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Katen [24]
2 years ago
14

3. A 9.3% annual coupon bond with a 10-year maturity and a $1,000 par value has a yield to maturity of 8%. Assuming that the yie

ld curve is flat and doesn’t shift, calculate the holding period return you would achieve from buying the bond, holding it for one year only.
Business
1 answer:
aliina [53]2 years ago
3 0

Holding period return is 8.000%

Price at the time of purchase=

1000*9.3% 8(1/1.08^10)+1000/1.08^10=1087.231058

Price at the time of sale=

1000*9.3%/8%*(1-1/1.08^9)+1000/1.08^9=1081.209543

Holding period return=

(1081.209543+1000*9.3%)/1087.231058-1=8.0000%

Coupon bonds, also known as bearer bonds or bond coupons, are debt securities with coupons attached that represent semi-annual interest payments. For coupon bonds, there is no record of the purchaser and issuer. The purchaser's name is not even printed on the certificate.

A coupon bond is a debt instrument with a removable piece of paper that can be peeled off the bond itself and taken to a bank or broker to pay interest. These removable pieces of paper are called coupons and represent interest payments to creditors.

Learn more about   coupon bonds here

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____________ risk refers to the danger of changes in buying power during times of rising or falling prices.
natali 33 [55]

The risk refers to the danger of changes in buying power during times of rising or falling prices is known as inflation.

<h3>What is a risk?</h3>

Risk refers to the uncertainty or probability of an accidental event that will affect the decision-making of an individual or organization. In business the higher the risk, the higher the profit is achieved.

Inflation is defined as the ratio at which prices rise over time. Inflation is usually defined as a wide measure of price increases or increases in the cost of living in a place affecting its citizens.

Inflation diminishes the purchasing power of individuals which leads to high risk for investors who paid a fixed rate of interest on the investment. Most concerned about inflation-reducing returns are those individuals who invested in cash equivalents.

Learn more about risk, here:

brainly.com/question/17284407

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3 0
2 years ago
Megan McCoy has a bachelor's degree in business management and human resources. She has 5 years of HR experience as an HR assist
mote1985 [20]

Answer:

The correct option of this question is (B). Explanation of this answer is given below in the explanation section

Explanation:

(B) is Correct Option:

Human resource manager in an organization is responsible for planning, directing and coordinating human resource management activities such as employee compensation, employee recruitment, promotions offer to an employee, etc. The major duties of the HR manager is to manage the human resource in an organization.

Why other options are not correct

(A). Interaction with customers to provide information in response to inquiries about products and services, and to handle and resolve complaints is not the responsibility of the HRM manager. It is the responsibility of the Marketing department and customer service department. In short, the customer service and marketing department are mainly responsible to perform such activities in an organization.

(C). Analyze financial information and prepare financial reports to determine or maintain record of assets, liabilities, profit and loss, tax liability, or other financial activities within an organization is the responsibility of the accounting department. And, accounting manager is responsible for such types of activities to perform in an organization.

(D) Supervise and coordinate the activities of clerical and administrative support workers is the responsibility of Admin (a managerial post) working in the administrative unit of an organization. Usually, at this post, first-line manager, team lead, assistant manager are working under the supervision of the administrative department.

(C) Compile and keep personnel records. Record data for each employee, such as address, weekly earnings, absences, amount of sales or production, supervisory reports on ability, and date of and a reason for termination is also a responsibility of the HRM and sales department. However, it is noted some responsibility such as employee record management is the sole responsibility of the HRM department and HRM manager. But termination of an employee, absence recording, amount of sales or production are the responsibility of other departments such as the administrative department, sales department, and marketing department, etc. However, this option is also correct in a sense only if employee management involved, otherwise, this option is not correct.

3 0
4 years ago
Suppose foreigners spend $7 billion on american exports in a given year and americans spend $5 billion on imports from abroad in
Rina8888 [55]
Around <span>+$2 billion. would be the answer!</span>
5 0
3 years ago
How has the distribution of income in the united states changed over the last 20 years? it has not changed appreciably. it has b
GarryVolchara [31]
The distribution of income in the United States has become less equal over the last 20 years. This means that the difference between the rich and the poor has grown. It could mean that the rich have started getting more money while the poor get what they used to get, or even less. In any case, the gap between their income has changed greatly during this time period.
8 0
3 years ago
The long run is characterized by: Group of answer choices the relevance of the law of diminishing returns. at least one fixed in
Pachacha [2.7K]

Answer:

D. The ability of the firm to change its plant size.

Explanation:

The long run in economics is a period of time in which all inputs in the production process can be varied. It allows firms to have the ability to change its plant size that would be more or less fixed in the short run. The factors of production used in the long run are variable inputs. Variable inputs are inputs that can be change or altered in a production system. The firm in the long run has the abilities to respond to changes in the market and demand and can build bigger factory or larger plants.

8 0
3 years ago
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