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horsena [70]
3 years ago
6

At one point, certain U.S. Treasury bonds were callable. Consider the prices in the following three Treasury issues as of May 15

, 2017: 05/15/2020 6.50 108.71875 108.78125 − .31250 3.400 05/15/2020 7.55 109.25000 109.31250 − .09375 4.210 05/15/2020 8.05 114.31250 114.50000 − .46875 2.960 The bond in the middle is callable in February 2018. What is the implied value of the call feature? Assume a par value of $1,000. (Hint: Is there a way to combine the two noncallable issues to create an issue that has the same coupon as the callable bond?) (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Business
1 answer:
TEA [102]3 years ago
8 0

Answer:

The implied value of called feature is $111.49 approx

Explanation:

Detailed step wise solution is given below:

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What caused the unintended consequence of "there's no such thing as shovel-ready projects?"
Misha Larkins [42]

Answer:

A)  Any of these causes could be a reasonable answer.

Explanation:

When the government needs to spend money on service projects or products, there are many roadblocks in the way.

1. The US House has the "power of the purse," because All Bills for raising Revenue shall originate in the House of Representatives (U.S. Constitution, Art. I, sect. 7)

2. Most State Governments have to approve contracts and vet private industries to complete public works projects.

3. Like all business structures,all of the factors of production need to be in place before work can begin.

4 0
4 years ago
Etmer enterprises has budgeted sales for the next four months as follows: budgeted sales in units january 7,400 units february 4
Artyom0805 [142]

Units to be produced in February is calculated as -

Units to be produced in February = February sales + Ending inventory of February - Beginning inventory

February sales = 4,600 units

Ending inventory = 25 % * Sales of March = 25 % * 5,300 units = 1,325 units

Beginning inventory - 25 % * Sales of February = 25 % * 4,600 unit = 1,150 units

Units to be produced in February = 4,600 units + 1,325 units - 1,150 units

Units to be produced in February = 4,775 units

8 0
3 years ago
Gravity location models in supply chain meaning ?
Andru [333]

Answer:

Gravity models are used to find location that minimizes the cost of transporting raw material from the supplier and finished goods to the markets served. This model also assumes that the transportation cost grows linearly with the quantity shipped.

Explanation:

hope it will helpful

good morning ❤️

4 0
3 years ago
A client sks his accountant to ignore a mistake which overstated the accounts receivable account. The accountant decides that th
ioda

Answer:

C. Stage 4

Explanation:

stage 4 – respecting authority and preserving the rules of society.

                 authority and social order obedience driven.

7 0
3 years ago
To make a batch of 800 units, it is estimated that 120 direct labor hours are required at a cost of $12 per hour. Direct materia
Anna [14]

Answer:

It is more convenient to buy the product from an outsource supplier.

Explanation:

Giving the following information:

To make a batch of 800 units, it is estimated that 120 direct labor hours are required for $12 per hour. Direct material costs are estimated at $1,800 per batch. The overhead costs are calculated based on an overhead rate of $7.50 per direct labor hour. The item can be readily purchased from a local vendor for $5 per unit.

We need to determine whether it is more convenient to make in house or outsource.

Make in house:

Total variable cost= 120*12 + 1,800 + 120*7.5= $4,140

Unitary variable cost= 4,140/800= $5.18

Buy= 5

It is more convenient to buy the product from an outsource supplier.

6 0
4 years ago
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