1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
The profit-maximizing perfectly competitive firm charges a price equal to __________ while the profit-maximizing monopolistic co
Karo-lina-s [1.5K]

Answer:

An apple, potato, and onion all taste the same if you eat them with your nose plugged fun fact btwwwww

Explanation:

8 0
3 years ago
Al invested $7,200 in an account that pays 4 percent simple interest. how much money will he have at the end of five years?
Gre4nikov [31]
Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.
Below are the choices that can be found form other sources:

A. $8,710
B. $8,056
C. $8,640
D. $8,678
E. <span>$8,299
</span>
The amount of money  will he have at the end of five years is C $8,640
4 0
3 years ago
The Davis family grows organic vegetables to sell at a local farmer’s market. Which are factors that directly affect their profi
GenaCL600 [577]
The Davis family grows organic vegetables to sell at a local farmer’s market. Which are factors that directly affect their profit?

Answer: Since there are no options to select from I will mention the most important key factors that should be taken into consideration when you are growing organic vegetables. The field site selection is one. Field topography and finally management of soil in selection and quantity.

I hope it helps, Regards.
4 0
3 years ago
Read 2 more answers
Many in the advertising industry are calling for a new way to measure a commercial’s effectiveness, _____________, an accountabi
Vsevolod [243]

ROI is the answer to this question. ROI or Return of Investment is when the capital is now gained back and the business computes the amount of profit during the time the investment was returned. Return of investment is computed by dividing the benefit of investment over the cost of investment. 

6 0
4 years ago
The purchaser of a tbond futures contract priced at 101-16 at the time of the sale agrees to deleiever 100,000 facevalue treasur
jek_recluse [69]

Answer:

The answer is "True".

Explanation:

Please find the complete question in the attached file.

It implies that its price of the bond is 101-16, which is to say

\to 101 + \frac{16}{32}\\\\\to  \frac{3232+ 16}{32} \\\\\to  \frac{3248}{32} \\\\\to 101.5

Each bond is thus stated as 101.5 \% face value

\to 101.5\% \times 100,000 \\\\\to 101,500.00

That's why this statement is true.

5 0
3 years ago
Other questions:
  • According to the U.S. Public Health Service, which of the following would be considered a significant financial interest?
    5·1 answer
  • Mirage Inc., a management consulting firm, has experienced an expansion in its profit in the last four quarters. It plans to hir
    15·1 answer
  • The ability to produce more output at a lower opportunity cost than other producers is A. absolute advantage. B. comparative adv
    14·1 answer
  • Company X got a loan of e4,000,000. The company agreed repay this loan as follows: a first payment of e2,400,000 one year from n
    10·1 answer
  • In an Apple market-product grid for its personal computer line, the professional segment of medium/large businesses seems willin
    11·1 answer
  • Which of the following statements is true about profits in a monopolistically competitive market? A. Most firms will earn substa
    13·1 answer
  • From an economic perspective, when consumers leave a fast-food restaurant because the lines to be served are too long, they have
    15·1 answer
  • In developing its future strategy, CVS is focusing on Amazon, which is expanding into the healthcare business. What stage of the
    7·1 answer
  • Which is NOT a reason companies integrate horizontally?
    13·1 answer
  • In the interest formulas, a simple interest can be used in any of the single payment formulas as long as the 'n values correspon
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!