Forum Post #1

In your own words, explain what corporate social responsibility (CSR) is. Name two examples of social responsible companies you know and explain why you consider them so.

We learned that CSR can be viewed as a pyramid with Philanthropic Responsibilities at the top. Discuss what particular advantages accrue to companies who proactively take steps to be philanthropically responsible.

Forum Post #2

When companies expand into the international arena, they do so either because their home market has matured or because they see real opportunities in the foreign market. Discuss which kinds of international strategies are most appropriate for companies in the following domestic industries:

• Producing movies
• Software
• Management consulting
• Breakfast cereals
• School of business

Forum Post #3

According to the pure expectations theory of interest rates, how much do you expect to pay for a one-year STRIPS on February 15, 2011?  What is the corresponding implied forward rate? How does your answer compare to the current yield on a one-year STRIPS?  What does this tell you about the relationship between implied forward rates, the shape of the zero coupon yield curve, and market expectations about future spot interest rates?  Remember to complete all parts of the questions, and report the results of your analysis.

Forum Post #4

1. What is the relationship between the price of a bond and its YTM?

   b. Explain why some bonds sell at a premium to par value, and other bonds sell at a discount. What do you know about the relationship

   between the coupon rate and the YTM for premium bonds? What about discount bonds? For bonds selling at par value?

   c. What is the relationship between the current yield and YTM for premium bonds? For discount bonds? For bonds selling at par value?