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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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In November 2016, General Motors produced a car that was delivered to a local dealership in December 2016. The auto was sold to
horsena [70]

Answer:

It will be counted as investment in 2016 and negative investment in 2017.

Explanation:

National income refers to the total value of a country's final output of all new goods and services produced in one year. There are various ways of measuring national income, e.g. GDP, GNP, etc

Therefore, following national income accounting practices, the car would be counted as part of the investments and GDP of 2016, and negative investment in 2017, because that was the year in which it was produced.

4 0
3 years ago
Using the following national income accounting data, compute (a) GDP, (b) NDP, and (c) NI. All figures are in billions.Category
Ymorist [56]

Answer:

a. $343.7 billion

b.  $331.9 billion

c. $334.1 billion

Explanation:

The computation is shown below:

a. For GDP

GDP = Personal consumption expenditures + Government purchases + Net private domestic investment + Consumption of fixed capital + net exports

where,

Net exports = U.S. exports of goods and services - U.S. imports of goods and services

= $17.8 - $16.5

= $1.3 billion

So, the GDP would be

= $219.1 + $59.4 + $52.1 + $11.8 + $1.3

= $343.7 billion

b. For NDP

NDP = GDP - Consumption of fixed capital or depreciation

        = $343.7 - $11.8

        = $331.9 billion

c. For NI

NI = GDP + Net foreign income

    = $331.9 billion + 2.2 billion

    = $334.1 billion

All values are in billions

         

5 0
3 years ago
Through which method of involuntary alienation may the government take private land for public use?
Oduvanchick [21]

<u>Eminent domain</u><u> is the </u><u>governments</u><u>' power to take private land for public use.</u>

Which of the following is an involuntary alienation of property?

  • Involuntary Alienation. Involuntary alienation is the transfer of real estate by law and without the owner's consent.
  • There are 4 methods by which this is accomplished: foreclosure, eminent domain, adverse possession, and by escheat.

Which of the following is an involuntary alienation of property?

A grantor does not wish to be responsible for defects in the title that arise from previous owners but will guarantee the title for the time the grantor has the ownership.

What is involuntary alienation ?

Involuntary Alienation. Involuntary alienation is the transfer of ownership without consent and control of the owner.

Learn more about Involuntary Alienation

brainly.com/question/14675036

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8 0
1 year ago
Operating profit is essentially a measure of how efficient management is in generating revenues and controlling expenses. True F
Paul [167]

Answer:

true

Explanation:

Operating profit is referred to as the profit gained by the corporation in business. it is calculated by subtracting all expenses from the total profit over the given period.

it is considered to be the best way to determine how management tactics are helpful or beneficial for the organization. it helps to decide on the working policy for future goals.

3 0
3 years ago
Comparing the life of a company president or ceo with a dishwasher or taxi driver shows us glaring examples of ______.
Ksenya-84 [330]

Comparing the life of a company president or ceo with a dishwasher or taxi driver shows us glaring examples of social inequality.

<h3>What exactly is socioeconomic inequality?</h3>

Social inequality is defined as a scenario in which certain citizens of a country, a region, a section of the world, or both, are disparately or disadvantaged from others who are unfairly privileged. Logically speaking, it is the polar opposite of social equality.

Modern civilizations struggle with social inequality, which is a result of the uneven development of different parts of the world and the imposition of particular ideologies or human value judgments on some people over others. In fact, social inequality is the root of discrimination, which is the practice of treating individuals who are weaker than others in terms of their morals, social standing, or economic standing differently.

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5 0
2 years ago
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