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melamori03 [73]
3 years ago
13

A bond with duration of 10 years has yield to maturity of 10%. this bond's volatility is:

Business
1 answer:
asambeis [7]3 years ago
4 0
Given: 
Duration = 10 years
 Yield to maturity = 10%  
To find: Bond volatility. 
 Solution: 
 Volatility (in percentage) = Duration / (1+yield) 
 Now putting values in the formula,
 10 / (1+10%) 
 10/ (1+10/100)
 10/(1+0.1)
 10/1.1 = 9.09%
  So, bond volatility is 9.09%.

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Answer:

In addition to the explicit costs and revenues used by accountants, economists include all implicit costs and revenues when calculating profit. This means that they include opportunity costs and changes in the value of any assets owned by the firm.

Explanation:

accounting profit = total revenues - total explicit costs

  • explicit costs include all the actual measurable expenses like manufacturing costs, selling costs, etc.

economic profit = accounting profit - opportunity (implicit) costs

  • opportunity or implicit costs are extra costs incurred or benefits lost from choosing one activity or investment instead of another one
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3 years ago
The financial planning life cycle divides an individual's life into three stages. In stage 2, the focus of individual financial
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Answer:process of preserving and increasing the wealth

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Financial planning cycle outlines to us how one goes about starting to build wealthy,through their lifetime and how are they able to actual preserver what the have accumulated while they keep accumulating more.

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3 years ago
When valuing a stock using the constant-growth model, d1 represents the?
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When valuing a stock using the constant-growth model, D1 represents the next expected annual dividend. The constant-growth model is formally known as the Gordon Growth Model. This model shows the intrinsic value of stock based on dividends in the future if they are growing at a constant rate. Instrinsic value is the value of something based on anaylsis without accounting for the market value.

3 0
3 years ago
When Coca-Cola purchased first a part and then all of Honest Tea, what would have been appropriate ways to help this change be s
tensa zangetsu [6.8K]

Answer:

The most applicable choices in the order of importance are

C, B then A. Of course, they have to be applied at various stages of the acquisition.

Explanation:

C should have occurred (if possible) before the acquisition. Usually, when there is a major acquisition such as the one described above, it comes with good and bad tidings.

In some cases, especially one involving a large and efficient system like Coca-Cola, many positions become redundant.

In other cases, people are worried if their compensation will be affected. There are usually questions such as:

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Thus, executing a survey of Honest Teas' employees to identify such sources of anxiety and conflict related to the acquisition with the goal to address them constructively, will help the change to be successful.

Option B is one strategy that ought to have been executed upon the conclusion and official announcement of the acquisition exercise. This is the most crucial and maybe the most important part of the acquisition/takeover process.

This is true especially if there is going to be changes in management,  communication styles, and the culture.  Other benefits of team building excercises are, it increases and or improves:

  • Productivity
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Option C: On the balance of probability, it is expected that when a bigger company like Coca-Cola acquires a smaller one, the process comes with a lot of benefits. One of such benefits is the payroll upgrade.

After all is said and done, it will serve to boost the motivation and morale of the staff if Honest Tea began to use Coca-Cola's payroll which is likely to be more robust.

Because Cocal-cola is an older, more experience and more global company, it is more likely to have more efficient reimbursement systems. If these are inculcated into the Honest Tea process, with adequate training on how to use it, it will also serve to ensure homogeneity of systems and operations which is critical to the success of an acquisition.

Cheers!

3 0
3 years ago
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Answer:

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There are two sections in the trial balance, called columns of debits and columns of credits. The total columns of debit and credit should always correlate or matched. The debit columns report assets and expenditures side while revenues stockholder equity, and the liability side are reported in the credit column.

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