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erastova [34]
2 years ago
12

A 30-year maturity bond making annual coupon payments with a coupon rate of 12% has (Macauley) duration of 11.54 years and conve

xity of 192.4. The bond currently sells at a yield to maturity of 8%. a) Find the price of the bond if ytm falls to 7% (use financial calculator or spreadsheet).
Business
1 answer:
dsp732 years ago
7 0

The price of the bond if the yield to maturity falls to 7%, based on the period and amount will be $1,620.45.

<h3>What is the price of the bond at 7%?</h3>

We shall assume that the bond has a face value of $1,000.

The coupon is:

= 12% x 1,000

= $120

The price is:
= (Coupon x Present value interest factor of annuity, 30 years, 7%) + Face value of bond / ( 1 + rate) ^ number of periods

= (120 x 12.409) + (1,000 / (1 + 7%)³⁰)

= $1,620.45

Find out more on bond pricing at brainly.com/question/25596583.

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the 2010 federal budget for the united states includes spending $164 billion to pay interest on the national debt. if this amoun
Irina-Kira [14]

The total federal budget based on the budgeted interest on national debt is $3550 billion($3.55 trillion)

What percentage of the budget is $164 billion on national budget?

The spending on interest regarding the national debt is 4.62% of the entire federal budget, on that basis, we can convert the 4.62% to what 1% term and multiply that by 100% to ascertain the total federal budget.

4.62% of federal budget=$164 billion

1 % of federal budget=$164 billion/4.62

1 % of federal budget=$35.50 billion

100% of federal budget=$35.50 billion*100

100% of federal budget=$3.55 trillion

Find out more about federal budget on:brainly.com/question/15561900

#SPJ1

6 0
1 year ago
A(n) ________ is thought of as an overarching system of formal and informal relationships within which the firm participates to
Radda [10]

Answer:

value network                

Explanation:

In simple words, A value system refers to the graphical representation of the technological and social tools and how they are used within / around organisations. The points represent the public in a network of values. The entities are linked by means of connections representing goals and objectives. These outputs may be objects, information or income.

4 0
3 years ago
Imperfect markets: do not exist in democracies. always result in supply exceeding demand. always result in demand exceeding supp
Korolek [52]

Answer:

The correct answer is: when buyers and sellers have influence on price.

Explanation:

The imperfect market situations exist when there are few buyers or sellers such that they are able to influence the market. For instance, in a perfectly competitive market, there is a large number of buyers and sellers. So, any single buyer or seller is not able to influence the market. The price and output are determined by the market forces.  

In an imperfect market such as monopoly or oligopoly, few firms exist so they are able to fix output and price on their own.

5 0
3 years ago
What kind of risks can exist in a business?
andriy [413]
So many! Failing is the main one and losing everything
7 0
3 years ago
Read 2 more answers
People pursue _____________ projects in the market and ____________ projects in government.
Bingel [31]
A. Their own, their own
Is the answer
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3 years ago
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