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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

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Answer:

top down management

Explanation:

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2 years ago
An analyst asked to perform a TCO analysis for a system would need to take into account
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3 years ago
______ effect happens when the place a product was manufactured influences how consumers perceive the product.
stiks02 [169]

Effect happens when the place a product was manufactured influences how consumers perceive the product.  Country of Origin

What benefits do consumer product firms derive by marketing internationally?

Competition with other companies can be maintained. Sales and profits can be enhanced. Life cycles of products can be extended.

Country of origin:

Country of origin represents the country or countries of manufacture, production, design, or brand origin where an article or product comes from. For multinational brands, CO may include multiple countries within the value-creation process.

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2 years ago
The following data were reported by a corporation: 20,000 15,000 3,000the number of outstanding shares is:
7nadin3 [17]

Outstanding shares will be 12,000 shares.

These are calculated as follows:

Here the number of shares are as follows;

Authorized shares are 20,000, Issued shares are 15,000, Treasury shares are 3,000

Therefore, the number of outstanding shares can be calculated as follows

Number of outstanding shares = Issued stock- Treasury stock

= 15,000-3,000

= 12,000

Hence the number of outstanding shares is 12,000

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8 0
1 year ago
Ranch Company estimates warranty expense as 5% of sales. On January 1, warranties payable was $13,000. During the year Ranch pai
Yuki888 [10]

Answer:

$13,000

Explanation:

The computation of the december 31 liability for the warranty is shown below:

Given that

Warranty expense = 5% of sales

Warranty payable = $13,000

Paid amount = $5,000

Sales = $120,000

based on the above information

The warranty liability as on Dec 31 would be equivalent to the warranty payable i.e. $13,000

The same is to be considered

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3 years ago
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