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allsm [11]
3 years ago
5

On January 1, year 1, Ziegler issued 5-year bonds with a stated rate of 8% and a face amount of $100,000. The bonds pay interest

semiannually. The market rate of interest was 10%. Calculate the issue price of the bonds. Round your answer to the nearest dollar. $92,278
Business
1 answer:
steposvetlana [31]3 years ago
5 0

Answer:

$92,278

Explanation:

Annual coupon = $100,000 × 8% = $8,000

Annual coupon discount factor = ((1-(1/(1 + r))^n)/r)

Where;

r = semi-annul interest rate = 10%/2 = 5%, 0.05

n = number of period = 5 × 2 = 10 semi-annuals

Annual coupon discount factor = ((1-(1/(1.05))^10)/0.05) = 7.72173492918482

PV of coupon = $8,000 × 7.72173492918482 × 0.5 = $30,886.94

PV of the face value of the bond = 100,000 ÷ (1 + 0.05)^10 = $61,391.33

Therefore, we have:

Price of bond = $30,886.94 + $61,391.33 = $92,278

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According to a 2018 article in Esquire magazine, approximately 70% of males over age will develop cancerous cells in their prost
yaroslaw [1]

Answer:

a) Probability of prostrate cancer given a positive test is P(C|+) = 0.0213

b) Probability of cancer given a negative test is P(C|-) = 0.0161

c) Probability of prostrate cancer given a positive test is P(C|+) = 0.3137

d) Probability of cancer given a negative test is P(C|-) = 0.2553

Explanation:

Probability male patient has prostate cancer, P(C) = 0.02

Probability male patient does not have prostrate cancer P(C') = 1 - 0.02 = 0.98

Probability of a positive test given there is no cancer, i.e. P(false positive) = P(+|C') = 0.75

P(negative test given there is cancer) = P(false negative) = P(-|C) = 0.2

P(negative test given there is no cancer) is the complement of P(+|C') = P(-|C') = 1 - 0.75 = 0.25

Probability of positive test given there is prostrate cancer, P(+|C) is the complement of P(-|C), = 1 - 0.2 = 0.8.

a) Probability of prostrate cancer given a positive test is P(C|+)

According to Baye's theorem, P(C|+) = P(+|C)P(C)/P(+)

For P(+), we use the Law Of Total Probability: P(+) = P(+|C)P(C) + P(+|C')P(C')

P(+) = (0.8 * 0.02) + (0.75 * 0.98) = 0.751

Therefore, P(C|+) = P(+|C)P(C)/P(+)

P(C|+) = (0.8 * 0.02)/0.751 = 0.0213

b) Probability of cancer given a negative test is P(C|-)

According to Baye's theorem, P(C|-) = P(-|C)P(C)/P(-)

P(-) = P(-|C)P(C) + P(-|C')P(C')

P(-) = (0.2 * 0.02) + (0.25 * 0.98) = 0.249

Therefore, P(C|-) = (0.2 * 0.02)/0.249

P(C|-) = 0.0161

Part 2: Given the following;

Probability male patient has prostate cancer, P(C) = 0.3

Probability male patient does not have prostrate cancer P(C') = 1 - 0.3 = 0.70

Probability of a positive test given there is no cancer, i.e. P(false positive) = P(+|C') = = 0.75

P(negative test given there is cancer) = P(false negative) = P(-|C) = 0.2

P(negative test given there is no cancer) is the complement of P(+|C') = P(-|C') = 1 - 0.75 = 0.25

Probability of positive test given there is prostrate cancer, P(+|C) is the complement of P(-|C), = 1 - 0.2 = 0.8.

c) Probability of prostrate cancer given a positive test is P(C|+)

According to Baye's theorem, P(C|+) = P(+|C)P(C)/P(+)

For P(+), we use the Law Of Total Probability: P(+) = P(+|C)P(C) + P(+|C')P(C')

P(+) = (0.8 * 0.3) + (0.75 * 0.7) = 0.751

Therefore, P(C|+) = P(+|C)P(C)/P(+)

P(C|+) = (0.8 * 0.3)/0.765 = 0.3137

d) Probability of cancer given a negative test is P(C|-)

According to Baye's theorem, P(C|-) = P(-|C)P(C)/P(-)

P(-) = P(-|C)P(C) + P(-|C')P(C')

P(-) = (0.2 * 0.3) + (0.25 * 0.7) = 0.235

Therefore, P(C|-) = (0.2 * 0.3)/0.235

P(C|-) = 0.2553

4 0
3 years ago
What a major economic decision that each society has to think about and decide upon
lapo4ka [179]

Society must choose what to produce based on its needs. Because we live in a world of relatively scarce resources, we have to make wise economic decisions.

I hope this helps a lil

8 0
3 years ago
An investor wishes to construct a portfolio consisting of a 70% allocation to a stock index and a 30% allocation to a risk free
Rzqust [24]

Answer:

9.75%

4.2%

Explanation:

Given:

Stock index portfolio = 70% = 70/100 = 0.70

Risk free asset = 30% = 30/100 = 0.30

Return on the risk-free asset = 4.5% = 4.5/100 = 0.045

Return on the stock index = 12% = 12/100 = 0.12

Standard deviation (Return on the stock index) = 6% = 6/100 = 0.06

Computation of expected return on the portfolio:

Expected return = [Risk free asset × Return on the risk-free asset ] + [Stock index portfolio × Return on the stock index ]

= [0.3 × 4.5] + [0.7 × 12]

= [1.35 + 8.4]

= 9.75%

Computation of expected standard deviation of the portfolio:

Expected standard deviation = [Stock index portfolio × Standard deviation (Return on the stock index)]

= 0.7× 6

= 4.2%

7 0
3 years ago
Billy finds Anne's work on the new project subpar. Which of these situations is considered constructive criticism of her work?
Marta_Voda [28]
The correct answer would be second choice - <span>Billy gives reasonable opinions of Anne's work and offers suggestions to improve.

As you can see, Billy gave both his opinions, and the suggestions he thinks will help her improve. </span><span>
</span>
5 0
3 years ago
Lands' End orders blazers that it has been selling for the last 20 years in misses sizes, but in a new fabric and in new larger
alexira [117]

Answer:

New buy

Explanation:

Based on the information given NEW BUY occur in a situation where a person or an individual order a brand new products that has already been selling for a long period of time in which the new product that is been ordered must be different from the one that was already in existence before now and the new products will have to be produce with a new material which will as well include brand new different design as well a different size just as in the case of Lands' End .

Therefore This would more than likely be an example of a: NEW BUY

4 0
3 years ago
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