We Need to Get Rid of Animal Testing - 742 Words

21st Century In the 21st century I would get rid of animal testing .Animal research has had a vital role in many scientific and medical advances of the past century and continues to aid our understanding of various diseases throughout the world. There are countless reasons why I would personally get rid of animal testing. Just like everything there are advantages and disadvantages. For example the internet is advantageous because you can find useful information about your city, your homework and much more, however it can be used for the wrong use too such as adult sites, online drug dealing and hacking. At this time and age animals are used like slaves placed in captivity in dark, dusty and dirty cells only to be brought and put through cruel ,painful and inhumane tests. It is cruel to put unprotected animals through such experiments. I also believe it is unethical to make animals live life in a lab cage and intentionally put through harm isolation and distress. We all know how bad it is to feel fearful, frightened and terrified. Animal experiments prolong the suffering of people waiting for effective cures by misleading experiments which squander precious money, time and resources that could have been spent on human relative research. This wasteful experiment continuously get in the way of forward-thinking scientist who could have developed more humane, modern cures, not using animal research. Using material’s such as human based research, human patient simulatorsShow MoreRelatedAnimal Testing is Cruel1340 Words   |  5 PagesAll around the globe, animal testing has been the most controversial and frequently debated topic. Animal testing is cruel, however, it has helped us develop and become more advanced in sciences and technology. Below are the points and reasons for and against the motion, discussed to help you pick your side. Issues related to animal experimentation are frequently discussed these days, particularly in the media. It is often said that animals should not be used in testing because it is cruel and unnecessaryRead MoreThe Negative Effects Of Animal Testing941 Words   |  4 PagesAnimal testing has been around since 500 BC starting with dissecting animals in ancient greece. French animal testers believed that animals were â€Å"automata† and could not feel pain or emotions. There was no public objections to animal testing until the 19th century when there was an increase of adopting domestic pets. Nowadays public opinion is split down the middle on whether or not animals should be tested on. The animals are generally tested on for cosmetics, health, commercial, biomedical, spaceRead MoreThe Ongoing Issue of Animal Cruelty, Abuse, and Animal Testing1078 Words   |  4 PagesAnimal cruelty is an ongoing issue in today’s society. When we listen to the news and hear about these animals being starved, beaten, and treated poorly our hearts drop and we get a lump in our throat holding back the tears. We see these animals suffer, we see the pain in th eir eyes begging for our help, we want to put an end to this but we fail to see the bigger picture. Animal cruelty is a more severe and extreme than we think it is. Animal cruelty just is not owners beating their pets. AnimalRead MoreAnimal Testing Is Bad1374 Words   |  6 PagesAGAINST ANIMAL TESTING! The question is not, Can they reason? nor, Can they talk? but rather, Can they suffer?   Did you know that over a hundred million animals get injured or die due to animal testing? But when you think about is it actually legal? So the thing is it doesn’t matter what we think because there are people who want themselves to live a better life then the animals and they do experimentation on the animals just so humans can live a better life. AndRead MorePersuasive Essay On Animal Testing1078 Words   |  5 PagesAnimal testing isn’t something that’s new and unheard of, it has been around for centuries. Using animals for research testing is not only being done in the U.S but also all over the world. What many people don’t understand is that these tests don’t just involve cute, little mice and a maze with a block of cheese at the finish line, it is long days of just sitting in a small cage with little food waiting to be chosen for the next terrifying and painful experiment. It is a harmful and cruel way ofRead MoreOver The Past 1500 Years Human Kind Has Used Animals For1485 Words   |  6 Pageskind has used animals for testing and they still use animals for testing today. Most experiments made on animals are for medical and cosmetic purposes. People that are for testing on animals usually argue that we would not be where we are today if we didn’t experiment on animals. Others that are against it say that these experiments and methods weren’t always necessary for everything we have accomplished. Now with all of our modern technology, science, and research do we still need to take trialsRead MoreAnimal Testing Is Inhumane For Diseases, And Development Of Medical Treatments983 Words   |  4 PagesWhat is animal testing? Animal testing is when scientist experiment on animals to find cures for diseases, and development of medical treatments. Many animals die because of this. Majority of people don’t know what they go through and how the process is done. Animal testing is inhumane for th e following: why it is done, how it is done, and when it is done. To begin with, why is it done? Animal testing is done to protect humans from bad products that may hurt them, also to find ways to cure diseasesRead MoreAnimal Testing Should Be Illegal827 Words   |  4 PagesAnimal Testing Should Be Illegal Animal testing, also known as animal experimentation, is the use of animals in experiments to test product safety. I believe it is a big problem in our society. Every year at least 2.7 million animals are killed in laboratories in Australia alone and at least thirty-three animals die each second worldwide, due to cruel animal tests. Many companies feel it is okay to test on animals because they are deemed not as physiologically or emotionally complex as humansRead MoreGenetically Modified Organism : An Organism1364 Words   |  6 Pages GMOs today are a great leap to another stage of technology we are still developing and researching†¦ as some people think, but they are not the most essential thing we need today. Injecting chemicals and drugs into food for â€Å"more nutrients† and placing harmful pesticides is not the ideal way of bringing a better cause into our world. These chemicals are then eaten by humans, and what happens after? People get sick. Furthermore, anim als, plants, and our environment are disrupted as well. Also, theseRead MoreThe Ethical Treatment Of Animal Testing1199 Words   |  5 Pagesnot animals such as mice and rats should be experimented on. The organization Psychologist for the Ethical Treatment of Animals believes in observing animals instead of experimenting on them (Meyer). Another known organization is People for the Ethical Treatment of Animals (PETA). An organization that is in favor of animal experimentation is called Pro-Test and is located in the United Kingdom (UK). This organization thinks that experimenting on animals may help humans. About 95% of animals are not

Abuse Effects Future Generations By James T. Johnson

Abuse Effects Future Generations This week’s assignment addresses James T. Johnson, a 24 year-old construction worker who lives with his mother. The assignment elaborates on Johnson’s average week. His week consists of making it to work on time, do his work as instructed, and coming home at the end of the day. Every now and then, Johnson will accompany some fellow coworkers who go out on an occasional Friday evening. However, Johnson has a secret in addition to his average week. He burglarizes homes and garages in the neighboring communities. Johnson sells what he steals through the internet or at pawn shops two counties over. The assignment details discusses that this past weekend, Johnson was arrested during a burglary when he entered a home where the home owner was present. Unfortunately due to his actions, Johnson’s mother had to mortgage her home in order to afford bailing him out of jail. 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Financial Environment and Interest Rate and Inflation Free Essays

An Assignment of Business Finance Course Code: FIN -2101 Submitted To: Md. Monzur Morshed Bhuiya Associate Professor Department of Finance Jagannath University, Dhaka. Submitted By: Md. We will write a custom essay sample on Financial Environment and Interest Rate and Inflation or any similar topic only for you Order Now Mazharul Islam. Group Representative of Finance Interface B. B. A, 3rd Batch (2nd Year, 1st Semester) Session: 2008-2009 Department of Finance Jagannath University, Dhaka. Date of Submission: 25-10-2010 Department of Finance Jagannath University 1|Page 1 Sl. No. Name 01. Md. Mazharul Islam. (Group Representative) 02. Khadizatuz Zohara. Roll No. 091541 091526 Department of Finance Jagannath University 2|Page Table of Contents Sl. No. 2-1 2-2 2-3 2-4 2-5 2-6 2-7 2-8 2-9 2-10 2-11 Contents Problems Yield Curves Yield Curves Inflation and Interest Rate Rate of Interest Real Risk-Free Rate, MRP and DRP Exam-Type Problems Expected Inflation Rate Expected Rate of Interest Expected Rate of Interest Interest Rate Interest Rate Expected Rate of Interest Ending Part Formula and Necessary Illustration for Calculation Summary of the Assignment Page No. 5 6 7 9 10 12 13 14 14 15 16 17 18 Department of Finance Jagannath University 3|Page The Financial Environment: Interest Rates Problems 2-1: Suppose you and most other investors expect the rate of inflation to be 7 percent next year, to fall to 5 percent during the following year, and then to remain at a rate of 3 percent thereafter. Assume that the real risk-free rate, k*, is 2 percent and that maturity risk premium on treasury securities rise from zero on very short-term bonds ( those that mature in few days) by 0. 2 percentage points for each year to maturity, up to a limit of 1. 0 percentage point on five year or longer-term T-bonds. a. Calculate the interest rate on one, two, three, four, five, 10 and 20 year Treasury securities, and Plot the yield curve. . Now suppose IBM, a highly rated company, had bonds with the same- maturities as the Treasury bonds. As an approximation, plot a yield curve for IBM on the same graph with the Treasury bond yield curve, (Hint: Think about the default risk premium on IBM’s long-term versus its short-term bonds. ) c. Now plot the approximate yield curve of Long Island Lighting Company (LILCO), a risky nuclear utility. Solution 2-1: Requirement ‘a’: Expected Annual Inflation Rate 7% 5% 3% 3% 3% 3% 3% Real Risk-free Rate (k*) 2% 2% 2% 2% 2% 2% 2% Average Expected Inflation Rate or Inflation Premium (IP) = 7% 1 =7% 2 = (7%+5%) ? 2 = 6% 3 = (12%+3%) ? 3 = 5% 4 = (15%+3%) ? 4 =4. 5% 5 =(18%+3%) ? 5 = 4. 2% 10 =(21%+3%? 5) ? 10=3. 6% 20 =(36%+3%? 10) ? 20=3. 3% Bond Type 1st year bond 2nd year bond 3rd year bond 4th year bond 5th year bond 10th year bond 20th year bond Average Nominal Interest Rate = k* + IP 9% 8% 7% 6. 5% 6. 2% 5. 6% 5. 3% Bond Type 1st year bond 2nd year bond 3rd year bond 4th year bond 5th year bond 10th year bond 20th year bond Maturity Risk Premium (MRP) 0. 2% 0. 2%+0. 2% =0. 4% 0. 4%+0. 2% =0. % 0. 6%+0. 2% =0. 8% 0. 8%+0. 2% =1. 0% 1. 0% 1. 0% Department of Finance Jagannath University 4|Page And Bond Type 1st year bond 2nd year bond 3rd year bond 4th year bond 5th year bond 10th year bond 20th year bond The yield Curve: + 9% + 0. 2% 8% + 0. 4% 7% + 0. 6% 6. 5% + 0. 8% 6. 2% + 1. 0% 5. 6% + 1. 0% 5. 3% + 1. 0% Interest Rate (k) 9. 2% 8. 4% 7. 6% 7. 3% 7. 2% 6. 6% 6. 3% 10. 5 10. 0 9. 5 9. 0 8. 5 Yield (%) 8. 0 7. 5 7. 0 6. 5 6. 0 5. 5 5. 0 0 2 4 6 8 Yield Curve LILCO IBM T – Bonds – Bonds T 10 12 14 16 18 20 Yield of Maturity Requirement ‘b’: The interest rate on the IBM bonds has the same components as the Treasury securities, except that the IBM bonds have default risk, so a default risk premium must be included. Therefore, = * + IP + MRP + DRP For a strong company such as IBM, the default risk premium is virtually zero for short-term bonds. However, as time to maturity increases, the probability of default, although still small, is sufficient to warrant a default premium. Thus, the yield risk curve for the IBM bonds will rise above the yield curve for the Treasury securities. In the graph, the default risk premium was assumed to be 1. 2 percentage points on the 20-year IBM bonds. The return should equal 6. 3% + 1. 2% = 7. 5%. Department of Finance Jagannath University 5|Page Requirement ‘c’: Long Island Lighting Company (LILCO) bonds would have significantly more default risk than either Treasury securities or IBM bonds, and the risk of default would increase over time due to possible financial deterioration. In this example, the default risk premium was assumed to be 1. 0 percentage point on the one-year LILCO bonds and 2. 0 percentage points on the 20-year bonds. The 20-year return should equal 6. 3% + 2% = 8. 3%. ————- Problem 2-2: The following yield on U. S. Treasury securities were taken from The Wall Street Journal on January 7, 2004: Term Rate 6 months 1. 0% 1 year 1. 2% 2 year 1. 6% 3 year 2. 5% 4 year 2. 9% 5 year 3. 7% 10 year 4. 6% 20 year 5. 1% 30 year 5. 3% Plot a yield curve based on these data. Discuss how each term structure theory mentioned in the chapter can explain the shape of the yield curve you plot. Solution 2-2: 5. 35 5. 30 5. 25 Yield (%) 5. 20 5. 15 5. 10 5. 05 5. 00 4. 95 4. 90 4. 85 0 5 Yield Curve 10 15 20 Maturity (years) 25 30 ———— Department of Finance Jagannath University 6|Page Problem 2-3: Inflation currently is about 2 percent. Last year the Fed took actions to maintain inflation at this level. However, the economy is showing signs that it might be growing too quickly, and reports indicate that inflation is expected to increase during the next five year . Assume that at the beginning of 2005, the rate of inflation expected for the year is 4 percent; for 2006, it is expected to be 5 percent; for 2007, it is expected to be 7 percent; and, for 2008 and every year thereafter, it is expected to settle at 4 percent. a. What is the average expected inflation rate over the five year period 2005-2009? b. What average nominal interest would, over the five-year period, be expected to produce a 2 percent real risk-free rate of return on five-year Treasury securities? c. Assuming a real risk-free rate of 2 percent and a maturity risk premium that starts at 0. 1 percent and increases by 0. 1 percent each year, estimate the interest rate in January 2005on bond that mature in one, two, five, 10 and 20 years and draw a yield curve based on these data. d. Describe the general economic conditions that could be expected to produce an upward-sloping yield curve. . If the consensus among investors in early 2005 is that the expected rate of inflation for every future year is 5 percent ( = 5% for t = 1 to ? ), what do you think the yield curve would look like? Consider all the factors that are likely to affect the curve. Does your answer here make you question the yield curve you drew in part c? Solution 2-3: Requirement ‘a b’: Expected Annual Inflation Rate 4% 5% 7% 4% 4% 4% 4% Real Risk-free Rate (k*) 2% 2% 2% 2% 2% 2% 2% Average Expected Inflation Rate or Inflation Premium (IP) 1 = 4% 1 =4% 2 = (4%+5%) ? 2 = 4. 5% 3 = (9%+7%) ? 3 = 5. 33% 4 = (16%+4%) ? =5% 5 =(20%+4%) ? 5 = 4. 8% 10 =(24%+4%? 5) ? 10=4. 4% 20 =(44%+2%? 5) ? 20=4. 2% Bond Type 1st year bond 2nd year bond 3rd year bond 4th year bond 5th year bond 10th year bond 20th year bond Average Nominal Interest Rate = k* + IP 6% 6. 5% 7. 33% 7% 6. 8% 6. 4% 6. 2% Requirement ‘c’: Bond Type 1st year bond 2nd year bond 3rd year bond 4th year bond 5th year bond 10th year bond 20th year bond Department of Finance Maturity Risk Premium (MRP) 0. 1% 0. 1%+0. 1% =0. 2% 0. 2%+0. 1% =0. 3% 0. 3%+0. 1% =0. 4% 0. 5%+0. 1% =0. 5% 0. 5%+(0. 1%? 5) =1. 0% 1. 0%+( 0. 1%? 10) =2. 0% Jagannath University 7|Page And Bond Type 1st year bond 2nd year bond 5th year bond 10th year bond 20th year bond The Yield Curve: 9. 0 8. 0 7. 0 6. 0 5. 0 4. 0 3. 0 2. 0 1. 0 0. 0 0 2 4 + 6% + 0. 1% 6. 5% + 0. 2% 6. 8% + 0. 5% 6. 4% + 1. 0% 6. 2% + 2. 0% Estimated Interest Rate (k) 6. 1% 6. 7% 7. 3% 7. 4% 8. 2% Yield Curve Yield (%) 6 8 10 12 14 Years to Maturity 16 18 20 Requirement ‘d’: The ? normal? yield curve is upward sloping because, in ? normal? times, inflation is not expected to trend either up or down, so IP is the same for debt of all maturities, but the MRP increases with years, so the yield curve slopes up. During a recession, the yield curve typically slopes up especially steeply, because inflation and consequently short-term interest rates are currently low, yet people expect inflation and interest rates to rise as the economy comes out of the recession. Requirement ‘e’: If inflation rates are expected to be constant, then the expectations theory holds that the yield curve should be horizontal. However, in this event it is likely that maturity risk premiums would be applied to long-term bonds because of the greater risks of holding long-term rather than short-term bonds: Yield (%) Actual yield curve Maturity risk premium Pure expectations yield curve Years to Maturity Department of Finance Jagannath University 8|Page If maturity risk premiums were added to the yield curve in part e above, then the yield curve would be more nearly normal—that is, the long-term end of the curve would be raised. ————- Problem 2-4: Assume that the real risk-free rate of return, k*, is 3 percent, and it will remain at that level far into the future. Also assume that maturity risk premiums on Treasury Bonds increase from zero for bonds that mature in one year or less to a maximum of 2 percent, and MRP increases by 0. percent for each year to maturity that is greater than one year – that is, MRP equals 0. 2 percent for a two-year bond, 0. 4 percent for a three year bond, and so forth. Following are the expected inflation rates for the next five years: Year Inflation Rate (%) 2005 3 2006 5 2007 4 2008 8 2009 3 a. b. c. d. What is the average expected inflation r ate for a one, two, three, four and five year bond? What should be the MRP for a one, two, three, four and five year bond? Compute the interest rate for a one, two, three, four and five year bond? If inflation is expected to equal 2 percent every year after 2009, what should be the interest rate for a 10 and 20 year bond? e. Plot the yield curve for the interest rates you computed in parts c and d. Solution 2-4: Requirement ‘a’: Expected Annual Inflation Rate 3% 5% 4% 8% 3% 2% 2% Real Risk-free Rate (k*) 3% 3% 3% 3% 3% 3% 3% Average Expected Inflation Rate or Inflation Premium (IP) 1 = 3% 1 =3% 2 = (3%+5%) ? 2 = 4% 3 = (8%+4%) ? 3 = 4% 4 = (12%+8%) ? 4 =5% 5 =(20%+3%) ? 5 = 4. 6% 10 =(23%+2%? 5) ? 10=3. 3% 20 =(33%+2%? 5) ? 20=2. 65% Bond Type 1st year bond 2nd year bond 3rd year bond 4th year bond 5th year bond 10th year bond 20th year bond Requirement ‘b’: Average Nominal Interest Rate = k* + IP 6% 7% 7% 8% 7. 6% 6. 3% 5. 65% Bond Type 1st year bond 2nd year bond 3rd year bond 4th year bond 5th year bond 10th year bond 20th year bond Maturity Risk Premium (MRP) 0% 0%+0. 2% =0. 2% 0. 2%+0. 2% =0. 4% 0. 4%+0. 2% =0. 6% 0. 6%+0. 2% =0. 8% 0. 8%+(0. 2%? 5)=1. 8% 2% Department of Finance Jagannath University 9|Page Requirement ‘c d’: Bond Type 1st year bond 2nd year bond 3rd year bond 4th year bond 5th year bond 10th year bond 20th year bond 6% + 0% 7% + 0. 2% 7% + 0. 4% 8% + 0. 6% 7. 6% + 0. 8% 6. 3% + 1. 8% 5. 65% + 2% Interest Rate (k) 6% 7. 2% 7. 4% 8. 6% 8. 4% 8. 1% 7. 65% Requirement ‘e’: Yield Curve 9. 0 8. 5 Yield (%) 8. 0 7. 5 7. 0 6. 5 6. 0 5. 5 5. 0 0 2 4 6 8 10 12 14 16 18 20 Years to Maturity ————Problem 2-5: Today’s edition o f The Wall Street Journal reports that the yield on Treasury bills maturing in 30 days is 3. 5 percent, the yield on Treasury bills maturing in 10 years is 6. 5 percent, and the yield on a bond issued by Nextel Communications that matures in six years is 7. 5 percent. Also, today the Federal Reserve announced that inflation is expected to be 2 percent during the next 12 months. There is a maturity risk premium (MRP) associated with all bonds with maturities equal to one year or more. a. Assume that the increase in the MRP each year is the same and the total MRP is the same for bonds with maturities equal to 10 years and greater that is, MRP is at its maximum for bonds with maturities equal to 10 years and greater. What is the MRP per year? b. What is default risk premium associated with Nextel’s bond? c. What is the real risk-free rate of return? Department of Finance Jagannath University 0 | P a g e Solution 2-5: Requirement ‘a’: Since MRP associated with all bonds with maturities equal to one year or more, so with Treasury bills maturing in 30 days, 0% MRP is associated, then k = k* + IP ? 3. 5% = k* + 2% ? k* = 3. 5% ? 2% ? k* = 1. 5% At the 10 year bond: k = k* + IP + MRP ? 6. 5% = 1. 5% + 2% + MRP ? MRP = 6. 5% ? 1. 5% ? 2% ? MRP = 3% As MRP at 10 year bond is 3%. So MRP per year is (3? 10) = 0. 3%. Requirement ‘b’: Since 30 days T-bond and 10 years T-bond fulfills the equations:- K = k* +IP +MRP, We have to calculate DRP from 6 years Nextel Bond: k = k* +IP +DRP +MRP ? 7. 5% = 1. 5% + 2% + DRP + (0. % ? 6) ? 7. 5% = 3. 5% + DRP + 1. 8% ? DRP = 7. 5% ? 3. 5% ? 1. 8% ? DRP = 2. 2% Requirement ‘c’: Now real risk-free rate of return k* = 3. 5% – IP = 3. 5% – 2. 0% = 1. 5% ————- Exam-Type Problems 2-6: According to The Wall Street Journal, the interest rate on one-year Treasury bonds is 2. 2 percent, The rate on two-year Treasury bonds is 3. 0 percent, and the rate on three-year Treasury bonds is 3. 6 percent. These bonds are considered risk free, so the rates given here are risk free rates ( ). The one-year bond matures one year from today, the two-year bond matures two year from today and so forth. How to cite Financial Environment and Interest Rate and Inflation, Papers