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galben [10]
4 years ago
12

Analysts estimate that a bond has a 40 percent probability of being priced at $950 and a 60 percent probability of being priced

at $1,050 one year from today. The bond is also callable at any time at $1,010. What is the expected value of this bond in one year?
Business
1 answer:
AnnZ [28]4 years ago
8 0

Answer:

Explanation:

40% probability that bond will be priced at $950

60% probability that bond will be priced at $1050

Expected value of the bond in one year:

(Probability*Price of bond) + (Probability * Callable price bond)= (0.4*$950)+(0.60*$1010)=$986

So, expected value is $986

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kozerog [31]
Foreign direct investment
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4 years ago
This morning, you borrowed $12,700 at an APR of 6.9 percent. If you repay the loan in one lump sum four years from today, how mu
Stolb23 [73]

Answer:

In Four years i will be paying $16,585.

Explanation:

In this question apply the time value of money techniques.The amount to be paid after 4 years is known as the Future Value and is determined by setting the parameters as follows:

Pv = $12,700

i = 6.9%

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N = 4

Fv = ?

Using a Financial Calculator, the Fv (Future Value) will be $16,585

Conclusion :

In Four years i will be paying $16,585.

4 0
3 years ago
MTH Bank has given the McKelvey's a written pledge to lend $250,000 on a new construction home, for 30 years, at 6.53%. The McKe
ra1l [238]

Answer:Conditional approval

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8 0
3 years ago
An officer of a company has acquired shares of that issuer in the open market. If the officer wishes to sell the shares:
Brut [27]

Answer: C. II and III

Explanation:

As the shares were acquired by the officer on the open market, they are considered Control Stock. Sale of Control Stock falls under the purview of Rule 144 of the SEC that governs the sale of restricted, unregistered, and control securities so a Form 144 will need to be filed with the Sec making III correct.

Furthermore, control stock are not subject to a holding period requirement so option II is correct as well. Option C is therefore the best answer.

4 0
3 years ago
From President Abraham Lincoln's perspective, the decision to wage a civil war against the southern states is best summarized in
frutty [35]

Answer:

States that allowed slavery were no longer sovereign

Explanation:

cu Abraham believed that they were all human beings and should be free in america

5 0
3 years ago
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