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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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Cosmo has just made his dream come true of buying the property that his restaurant occupies. His excitement is short lived, howe
forsale [732]

Answer:

Realistic aspect

Explanation:

Considering the scenario described in the question it can be concluded that Cosmo shifted his focus onto which REALISTIC aspect of goal-setting theory.

This is because following Cosmo making his dream come true of buying the property that his restaurant occupies, the idea that he could rent out the storefront next to the restaurant for added income is a REALISTIC Aspect of Goal Getting.

This implies that Cosmo is more realistic in terms of his financial abilities and willingness to work toward the goal of paying off the mortgage loan

7 0
3 years ago
Use the ethical tools from the readings to discuss the ramifications of electronic medical records. Suppose that there was a nat
ladessa [460]

Answer and Explanation:

1) EHR System which helps in capturing the functionalities and and check for required informations

2) Online Tool for notifying the doctor about the status pf the patient

3) Interactive health records

4) Computerized physician entry of orders (CPOE)

Benefits of centralized system are as follows:

1) IT gives a lower hardware expense

2) Improves the productivity of the IT Staff

3) Enhances the purchasing power

4) Meets the industry regulations

5) Information flow is properly maintained.

The cost of the system would be with respect to the tools to be used and the broadness of the network.

5 0
3 years ago
People who agreed with the argument made in the speech would most likely have recommended which of the following solutions? Sepa
Lostsunrise [7]

Answer:

A stronger government role in the economic system.

Explanation:

A stronger government role in the economic system will enable the increase of job opportunities for white workers. The government will intervene in the organizations and persuade them to hire and provide work to white workers perhaps a quota can be established or a general advice to all the organizations to increase the job opportunities for the white workers.

8 0
3 years ago
A business owner makes 1000 items a day. Each day she spends 8 hours producing those items. If hired, elsewhere she could have e
lyudmila [28]

Answer:

Economic profit= $214,000

Explanation:

Giving the following information:

Business:

Units= 28,000 a month

Hours= 224 hours

Total cost= 150,000 a month

Selling price per unit= $15

Other work:

Income= $250 an hour

E<u>conomic profit includes the opportunity cost.</u>

Economic profit= 28,000*15 - 150,000 - 250*224

Economic profit= $214,000

5 0
3 years ago
Which of the following is a false statement?
astraxan [27]

D) All states have a flat state tax.

8 0
3 years ago
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