Answer:
$5.97
Explanation:
In order to determine the capital gain of the bond in a year's time,it is first first of all important to calculate the yield to maturity on the bond which is arrived at by applying the rate formula in excel as follows:
=rate(nper,pmt,-pv,fv)
nper is the number of coupon interest the bond would pay over its entire life of 15 years which is 15
pmt is the annual interest,7.9%*$1000=$79
pv is the current market price of the bond which is $790
fv is the value of $1000
=rate(15,79,-790,1000)=10.79%
Afterwards,the price of the bond in one year' time can then be calculated:
=-pv(rate,nper,pmt,fv)
The variables in the formula are as above except for nper which would reduce by 1 in a year's time
=-pv(10.79%,14,79,1000)
pv=$ 795.97
Hence the capital gain=price now-price one year ago/price one year ago
price now is $795.97
price one year ago was $790
Capital gain=$795.97-$790=$5.97
Capital gain %= ($795.97-$790)/$790=0.76%
A = P (1 + I)^n
40000 = 5000 (1 + 0.07)^n
(1.07)^n = 40000/5000 = 8
ln(1.07)^n = ln8
nln1.07 = ln8
n = ln8/ln1.07 = 30.7...
The best answer is closest to (d) 30.6 years.
Answer: A deferred call provision prohibits the bond issuer from redeeming callable bonds prior to a specified date.
Explanation:
A deferred call provision refers to the provision whereby the calling of a bond before a particular date is prohibited. The bond is known to be call protected during this period.
Therefore, a deferred call provision prohibits the bond issuer from redeeming callable bonds prior to a specified date.
This is true. Researchers suggest that ineffective reward and recognition strategies are factors responsible for the failures.
<h3>
What are global teams?</h3>
These are also referred to as the multinational teams. They are the specific type of team that is found in a workforce where the members may be people that are from different places.
By different places, we mean they are from different nations and their cultural backgrounds differ.
Read more on global teams here: brainly.com/question/5392895
Answer: 88.89 or 89
Explanation: Futures contract refers to a legal binding which obligates a buyer and seller to transact about a commodity, good, security or services at a predetermined price but goods are delivered or paid for in the future.
Given the following ;
Portfolio value(p) = $20million
Portfolio Beta (b) = 1.2
Index price (i) = 1080
Multiplier = 250
Future value(A) = index price × multiplier
Future value(A) = 1080 × 250 = 270000
Number of contracts (N) = (portfolio value × portfolio Beta) ÷ future value
N = ($20,000,000×1.2)÷270000
N = 24000000 ÷×270000
N = 88.8888=88.89
N = 89 (NEAREST whole number)
