Answer:
As a result of an increase in the YTM, the price of the bond will fall $4677.19 from to $4593.67
Explanation:
The bonds are valued or priced based on the present value of annuity of interest payments and the present value of the principal. Based on the YTM of 7.8% the bonds are priced at,
coupon payment = 5000 * 0.067 *1/2 = $167.5
Semiannual YTM = 7.8 *0.5 = 3.9%
Semi annual periods to maturity = 8 * 2 = 16 periods
Old Price = 167.5 * [( 1 - (1 + 0.039)^-16 + 5000 / (1+0.039)^16
Old Price = $4677.19
New semiannual YTM = 8.1% / 2 = 4.05%
New Price = 167.5 * [( 1 - (1+0.0405)^-16) / 0.0405] + 5000 / 1.0405^16
New Price = $4593.67
Here is the answer that completes the statement above.
Regarding the situation of Toby who runs a small deli downtown, if he is already maximizing his profits, therefore, we can say that the number or amount of delis will soon increase or rise. Hope this answers your question.
Answer: $126,613
Explanation:
Net Present value of Project A is:
= Present value of $50,000 annuity + Present value of residual value - Initial investment
Present value of $50,000 annuity:
= 50,000 * ( 1 - ( 1 + rate)^-number of periods) / rate
= 50,000 * ( 1 - ( 1 + 12%) ⁻⁸) / 12%
= $248,382
Present value of residual value:
= 8,000 / ( 1 + 12%)⁸
= $3,231
Net present value
= 248,382 + 3,231 - 125,000
= $126,613
The monetary base is a liability, whereas Treasury notes are assets.
tables that represent the financial position of the federal reserve and commercial banks after this open-market operation:
A $ 300, B $ 300, C $ -300, D $ 300
a negative sign use for reduced values.
<h3>What do we mean by asset?</h3>
A resource having economic worth that a person, business, or nation owns or manages with the hope that it will someday be useful is referred to as an asset. A company's balance sheet lists assets. They are acquired or produced to raise a company's value or improve the operations of the company. Physical commodities like equipment, real estate, raw materials, and inventories are considered assets. Intangible objects like patents, royalties, and other forms of intellectual property are also considered assets.
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