growth rates of sales; (2) operating expenses; and (3) capital expenses. F. What factors affect the level and risk of cash flows? The factors are (1) Investment opportunities, (2) risk, (3) how much will inflation reduce the future purchasing power of of our money, (4) The rate-of-return for risk-free investments, (5) a risk premium that reflects the amount of risk in the project. G. What are financial assets? Describe some financial instruments.? Financial assets are pieces of paper with contractual obligations. Some short-term (i. e. , they mature in less than a year) are instruments with low default risk are U. S. treasury bills, banker’s acceptances, commercial paper, negotiable CDs, and eurodollar deposits. Commercial loans (which have maturities up to seven years) have rates that are usually tied to the prime rate (i. e. , the rate that U. S. banks charge to their best customers) or LIBOR (the London Interbank Offered Rate, which is the rate that banks in the U. K. charge one another. U. S. treasury notes and bonds have maturities from two to thirty years; they are free of default risk. Mortgages have maturities up to thirty years. Municipal bonds have maturities of up to thirty years; their interest is exempt from most taxes. Corporate bonds have maturities up to forty years. Mary Shelley's Worldview EssayExplain how the premiums would vary over time and among the different securities listed above? The inflation premium (IP) is a premium added to the real risk-free rate of interest to compensate for expected inflation. The default risk premium (DRP) is a premium based on the probability that the issuer will default on the loan, and it is measured by the difference between the interest rate on a U. S. treasury bond and a corporate bond of equal maturity and marketability. A liquid asset is one that can be sold at a predictable price on short notice; a liquidity premium is added to the rate of interest on securities that are not liquid. The maturity risk premium (MRP) is a premium which reflects interest rate risk; longer-term securities have more interest rate risk (the risk of capital loss due to rising interest rates) than do shorter-term securities, and the MRP is added to reflect this risk. 1. Short-term treasury securities include only an inflation premium. 2. Long-term treasury securities contain an inflation premium plus a maturity risk premium. Note that the inflation premium added to long-term securities will differ from that for short-term securities unless the rate of inflation is expected to remain constant. . The rate on short-term corporate securities is equal to the real risk-free rate plus premiums for inflation, default risk, and liquidity. The size of the default and liquidity premiums will vary depending on the financial strength of the issuing corporation and its degree of liquidity, with larger corporations generally having greater liquidity because of more active trading. 4. The rate for long- term corporate securities also includes a premium for maturity risk. Thus, long-term corporate securities generally carry the highest yields of these four types of securities. O. What is the term structure of interest rates? What is a yield curve? The term structure of interest rates is the relationship between interest rates, or yields, and maturities of securities. When this relationship is graphed, the resulting curve is called a yield curve. P. Suppose most investors expect the inflation rate to be 5 percent next year, 6 percent the following year, and 8 percent thereafter. The real risk-free rate is 3 percent. The maturity risk premium is zero for securities that mature in 1 year or less, 0. 1 percent for 2-year securities, and then the MRP increases by 0. percent per year thereafter for 20 years, after which it is stable. What is the interest rate on 1-year, 10-year, and 20-year Treasury securities? Draw a yield curve with these data. What factors can explain why this constructed yield curve is upward sloping? Step 1:find the average expected inflation rate over years 1 to 20: Yr 1: IP = 5. 0%. Yr 10: IP = (5 + 6 + 8 + 8 + 8 + + 8)/10 = 7. 5%. Yr 20: I P = (5 + 6 + 8 + 8 + + 8)/20 = 7. 75%. Step 2:find the maturity premium in each year: Yr 1: MRP = 0. 0%. Yr 10: MRP = 0. 1 ( 9 = 0. 9%. Yr 20: MRP = 0. 1 ( 19 = 1. 9%. Step 3:sum the IPS and MRPS, and add r* = 3%: Yr 1: rRF = 3% + 5. 0% + 0. 0% = 8. 0%. Yr 10: rRF = 3% + 7. 5% + 0. 9% = 11. 4%. Yr 20: rRF = 3% + 7. 75% + 1. 9% = 12. 65%. The shape of the yield curve depends primarily on two factors: (1) expectations about future inflation and (2) the relative riskiness of securities with different maturities. The constructed yield curve is upward sloping. This is due to increasing expected inflation and an increasing maturity risk premium. Q. At any given time, how would the yield curve facing an AAA-rated company compare with the yield curve for U. S. Treasury securities? At any given time, how would the yield curve facing a BB-rated company compare with the yield curve for U. S. Treasury securities? Draw a graph to illustrate your answer? The yield curve normally slopes upward, indicating that short-term interest rates are lower than long-term interest rates. Yield curves can be drawn for government securities or for the securities of any corporation, but corporate yield curves will always lie above government yield curves, and the riskier the corporation, the higher its yield curve. The spread between a corporate yield curve and the treasury curve widens as the corporate bond rating decreases. S. Suppose that you observe the following term structure for Treasury securities: Maturity Yield 1 year 6. 0% 2 years 6. 2 3 years 6. 4 4 years 6. 5 5 years 6. 5 Assume that the pure expectations theory of the term structure is correct. (This implies that you can use the yield curve given above to â€Å"back out† the market’s expectations about future interest rates. ) What does the market expect will be the interest rate on 1-year securities one year from now? What does the market expect will be the interest rate on 3-year securities two years from now? R. What is the pure expectations theory? What does the pure expectations theory imply about the term structure of interest rates? T. Finally, DellaTorre is also interested in investing in countries other than the United States. Describe the various types of risks that arise when investing overseas? Dellatorre should consider country risk, which refers to the risk that arises from investing or doing business in a particular country. This risk depends on the country’s economic, political, and social environment. Country risk also includes the risk that property will be expropriated without adequate compensation, as well as new host country stipulations about local production, sourcing or hiring practices, and damage or destruction of facilities due to internal strife. Second, Dellatorre should consider exchange rate risk. Dellatorre needs to keep in mind when investing overseas that more often than not the security will be denominated in a currency other than the dollar, which means that the value of the investment will depend on what happens to exchange rates. Two factors can lead to exchange rate fluctuations. Changes in relative inflation will lead to changes in exchange rates. Also, an increase in country risk will also cause the country’s currency to fall. Consequently, inflation risk, country risk, and exchange rate risk are all interrelated. . Hypothetical Treasury and Corporate Yield Curves 0 5 10 15 0 1 5 10 15 20 Years to maturity Interest Rate (%) 5. 2% 5. 9% 6. 0% Treasury yield curve BB-Rated AAA-Rated