Answer:
Bond Price= $1,128.82
Explanation:
Giving the following information:
Time= 13*2= 26
Cupon= (0.069/2)*1,000= 34.5
YTM= 0.055/2= 0.0275
Par value= $1,000
<u>To calculate the price of the bond, we need to use the following formula:</u>
Bond Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Bond Price= 34.5*{[1 - (1.0275^-26)] / 0.0275} + [1,000/(1.0275^26)]
Bond Price= 634.88 + 493.94
Bond Price= $1,128.82
Answer:
a. $28.5
b. 12.28%
c. $29.18
d. 13.09%
Explanation:
a. let current price = p
p*1.10 = 2(1-0.3)+30
= 1.4+30/1.10
= 31.4/1.10
= 28.5
the current price of the stock is approximately 28.5 dollars
b. (30+2 /28.5)-1
= 32/28.5 - 1
= 0.1228
= 12.28%
expected before tax rate is 12.28%
c. 3(1-0.3)+30 / 1.10
= 3*0.7+30/1.10
= $29.18
d. before tax rate of return
= (3$ + 30-29.18)/29.18
= 0.1309
= 13.09%
it is now higher here given that given that a greater dividend causes more tax burden.
Answer:
public relations
Explanation:
Public relations refers to the process of building relations among the public and the organization. It focuses on constructing relations in the interest of the public by informing them about the new schemes and improvement of the company. It provides the individual to gain exposure and to earn experiences about the public. These relations ignites the sale of the organization and helps in its publicity too.