$1.$ Classify the following assets as either Real Assets or Financial Assets:

Residential House: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_($Real$/$Financial$)$

Corporate Bond: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_($Real$/$Financial$)$

Lease Agreement: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_($Real$/$Financial$)$

Professional Certification: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_($Real$/$Financial$)$

Trademarks: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_($Real$/$Financial$)$

$$20$ Gold Coin: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_($Real$/$Financial$)$

$2.$ A company aims to allocate its surplus funds for short$-$term needs later in the year. Evaluate the following statements regarding the chosen investment and determine if the statements are True or False.

It possesses high liquidity: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

It entails high risk: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

The yield is substantial: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

The maturity period is brief: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$3.$Your company plans to invest $$2\mathrm{.}5$ million in a $6-$month Treasury Bill. The quoted yield is $1\mathrm{.}75\%.$Calculate the amount to be paid per Treasury Bill:

Identify the appropriate term for the following scenarios:

A deposit in a Canadian bank denominated in US Dollars: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

A Euro$-$denominated bond issued by a Japanese bank: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

A Brazilian Real$-$denominated bond issued by a Spanish bank: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

A Swiss Franc$-$denominated certificate of deposit in a French bank: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$4.$ You are considering an investment in either a Corporate Bond or a Municipal Bond. The Corporate Bond offers a yield of $4\mathrm{.}8\%,$ while the Municipal Bond offers a yield of $3\mathrm{.}2\%.$ Your marginal tax rate is $28\%.$

a$)$Which bond is the more favorable option?

b$)$What marginal tax rate would make you indifferent between the two bonds?

$6.$ You invest $$25,000$ in Stock B at a price of $$50$ per share, contributing $$15,000$ and borrowing $$10,000$ through a broker's call loan. If the price of Stock B drops to $$40$ per share, and the maintenance margin is $45\%$:

a$.$Calculate your initial margin:

b$.$Determine your new margin:

c$.$How much must you deposit to restore your initial margin?