​(Bond valuation​) You are examining three bonds with a par value of ​$1 comma 000 ​(you receive ​$1 comma 000 at​ maturity) and are concerned with what would happen to their market value if interest rates​ (or the market discount​ rate) changed. The three bonds are Bond Along dasha bond with 5 years left to maturity that has an annual coupon interest rate of 8 ​percent, but the interest is paid semiannually. Bond Blong dasha bond with 10 years left to maturity that has an annual coupon interest rate of 8 ​percent, but the interest is paid semiannually. Bond Clong dasha bond with 15 years left to maturity that has an annual coupon interest rate of 8 ​percent, but the interest is paid semiannually. What would be the value of these bonds if the market discount rate were a. 8 percent per year compounded​ semiannually? b. 5 percent per year compounded​ semiannually? c. 15 percent per year compounded​ semiannually? d. What observations can you make about these​

Answers

Answer 1

Answer:

Bond A, 5 years to maturity, semiannual coupons, 8%

Bond B, 10 years to maturity, annual coupon, 8%

Bond C, 15 years to maturity, semiannual coupon, 8%

a) market rate 8% semiannual

Bonds A and C will be worth $1,000 (par value)

price of bond B:

effective interest rate = 1.04² - 1 = 8.16%PV of face value = $1,000 / 1.04²⁰ = $456.39PV of coupon payments = $80 x 6.66192 (PV ordinary annuity factor, 8.16%, 10 periods) = $532.95

market price = $989.34

b) price of bond A:

PV of face value = $1,000 / 1.025¹⁰ = $781.98

PV of coupon payments = $40 x 8.75206 (PV ordinary annuity factor, 2.5%, 10 periods) = $350.08

market price = $1,132.06

price of bond B:

effective interest rate = 1.025² - 1 = 5.0625%PV of face value = $1,000 / 1.025²⁰ = $610.27PV of coupon payments = $80 x 7.69817 (PV ordinary annuity factor, 5.0625%, 10 periods) = $615.85

market price = $1,226.12

price of bond C:

PV of face value = $1,000 / 1.025³⁰ = $476.74

PV of coupon payments = $40 x 20.93029 (PV ordinary annuity factor, 2.5%, 30 periods) = $837.21

market price = $1,313.95

c) price of bond A:

PV of face value = $1,000 / 1.075¹⁰ = $485.19

PV of coupon payments = $40 x 6.86408 (PV ordinary annuity factor, 7.5%, 10 periods) = $274.56

market price = $759.75

price of bond B:

effective interest rate = 1.075² - 1 = 15.5625%PV of face value = $1,000 / 1.075²⁰ = $235.41PV of coupon payments = $80 x 4.91292 (PV ordinary annuity factor, 15.5625%, 10 periods) = $393.03

market price = $628.44

price of bond C:

PV of face value = $1,000 / 1.075³⁰ = $114.22

PV of coupon payments = $40 x 11.81039 (PV ordinary annuity factor, 7.5%, 30 periods) = $472.42

market price = $586.64

d) If the market rate is lower than the coupon rate, then the bonds will sell at a premium. The longer the maturity date, the larger the variations in market price due to different interest rates. E.g. the 15 year bond is more affected than the 5 year bond.


Related Questions

according to the video what are some quality's petroleum engineers need? check all that apply.​

Answers

Hello! Your answer is shown below,

Petroleum engineers should have natural abilities to make them successful. Personal attributes include strong mathematics and analytical skills to design equipment and solve problems in drilling.

Hope this helps!

Answer:

The answer is

A) willingness to travel

E) problem-solving skills

F) patience

Explanation:


Mention any there objectives of Accounting​

Answers

Answer:

objectives of accounting in any business are:-

systematically record transactions sort and analysing them, prepare financial statements position, and aid in decision making with financial data and information about the business.

hope it is helpful....

CollegePak Company produced and sold 86,000 backpacks during the year just ended at an average price of $46 per unit. Variable manufacturing costs were $20.00 per unit, and variable marketing costs were $6.68 per unit sold. Fixed costs amounted to $556,000 for manufacturing and $228,800 for marketing. There was no year-end work-in-process inventory. (Ignore income taxes.) Required:Compute CollegePak’s break-even point in sales dollars for the year. (Do not round intermediate calculations. Round your final answer up to the nearest whole dollar.)Compute the number of sales units required to earn a net income of $620,000 during the year. (Do not round intermediate calculations. Round your final answer up to nearest whole number.)CollegePak's variable manufacturing costs are expected to increase by 10 percent in the coming year. Compute the firm’s break-even point in sales dollars for the coming year. (Do not round intermediate calculations. Round your final answer up to the nearest wh

Answers

Answer:

Part 1

$1,868,571

Part 2

72,713 units

Part 3

$ 2,065,263

Explanation:

Break even point is the point where a firm makes neither a profit nor a loss.

Break even point (sales dollars) = Fixed Costs ÷ Contribution Margin Ratio

Where,

Contribution Margin Ratio = Contribution ÷ Sales

                                            = (Sales - Variable Costs) ÷ Sales

                                            = ($46.00 - $20.00 - $6.68) ÷ $46.00

                                            = 0.42

Therefore,

Break even point (sales dollars) = ($556,000  + $228,800) ÷ 0.42

                                                    = $ 1,868,571.429

                                                     = $1,868,571

Units to achieve a target profit = Fixed Costs + Target Profit ÷ Contribution per unit

Where,

Contribution per unit = Sales per unit - Variable Costs per unit

                                   = $46.00 - $20.00 - $6.68

                                   = $19.32

Therefore,

Units to achieve a target profit = ($556,000  + $228,800 + $620,000) ÷ $19.32

                                                   = 72,712.21532

                                                    = 72,713

After 10% increase in variable manufacturing costs.

Variable manufacturing costs = ($20.00 × 1,10)

                                                 = $22

Contribution Margin Ratio will be   = (Sales - Variable Costs) ÷ Sales

                                                          = ($46.00 - $22 - $6.68) ÷ $46.00

                                                          = 0.37652

                                                          = 0.38

Break even point (sales dollars) = ($556,000  + $228,800) ÷ 0.38

                                                     = $ 2,065,263.15

                                                     = $ 2,065,263

             

How and why is SWOT (strengths, weakness, opportunities, and threats) used in the marketing plan ?

Answers

Answer:

SWOT Analysis is a simple but useful framework for analyzing your organization's strengths, weaknesses, opportunities, and threats. It helps you to build on what you do well, to address what you're lacking, to minimize risks, and to take the greatest possible advantage of chances for success.

Explanation:

Type the correct answer in the box. Spell the word correctly. Which trait is described in the given sentence? is acting consistently according to one's values and principles. ​

Answers

Answer:

integrity

Explanation:

Answer:

integrity

Explanation:

Lillian has a master's degree in logistical engineering. She has worked with large
manufacturing warehouses in the past. What company in the Manufacturing career
cluster might consider hiring Lillian?

a. a quick cement packaging company in need of a lab tech

b. an appliance manufacturer who creates several different items

c. a furniture upholstery firm looking for help with purchasing

d. a government agency in need of a safety inspector

Answers

C is the correct answe

Would pebbles at the beach make a good form of money explain why or why not.

Answers

Answer: there are some pebbles but some can be really rare find out why.

Explanation: They are pretty tiny, in order that they may be accustomed obtain most things. they're going to not rot or otherwise disappear. the matter is that pebbles square measure approach too common to use for cash. If anyone will blast off to a beach or different such place and acquire tons of a substance, it's not terribly helpful as cash.

Protecting intellectual property rights is important to a free enterprise system because:
A. it gives the government the ability to regulate businesses.
B. it allows entrepreneurs to profit from their ideas.
C. it ensures that businesses sell products at fair prices.
D. it makes more money available for starting new companies

Answers

Answer:

B. it allows entrepreneurs to profit from their ideas.

Explanation:

Intellectual properties are valuable ideas, innovations, and creations to a business. They are intangible assets that give a business its competitive advantage. Protecting intellectual properties ensure an individual or entity reaps the full benefits of the inventions and creations.

Protecting intellectual properties safeguards a company's ideas from being exploited by its competitors for commercial gains. It gives a business the right to exclusively profits from its innovations. Protecting intellectual properties encourages research and development as entrepreneurs are guaranteed to benefit from their creations.

Which results are more likely for someone without personal finance skills? Select three options.
larger long-term credit or loan costs
less preparation for emergencies
fewer utility expenses
simple long-term investment strategies
increased long-term challenges

Answers

Answer:

1,2 & 5

Explanation:

Answer:

1, 2, 5

Explanation:

edge 2021

HELP!!!!!!Match the job role with the job title.
Evaluate student
applications for
financial aid.
Review financial records
of large businesses
and corporations.
Gather evidence and
prepare for court.
Review policies and grant
funds to students in need.
Conduct research
that is pertinent
to a criminal case.
Review tax documents
and returns for errors
and inaccuracies.
Internal Revenue Investigator
Federal Aid Coordinator
Paralegal

Answers

Answer:

Internal revenue investigator: Review Tax Documents, Review financial records.

Federal Aid Coordinator: Evaluate Student Applications, Review policies and grant funds.

Paralegal: Conduct research that is pertinant to a criminal case, gather evidence and prepare for court

Explanation:

Answer:

answer down below

Explanation:

1. You are enployed as a sales associate in a clothing store that has a frequent shopper
reward program For example, for every $100 spent, customers eam 10 points. When
they reach 1000 points they eam a $10 reward certificate. A friend who is not registered
in the frequent shopper reward program wants you to accept a $25 off certificate as
payment for a shirt. The prograny's guidelines state that points are not transferable and
they can only be used by a member. What will you do?

Answers

Answer:

dwddddd

Explanation:

Advise the team leader on the activities that should take place during the performing stage

Answers

The correct answer to this open question is the following.

Although there is no more context or reference, we can say the following.

The activities that should take place during the performing stage would be the following.

During the performance stage, the leader and the members of its team are ready to start taking action. After passing the previous stages of the forming stage, the storming stage, the norming stage, it is time, the leader knows that it is the moment to do what was planned. So this performing stage determinant because actions are going to be evaluated to know the effectiveness of the leader.  So the leader knows that he/she has to be congruent with what it says and what it does, and deliver the proper results for the benefit of the team.

If average household income increases by 20%, from $50,000 to $60,000 per year, the quantity of rooms demanded at the Triple Sevens Rises from 300 rooms per night to 350 rooms per night. Therefore, the income elasticity of demand is positive , meaning that hotel rooms at the Triple Sevens area normal good .

Answers

Answer:

True

Explanation:

income elasticity of demand = % change in quantity demanded / % change in income

income elasticity of demand = 16.7% / 20% = 0.83, since it is positive, then they are normal goods but not luxury goods since the income elasticity of demand is ≤ 1.

If IED is negative, that means that a good is an inferior good, since the more you earn, the less you consume.

the greater the dash the easier the object will move​

Answers

Answer:

correct. its true and I absolutely agree with you. good job

Explanation:

Bc y=2x-1^3 is the equation

When submitting your résumé using an online fill-in-the-blank form, why is it better to copy and paste text from your résumé, rather than re-type the text?

Answers

To eliminate the risk of typos.

Individual sections of a resume must be copied and pasted into a slot on a Fill-in-the-blank form.Because your resume should be excellent, you'll want to copy and paste as much as possible from your original resume to eliminate the risk of typos. Only use important text if necessary, and proofread thoroughly.

For more information:

https://brainly.com/question/13957432?referrer=searchResults

Ashleigh hires a group of security staff. Each worker works an average of 80 hours per month at $14/hour. If her monthly labor cost for security workers is $23,520, how many security workers did Ashleigh hire? a) 15 b) 21 c) 36 d) 47

Answers

Answer:

b) 21

Explanation:

Each worker works an average of 80 hours per month and earns $14 per hour.

Each employee will earn 80 hours multiplied by $14

=80 x $14

=$1,120

If the monthly labor cost for security worked is $23,520, she has hired

=$23,520/$1,120

=21 security workers

Answer: 21 workers

Explanation:

The use of alcohol and other drugs cause you to lose your?

Answers

Answer:

liver cells

Explanation:

it eats at your inner parts of the body in prolonged use

Which of the following is the best description of
greenwashing?
O A. Committing to using only sustainable sources for
raw materials used in production
O B. Trying to eliminate as much pollution as possible by
relying on solar energy or other cleaner form of fuel
O C. Changing from traditional printing media to
environmentally friendly printing media
D. Changing practices superficially to appear more
environmentally friendly to consumers than they
truly are

Answers

Answer:

D. Changing practices superficially to appear more  environmentally friendly to consumers than they  truly are.

Explanation:

Greenwashing is the act of corporate companies in their attempts to convey a false impression to their customers that their products are environmentally friendly. Through this process, they provide misleading information.

Companies provide misleading information to their customers, in making the impression that their products are more environmentally friendly than other products. Thus, greenwashing can be described as changing the practices of the company/ brand superficially so that they appear more environmentally friendly than they really are to customers.

Answer:

D. baud

Explanation:

23
Page:
Find the s.p of a shirt whose MP is Rs
2700 when 13% VAT is levied ?


.​

Answers

Answer:

RS3051

Explanation:

the tax is going to be 113% since u add 100% because the s.p is going to rise

2700×113/100=3051

What does it mean to consider logic when prioritizing tasks?

Answers

Explanation:

To consider logic when prioritizing task means: You should order them by how long they take to achieve.

Answer:

Considering logic requires understanding which tasks need to be completed first in order to allow other tasks to become possible to complete. Setting priorities using logic assumes that it will just make sense for some tasks to be completed earlier.

Explanation:

What is the worst result of a team leader failing to delegate responsibility or
tasks?

A. The leader will end up working many hours of overtime.

B. The team will learn a lot by watching to see how the tasks should
be completed.

C. Some team members find reasons to start fighting with other
members.

D. The team might feel that the leader does not trust their abilities.

(Apex)

Answers

Answer:

the team might feel that the leader does not trust their abilities

Explanation:

The team might feel that the team leader does not trust their abilities is the worst result of a team leader failing to delegate responsibility or tasks. Option D is correct.

What is the team leader?

A team leader is someone who gives advice, teaching, direction, and leadership to a group of people in order to achieve a key outcome or set of aligned results.

Team leaders serve as the gear stick for a group of people who work towards the same objective for the company. A team leader directs and instructs a working group on a project or portfolio of tasks.

They are responsible for distributing tasks, monitoring progress toward goals, and guiding team members as needed. Even though they don't have a manager title, team leaders frequently function as defect mentors for the team.

Therefore, option D is correct, that The team may believe that the team leader does not believe in their talents as a consequence of the team leader's failure to delegate responsibilities or tasks.

To learn more about the team leader, refer to:

https://brainly.com/question/14522054

#SPJ5

The primary purpose of TV, magazines, movies is to entertain.

True
False

Answers

Answer:

True, but to inform as well

Explanation:

____________________ was a major reason why the United States changed more towards a mixed market economy.


Question 8 options:


The Great Depression



The Civil War



The American Revolution



The 9/11 Attacks

Answers

Answer: The Great Depression

Explanation:

The Great Depression occured due to the fact that there was a crash of the stock market and this affected the economy of the world. The United States and European countries were majorly hit hard as there was drastic reduction in the demand of goods and services.

The Great Depression led to the government looking for new ways to tackle the challenges and one of those policies was moving towards a mixed economy which is an economy whereby the Individuals and governments are all involved in goods and services production and distribution.

When you seek to define an issue, you should try to frame it in positive terms. T or F

Answers

Answer:

True

Explanation:

When you seek to define an issue, you should try to frame it in positive terms. The given statement is True.

What is the framing message?

Without changing the justifications or characteristics of the highlighted goods, message framing involves organizing and structuring a message. Although though both framing techniques use the same objective information, Rucker and his coauthors discovered that if the same message is framed in two distinct ways, its persuasiveness might change.

A problem or issue can be presented or structured by using a framing technique. In order to elicit the most support from your audience, framing entails identifying and clarifying the background of the issue. Framing depends on your audience. Always consider your assumptions before making a decision. Try to frame an issue in a favorable light when attempting to define it.

Thus, the mentioned above-given statement is True.

Learn more about the framing message here:

https://brainly.com/question/14299431

#SPJ6

Henry has been newly appointed as the head of the HR team at AAS Technologies. In an attempt to establish a more efficient and reliable workflow, Henry has taken up the responsibility of creating job descriptions and job specifications for the newly hired and current engineers within the organization. While doing so, Henry gathers information about the knowledge, skills, abilities, and other characteristics (KSAOs) required for an engineer to successfully perform the job. How will determining the KSAOs most benefit the organization?

Answers

Answer:

Explained below

Explanation:

KSAOs or knowledge, skills, abilities, and other characteristics, are the unique set of criteria required by a hiring agency or company for a particular job.

Henry, being the HR head at AAS Technologies looks for these features in a desirable candidates to find common sync between the job requirements and the capabilities of the candidate. It proves to be an effective method to filter out less desirable job seekers.

A government adopts a less progressive rate on income taxes. According to
the table, which citizen is more likely to pay a larger percentage of his or her
income in taxes as a result of this fiscal policy?
Citizens
Citizen A: A wealthy business owner
Citizen B: A poor farmer
A. Neither citizen
B. Citizen A
C. Citizen B
D. Both citizens

Answers

A wealthy business owner is more likely to pay a higher percentage of his or her income in taxes under progressive rate on income taxes.

what is progressive tax system?

Progressive tax system refers to a tax system that increases tax rate as the taxable income increases.

For example, a progressive tax system would increase the tax rate from 3% to 20% if the income bracket of the individual increases.

Therefore this type of tax system favors individuals in lower income bracket as they pay less with respect to percentage of their income when compared to wealthy individuals

Please read more about progressive rate on income taxes here:

https://brainly.com/question/23494200

Answer:

its citizen B

Explanation:

took the test

Supply-side policies have proven that smaller government makes the economy more efficient. ​ Select one: True False

Answers

Answer:

The given statement is "False".

Explanation:

Supply-side policies include those strategies that increase the economic ability of an enterprise as well as the ability to manufacture. To increase supply-side efficiency, there are also many specific steps that somehow an authority may undertake. Any strategy that increases the economic capacity of a nation's infrastructure and therefore its ability to transfer should be under the supply-side legal framework.

You are in the process of purchasing a new automobile that will cost you​ $27,500. The dealership is offering you either a​ $2500 rebate​ (applied toward the purchase​ price) or​ 1.9% financing for 48 months​ (with payments made at the end of the​ month). You have been preminus approved for an auto loan through your local credit union at an interest rate of​ 6.5% for 48 months. If you forgo the​ $2500 rebate and finance your new car through the dealership your monthly payments​ (with payments made at the end of the​ month) will be closest​ to: A. ​$573 B. ​$520 C. ​$595 D. ​$799

Answers

Answer:

C. ​$595

Explanation:

The computation of the monthly payment at the end of the month would be computed by using the spreadsheet.

In this two attachment is attached one contains the final values and the other ones contains the formula so that it would create a better understanding

Hence, the monthly payment is $595 and the same is to be considered

how can you save money by living at home while enrolled in post secondary school or training .

Answers

Answer:training can save money on. answer choices. books but it raises costs for tuition

Explanation:

Imagine that Art’s Flower Shop has blossomed into a large, sophisticated corporation, that advertises in the yellow pages and also spends thousands each year in its online advertising. Imagine also that the local government has required advertising services to buy a license, to raise money for the city.

Answers

Answer:

1)B. that the printer's conduct was gross negligence

2)D. No, because Art's is the party trying to enforce the contract

Explanation:

Imagine that Art’s Flower Shop has blossomed into a large, sophisticated corporation, that advertises in the yellow pages and also spends thousands each year in its online advertising. Imagine also that the local government has required advertising services to buy a license, to raise money for the city.

1)In order to win its case, Art's will have to prove __________

A. that its business suffered hugely when the yellow pages ad was omitted

B. that the printer's conduct was gross negligence

C. that flowers are important to the public welfare

2)If the yellow page printer does not have an advertising license, can it argue that it is not liable because it had no contract at all with Art's? ______________.

A. Yes, because it had no license

B. No, because the license is merely to raise money for the city

C. Yes, unless it had submitted an application for license and the application was pending

D. No, because Art's is the party trying to enforce the contract

D. No, because Art's is the party trying to enforce the contract

We are informed about an Art’s Flower Shop that has blossomed into a large, sophisticated corporation, that advertises in the yellow pages and also spends thousands each year in its online advertising. Imagine also that the local government has required advertising services to buy a license, to raise money for the city.

1) In order to win its case, Art's will have to prove that the printer's conduct was gross negligence.

gross negligence is when something, legal obligation, someone, lack maintainance, care. Or there is voluntary disregard. Therefore, if he want to win the case he has to prove that the printer's conduct was gross negligence.

2)If the yellow page printer does not have an advertising license, can it argue that it is not liable because it had no contract at all with Art's?

There is no argument that can be won here because, the enforcement of the contract is from the Art itself.

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Order the steps to show how to solve the equation 2(4x11)+9=19. The United States has a representative democracy. Which of the following best describes a representative democracy? A. People are not allowed to vote at all. B. People only vote on certain issues. C. People elect officials to represent them. D. People vote directly on every issue. can someone find the inverse and explain it step to step please!!!!!!! (FOR QUESTION 3) Write one paragraph that summarize booker T Washington views about serigration be sure you details from the up from slavery except to support your answer Help me please and use the correct verb!!! 10 pts! The Tacoma narrows bridge collapsed due to?A. RefractionB. ReflectionC. DiffractionD. Resonance A paragraph contains a _____________of events.PLZZZ HELP!!!!!!! Write each equation in y = mx + b form.1. x - y = 4 2. 2x + y = 9 answer for immediate brainliest the events describe the formation of an underwater sedimentary rock. place the events in chronological order. An art student uses a roll of wallpaper to decorate two gift boxes. The student will use 3 1 3 yards of paper for one box and 5 6 yard of paper for the other box. The paper must be cut into pieces that are 1 6 yard long. How many pieces will the student cut to use for the gift boxes? Your class is holding a fundraiser for a local charity.After the first week,your class raised 1/8 of your goal . After the second week,your class raised a total of 3/8 of your goal . What fraction of the goal was raised during the second week of the fundraiser need help ASAP please The midpoint M of GH has coordinates (7,6). Point H has coordinates (8, 7). Find thecoordinates of point G.Write the coordinates as decimals or integers. Advise the team leader on the activities that should take place during the performing stage I was confused because my teacher said "check your vosotros form endings and don't forget the accents!" I'm confused by what she means. Can someone help me !? There were 3 boys for every 4 girls in the group if there was 20 girls how many students went on the trip. Which of these is not part of the digestive system?a. tracheab. stomachc. liverO d. pancreas All of the following were effects of the Civil War except __________.A.intratribal conflicts occurring between full-blooded and half-blooded membersB.a mass amount of people immigrating out of the Indian TerritoryC.the economy being devastated by looting and the destruction of propertyD.the Union honoring tribal treaties signed with the ConfederacyAnswer is D, my fellow classmates