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otez555 [7]
3 years ago
6

The Penn Railways has a 7-year, 6.5 percent semiannual coupon bond outstanding with a $1,000 par value. The bond has a yield to

maturity of 5.5 percent. What will happen to the bond price if the market yield suddenly increases to 7 percent?
Business
1 answer:
Nuetrik [128]3 years ago
3 0

Answer:

The increase in yield to maturity from 5.5% to 7% will cause the price of the bond to fall from $ 1,057.46  to $ 972.70  

Explanation:

In order to ascertain the impact on the bond of a sudden increase in the yield to maturity from 5.5% to 7%, the present value of the bond, the current price is computed using yield of maturity of 5.5% and 7% respectively.

In calculating the present value, a discounting factor is used to state today's value of the future cash flows from the bond, given as 1/(1+r)^N, where r is the yield to maturity divided by 2 , in order to show that the bond is a semi-annual  interest paying bond.The fact that the bond is a semiannual one means interest would be paid 14 times( 7 years *2)

The present value is computed in the attached.

Download xlsx
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If the price of output falls from $5 to $2, the value of the marginal product of labor of all workers:
kicyunya [14]

When price declines, the value of marginal product of labor of all workers decreases.

Marginal product of labor is the change in output when labor employed in changed by one unit. For example, if total output of labor is 10 units when only one unit of labor is employed and 20 when two units of labour is employed. Price is $1. The marginal product of labor is $10 $1(20 - 10).

An increase in the price of output increases the marginal product of labor and a decline in the price of output decreases the marginal product of labor.

Please find attached the complete question. To learn more about the marginal product of labor, please check: brainly.com/question/17009411

3 0
2 years ago
The calculation for annual depreciation using the units-of-output method is:________
Elza [17]

Answer:

d. (Depreciable cost Estimated output) × Actual yearly output

Explanation:

<em>Units of Output depreciation = Cost - Residual Value × Period`s Production / Total Expected Production.</em>

Note : Depreciation is dependable on depreciable cost (Cost less Residual Value)

The Option that is close to this formula is d.

5 0
3 years ago
International data show a positive correlation between income per person and the health of the population.
Y_Kistochka [10]

Answer:

True

Explanation:

In the case when the person income is high so he have an opportunity to have a good food, healthy environment, health care, etc this represents that the higher income defines the good health and if a person is healthy so he would work in efficient way as compared with the sick person

Therefore the given statement is true

3 0
3 years ago
As a new employee at acme global, frederick just spent the morning learning about the organization's policies and procedures. He
jeka94

I believe the answer is: orientation

In business setting, orientation refers to the process of familiarizing oneself to company's culture and operation. Conducting orientation as new recruits would speed up your adaptation process, make it more easier for your coworkers and bosses to accept you, and ensure that you are not left behind in term of expected performance.

4 0
3 years ago
In 2018​, Gathering Company repurchased its own stock at a cost of $ 48,000. During the​ year, the company purchased land with c
Bezzdna [24]

Answer:

$327,000

Explanation:

Stocks owned by the Gathering Company after repurchasing = $48,000

Cash paid for the purchase of land = $124,000

Amount of issued bonds payable =  $375,000

Now,

Net cash provided by financing activities for the year would have been

= Amount of issued bonds payable - Stocks owned by the Gathering Company

= $375,000 - $48,000

= $327,000

7 0
3 years ago
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