Answer:
Price of the bond decreases by $92.60 or decreases by 2.09%
Explanation:
Semiannual coupon payment = 5,000 x 6.4%/2 = $160.
+ Price between yield to maturity changes ( YTM = 8.1%/2 = 4.05%):
Price of the bond = [ (160/0.0405) x ( 1 - 1.0405^-20) ] + 5,000/1.0405^20 = $4,424.96.
+ Price between yield to maturity changes ( YTM = 8.4%/2 = 4.2%):
Price of the bond = [ (160/0.042) x ( 1 - 1.042^-20) ] + 5,000/1.042^20 = $4,332.36.
=> Price of the bond decreases by $92.60 ( 4,332.36- 4,424.96) or decreases by 2.09% (4,332.36/4,424.96 - 1).
Answer:
False
Explanation:
A lagged effect in marketing can be defined as the delay that comes from an effort put into marketing a product.
In marketing, efforts put into an advertisement can yield a greater result even after the lag period. This means that a product might need more than one advertisement and the combined effects of the advertisements will be seen overtime if not immediately.
In the above question, Joel still went on to get a Ford fusion after seeing the Toyota advert which means that something from his research must have influenced his decision. Either price, quality, or any other factors must have been responsible for Joel's choice but it is definitely not the lagged effect.
Cheers.
Answer:
$4.24287 million per year
Explanation:
Missing question: The swap will call for the exchange of 1 million euros for a given number of dollars in each year.
For structured three separate forward contracts of the exchange of currencies, the forward price could be found as follows
Forward exchange rate * $1 million error = Dollar to be received
Year 1 = 1.50*(1.04/1.03) * 1 million euros
Year 1 = 1.514563106796117 * 1 million euros
Year 1 = $1.5145 million
Year 2 = 1.50*(1.04/1.03)^2 * 1 million euros
Year 2 = 1.529267602978604 * 1 million euros
Year 2 = $1.5293 million
Year 3 = 1.50*(1.04/1.03)^3 * 1 million euros
Year 3 = $1.5441 million
The number of dollars each year is determined by computing the present value:
= 1.5145 / 1.04 + 1.5293 /(1.04)^2 +1.5441 / (1.04)^3
= 1.45625 + 1.41392 + 1.3727
= $4.24287 million per year