Answer:
a) 7% as their market price will adjsut to give the same yield as the market
b) bond P = -10.17
bonds D = 10.07
Explanation:
we have to calcualte the price variation of the bonds from now (10 years to maturity) to next year (9 years)
Bond P
C 90.000
time 10
rate 0.07
PV $632.1223
Maturity 1,000.00
time 10.00
rate 0.07
PV 508.35
PV c $632.1223
PV m $508.3493
Total $1,140.4716
then, at time = 9
C 90.000
time 9
rate 0.07
PV $586.3709
Maturity 1,000.00
time 9.00
rate 0.07
PV 543.93
PV c $586.3709
PV m $543.9337
Total $1,130.3046
Capital loss: 1,130.30 - 1,140.47 = -10.17
We repeat the process for bond D
C 50.000
time 10
rate 0.07
PV $351.1791
Maturity 1,000.00
time 10.00
rate 0.07
PV 508.35
PV c $351.1791
PV m $508.3493
Total $859.5284
C 50.000
time 9
rate 0.07
PV $325.7616
Maturity 1,000.00
time 9.00
rate 0.07
PV 543.93
PV c $325.7616
PV m $543.9337
Total $869.6954
Capital gain: 869.70 - 859.53 = 10.07
Answer:
<u>Current Ratio = 2; Yes</u>
Explanation:
First, to solve for current ratio, simply divide the current assets by the current liabilities.
So the current ratio would be $30,000 / $15,000 resulting to <em><u>2</u></em>
Now, a current ratio greater than one means that <u>Mister Ribs will be able to pay its current liabilities as they come due in the next year.</u>
However, because the current ratio at any one time is just a snapshot, it is usually not a complete representation of a company’s liquidity or solvency.
Edie's contract includes an <u>Appraisal contingency </u>, it gives her the right to pull out of the deal if the house doesn't appraise at the agreed upon sale price.
A property's appraised value is determined by a professional real estate appraiser. As opposed to this, buyers determine a property's market value by paying whatever price they are willing to pay for it. An offer is subject to a contingency if a certain condition is not met. To put it another way, it functions similarly to a safety net. If the appraised value of the property is lower than the purchase price, the buyer can back out of the contract and keep the down payment. The home's true market worth is established through an appraisal.
To know more about Appraised Value refer to:
brainly.com/question/27939636
#SPJ4