Answer:
<em>$111.11 or 111.11% of face value</em>
Explanation:
Assuming the face value of $100 for all bonds (without loss of generality)
If the two year coupon bond is repackaged as a one year zero coupon bond paying $12 after one year and another two year bond paying $112 after 2 years, the price of the two zero coupon bonds are given as
Price of one year Zero coupon bond = 12/1.05 = $11.43 (one year ZCB has YTM of 5%)
Price of two year Zero coupon bond = 112/1.06^2 = $99.68 (two year ZCB has YTM of 6%)
So, one can sell the repackaged bonds at a price = $11.43+ $99.68 = $111.11 or 111.11% of face value
Answer:
$24.86
Explanation:
The estimated stock of Zephyrl is $50
This is for a period of 5 years
The rate of return is 15%
Therefore the price that will be paid for this stock can be calculated as foloes
50= x (15/100^5)
50= x (0.15+1^5)
50= x (1.15^5)
50= 2.0113x
Divide both sides by the coefficient of x
= 50/2.0113
= 24.86
Hence the price that will be paid for the stock is $24.86
Answer:
III. The supply of soft drinks decreases
Explanation:
Changes different from price and quantity supplied or quantity demanded will cause changes in the total supply or demand. In this case, an increase in the cost of the aluminum used by soft-drink companies will increase their cost of production. Because this affects companies which supply canned soft drinks, this increase in the cost of production will affect the total supply. If the cost of production increase, with the same resources, they will produce less but need to compensate this decrease in units by increasing the price. In the demand and supply graph, the supply will shift to the left and this will decrease the equilibrium quantity and increase the equilibrium price.
The answer to this question is:
<span>The write-off of intangible assets is called?
</span>C-"Amortization."
Hoped This Helped, <span>
Awifeamother
Your Welcome :) </span>
