1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
fomenos
1 year ago
14

assume that the price of a $1,000 zero-coupon bond with five years to maturity is $567 when the required rate of return is 12 pe

rcent. if the required rate of return suddenly changes to 15 percent, what is the price elasticity of the bond?
Business
1 answer:
Gelneren [198K]1 year ago
3 0

The price elasticity of the bond, based on the years to maturity and the required rate of return is -0.494

<h3>How to find the price elasticity of he bond?</h3><h3 />

First, find the new price of the bond:
= 1, 000 / ( 1 + 15%)⁵

= $497

The change in price:

= (497 - 567) / 567

= -12.3%

Then find the percentage change in the required rate of return:

= (15 - 12%) / 12

= 25%

The price elasticity of the bond is:

= -12.3% / 25%

= -0.494

Find out more on price elasticity at brainly.com/question/5078326

#SPJ1

You might be interested in
When performing the managerial task of planning, managers organize people into departments according to the kinds of job-specifi
Shkiper50 [21]

Answer:

decide which goals the organization will pursue and what strategies will achieve those goals.

Explanation:

To perform the planning task, managers identify and select appropriate organizational goals and courses of action; they develop strategies for how to achieve high performance. The three steps involved in the planning area

(1) deciding which goals the organization will pursue,

(2) deciding what strategies to adopt to attain those goals, and

(3) deciding how to allocate organizational resources to pursue the strategies that attain those goals. How well managers plan and develop strategies determines how effective and efficient the organization is—its performance level.

5 0
3 years ago
The total number of points of work a team can accomplish in each scrum period is called? ________.
sasho [114]
Hey there!

The correct answer to your question is "velocity."

The total number of points of work a team can accomplish in each scrum period is called velocity.
Velocity is basically the rate of points you can receive in each course of working.

I hope this helps you.

Have a great day! :)
3 0
4 years ago
Read 2 more answers
Which following statement about FAFSA process are TRUE?
aleksklad [387]
FAFSA stands for Free Application for Federal Student Aid. It is a form that can be prepared annually by current and prospective college students  in the United States to determine their eligibility for student financial aid. Hope this helps.
3 0
3 years ago
The Boxwood Company sells blankets for $ 32.00 each. The following was taken from the inventory records during May. The company
nika2105 [10]

Answer:

(C) $94.00

Explanation:

The computation of the cost of goods sold for the sale of May 20 is shown below:

= Remaining units × cost price + remaining units × cost price

= 4 units × $15 + 2 units × $17

= $60 + $34

= $94

The 4 units come from May 1 and May 10 i.e 9 units - 5 units = 4 units

And on May 20, the 6 units were sold out of which 4 units were sold at price of $15 and rest 2 units were sold at a price of $17

8 0
3 years ago
What voting system is preferred by voting rights activists as a means of increasing minority representation?
Paha777 [63]

Answer:

Cumulative voting

Explanation:

Cumulative voting - in this type of voting system sole right is given to shareholder who is in minority to elect their director. this system permit shareholder to cast all their vote for any single nominee for board of directors.

while in  regular voting system no permission is granted to anyone to cast more than one vote.

example - for four member and 500 holding share , maximum vote than can cast is 500 (one vote for one share)  in normal voting but in  cumulative maximum that can cast is 2000 votes

8 0
3 years ago
Other questions:
  • During the current year, Martinez Company disposed of two different assets. On January 1, prior to their disposal, the accounts
    5·1 answer
  • On January 1, a company issues bonds dated January 1 with a par value of $310,000. The bonds mature in 5 years. The contract rat
    8·1 answer
  • Which of the following government offices help individuals fund their college education?
    11·2 answers
  • A marketing manager wants to build a strong relationship with the customers and to customize messages without high costs. He und
    7·1 answer
  • Explain why a cinder cone volcano has steep sides
    5·1 answer
  • Mike, an attorney, earns $200,000 from his law practice and receives $45,000 in dividends and interest during the year. In addit
    7·1 answer
  • Barnett Corporation uses the weighted-average method in its process costing system. The
    13·1 answer
  • Limitations of managerial economics
    5·1 answer
  • White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermin
    9·1 answer
  • Organizational structure refers to formalized patterns of interactions linking Tasks, Technologies and Processes
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!