ENVS220 Study Guide - Midterm Guide: Street Light, Ecosystem Services, Marginal Cost

It's due tommorow and need help with these following problems.

Please solve the following problems. Show all relevant time lines and calculations and make sure to highlight the final answer to the question. Where MS Excel is required, please either cut and paste the spreadsheet where it belongs or staple the printout directly from MS Excel. For spreadsheets that are too long to print, just include a sample printout of the first and last pages. Note that some questions require a written answer, not just a number.

Vanilla Ice Co. bonds pay an annual coupon rate of 10% and have 5 years to maturity. If investors' required rate of return is now 8% on these bonds…

Will the bonds be selling at a premium or a discount with respect to their $1000 face value? Why?

b. What is the price of the bonds?

Austin Power Co. bonds have a 14% annual coupon rate. Interest is paid semi-annually. The bonds have a par value of $1,000 and will mature 10 years from now. If the (annual) required rate of return is 12%, what is the price of the Austin Power bonds? [Hint: you need to convert your coupon rate, your number of periods, n, and your req. rate of ret. to a semi-annual basis.]

Consider a $1,000 par value bond with a 9 percent annual coupon that is currently selling for $943. The bond pays interest annually. There are 15 years remaining until maturity.

What is the size of the annual coupon payments?

What is the current yield on the bond?

A preferred share of Phillips, Co. is currently selling for $65.00 on the New York Stock Exchange. If this instrument pays a dividend of $5 a year, what is its yield?

Assume that you plan to buy a share of IBM stock today and to hold it for 2 years. Your expectations are that you’ll receive a dividend of 19.00 at the end of Year 1 and a dividend of $19.25 at the end of Year 2. In addition, you expect to sell the stock for $150 at the end of Year 2. If your expected rate of return is 11 percent, how much should you be willing to pay for this stock today?

A share of common stock has just paid a dividend of $2.00. If the expected long-run growth rate for this stock is 15 percent, and if investors require a 19 percent rate of return, what is the price of the stock?

What would be the interest earned on a $6,000 deposit during the second year of its life if no money is withdrawn from the bank during that time, and the deposit pays an annual interest rate of 2.5 percent, with annual compounding?

Using excel, build a monthly amortization table for a 30-year mortgage on a $350,000 home, no money down. Use 7% as the yearly interest on the loan.

Using the amortization table you built for Question 8, answer the following questions.

How much money will you still owe on the loan after making one full year of payments?

How much money will you still owe on the loan after making 10 full years of payments?

If you want to refinance after 15 years of making payments, how much financing would you need to secure from your bank to do so?

How much money can you expect to pay in interests alone during the 30 year life of the mortgage?

You plan to purchase a $100,000 house using a 30-year mortgage obtained from local credit union. The mortgage rate offered to you is 8.25%. You will make a down payment of 20% of the purchase price.

Calculate your monthly payments on this mortgage.

Calculate the amount of interest and, separately, principal paid in the 25^th payment.

Calculate the amount of interest and, separately, principal paid in the 225^th payment.

Calculate the amount of interest paid over the life of this mortgage.

You plan to purchase a house for $115,000 using a 30-year mortgage from your local bank. You will make a down payment of 20% of the purchase price.

Your bank offers you the following two options for payment:

Option 1: Mortgage rate of 9% and zero discount points.

Option 2: Mortgage rate of 8.85% and two discount points.

Which option would you choose?

Your bank offers you the following two options for payment:

Option 1: Mortgage rate of 10.25% and 1 discount point.

Option 2: Mortgage rate of 10% and 2.5 discount points.

Which option would you choose? [Hint: consider only the incremental costs and benefits of Option 2 with respect to Option 1]

You just got a promotion and you are now taking home $75,000 a year before taxes. You are thinking about upgrading your home and moving to a nicer neighborhood. You’ve been living for the past six years in a 1,300 square foot, 3 bed/2 bath home, currently valued at $137,000. Thanks to the strong capital appreciation of the past few years, you estimate that after liquidating the mortgage and covering realtor fees, you’ll be able to walk away with $40,000, which you intend to use as down payment on your new home. Your debt payments ratio is only 7% and your credit rating is 700, so qualifying for a loan won’t be a problem. The best bank rate you’ve found is 5.9% fixed for a 30 year mortgage.

Ignoring mortgage insurance premiums, homeowner’s insurance premiums, and property tax obligations, how much of a home could you afford?

Would your mortgage be considered conforming or non-conforming?

Do you think you’ll be required to obtain private mortgage insurance? Why?

Answer question part a-d

Question part A

Diffusion Lab

Purpose: To investigate the diffusion of a substance across a semipermeable membrane.

Materials:

iodine (must be colored, clear won't work)

cornstarch/water solution

plastic sandwich bags (cheap is good)

beakers or clear plastic cups

Set-Up and Procedure
1. Fill beaker about halfway and put about ten drops of iodine.
2. Put about a teaspoon of starch and about 3 ounces of water in baggie and tie.
3. Make sure that it is water tight
4. Put the baggie in the beaker or glass and wait.
5. In about 15 minutes the solution in the baggie will turn blue/black. (purple)
This is a result of the iodine diffusing through the bag.
You should know that iodine is an indicator for starch. It turns blue/black in color.
Test it by dropping some iodine on a piece of white paper.

Questions and Conclusions :

Define permeability

To which substance is the plastic bag is permeable ?

Why did the iodine enter the bag ?

Why didn't the starch enter the beaker?

How is the plastic bag like the cell membrane?

Question part b

Reflex Lab

Procedures for Reflex Lab

In this lab we will test muscle stretch reflexes and cutaneous reflexes.

A partner is needed to be the subject for this lab.

Purpose: To test and observe normal muscle stretch and cutaneous reflexes.

Equipment: Reflex hammer,

Background: In the most narrow sense, a reflex is an involuntary, unpremeditated response by the body to an external stimulus. Reflexes allow reaction to a stimulus more quickly than would be possible if conscious thought were involved. A reflex can be described as a stimulus-response cycle. Most reflexes involve the brainstem or the spinal cord and do not require interaction from higher brain centers. The muscle stretch reflexes are the simplest reflexes. They involve the sensory neuron synapsing directly upon the motor neuron. They are sometimes called monosynaptic reflexes. They are also called spinal reflexes because the reflexive action does not require input from the brain. The other reflexes we will be testing in this lab are the cutaneous reflexes. They are also called superficial reflexes because the receptors are in the superficial areas of the body. They are more complex and require the message to go up the spinal cord to the brain and then back down to elicit the response. These can be used to test for CNS injury.

There are five components to a reflex; these components together are called the reflex arc. The components are as follows:

sensory receptor – receives the stimulus and generates an impulse (is usually a nerve ending)

afferent pathway – a neuron that carries the impulse from the receptor to a central integrating center

integrating center –this is where the afferent component connects to the efferent component- this is in the CNS. One or more synapses must occur here. Interneurons are not involved in stretch reflexes but are always found in all other types of reflexes.

efferent pathway - a neuron that carries the impulse from the integrating center to an effector.

effector -receives the impulse and responds. The effector may by skeletal muscle, smooth muscle, or glands.

For more information please read chapter 12 : "Muscle" ( Pages 380-390) in Human Physiology book ( 12th edition by Stuart Ira Fox)

Part I. Stretch reflexes.

First do muscle stretch reflexes which are also called deep tendon reflexes.

It is important the subject relax the muscle being tested. Tell the subject to let the muscle go limp.

Rate each response according to the following scale:

+4 very brisk, hyperactive, large movement at joint.

+3 brisker than average, medium movement at joint

+2 average, small movement at joint

+1 somewhat diminished, very small or no movement at joint

0 no response

A. Patellar (also called the knee jerk reflex) – activation of femoral nerve. The receptor is located in the quadriceps muscle, the effector is the quadriceps muscle. The nerve ending is responding to the stretch of the muscle caused by striking the tendon.

1. A subject is allowed to sit comfortably on a table with knees dangling over the edge.

2. Using a reflex hammer (or substitute as described above) strike the patellar tendon just below the kneecap.

3. Observe the action caused by the reflex.

4. Record your results using the graded scale above.

B. Biceps Reflex – activation of the musculocutaneous nerve

1. Rest subject’s left forearm along your left forearm.

2. Subject’s hand should rest in or near the bend of your elbow.

3. Press your left thumb on the subject’s biceps tendon, apply a little pressure.

4. Strike your thumb with the reflex hammer, this will transfer the pressure to the biceps tendon.

5. Watch carefully for twitching of the biceps muscle. Usually, the forearm will not move.

6. Record your results using the graded scale above.

C. Triceps reflex – activation of the radial nerve.

This is a difficult reflex to observe, but give it a try.

1. The subject should have the arm relaxed and elbow bent.

2. Support the entire weight of the arm with your left hand.

3. Strike the triceps tendons, just above the elbow.

4. Watch carefully for twitching of the biceps muscle.

5. Record your results using the graded scale above.

Both B and C show up best on someone who doesn’t have a lot of subcutaneous fat and who has good muscle definition.

D. Achilles reflex (also called ankle-jerk reflex) – activation of the poplitealnerve. The principle is similar to the knee-jerk reflex. Here the stretch receptors are located in the gastrocnemius muscle.

1. Have the subject take her/his shoes and socks off, exposing the Achilles tendon on the back of the ankle.

2. Strike the Achilles with the reflex hammer (or substitute) and observe the extension of the foot downward.

3. Record the results using the graded scale above.

Part II. Cutaneous reflexes

A. Plantar reflex

This reflex differs from the four muscle stretch reflexes. In this reflex, receptors are stimulated in the sole of the foot (cutaneous receptors). The reflex pathway travels up the leg to the integrating center. While in the integrating center, the reflex travels up the spinal cord through the pyramidal tracts, which are nerve pathways between the spinal cord and brain.

1. The subject needs to lie on his or her back, with shoes and socks off.

2. Using the end of the handle of the reflex hammer, trace a path along the lateral side from heel to the little toe to the big toe.

3. Observe for the flexion (toe curling) which is recorded as a normal plantar reflex.

4. If the toes curl, this is called a Negative Babinski response and is normal. If the toes flare, then an abnormal response is recorded and is called a Positive Babinski response and indicates CNS damage.

5. Record the results.

B. Ciliospinal reflex – This reflexive pathway is from the skin to the thoracic spinal cord, through the sympathetic trunk, then to the dilator pupillae muscle of the eye. This is another test of the CNS.

1. Pinch the back of the subject’s neck,

2. Watch pupils for a response.

3. A normal response is dilation of the pupil.

4. Record your results.

question part c

Homeostasis Lab - Heart Beat Regulation

This lab is designed to help explore the process of homeostasis as it applies to regulating heart rate. It also should help how a sampling process works.

Make two copies of the data sheet (or make your own) and paste them into your report.

1. Take a pulse for six seconds, record this number in the table below.

2. Every 15 seconds for the next three minutes, take a pulse again for six seconds, record each of these values.

3. Multiply each of these values by 10 to get the beats per minute.

4. Now average these numbers (this is the setpoint for the pulse at resting). Note the range of values (that is how far they can deviate from the set point).

5. The next step is to take a 30 second reading. Multiply this number by 2 to get beats per minute.

6. How does this compare to the setpoint?

7. Repeat steps 1 through 6 after running in place for 30 seconds. Record the same data.

8. After getting 8 readings, stop and plot these numbers on a piece of graph paper. The X-axis should be minutes and the Y-axis should be heart rate.(Don't forget to connect the points ). You can do this in Excel and then import it into Word. Or you can e-mail this to me.

Submit your lab report in the correct format.. Respond to the questions above. Explain WHY the results were what they were. Compare the resting and post-exercise and postulate explanations for the differences. You should have two data tables and one graph with your heart rate data from both tables on it in your report.

question part d

What was one thing you found interesting, confusing or surprising about any of the lab activities? Why?