Answer:
a) 7% as their market price will adjsut to give the same yield as the market
b) bond P = -10.17
bonds D = 10.07
Explanation:
we have to calcualte the price variation of the bonds from now (10 years to maturity) to next year (9 years)
Bond P
C 90.000
time 10
rate 0.07
PV $632.1223
Maturity 1,000.00
time 10.00
rate 0.07
PV 508.35
PV c $632.1223
PV m $508.3493
Total $1,140.4716
then, at time = 9
C 90.000
time 9
rate 0.07
PV $586.3709
Maturity 1,000.00
time 9.00
rate 0.07
PV 543.93
PV c $586.3709
PV m $543.9337
Total $1,130.3046
Capital loss: 1,130.30 - 1,140.47 = -10.17
We repeat the process for bond D
C 50.000
time 10
rate 0.07
PV $351.1791
Maturity 1,000.00
time 10.00
rate 0.07
PV 508.35
PV c $351.1791
PV m $508.3493
Total $859.5284
C 50.000
time 9
rate 0.07
PV $325.7616
Maturity 1,000.00
time 9.00
rate 0.07
PV 543.93
PV c $325.7616
PV m $543.9337
Total $869.6954
Capital gain: 869.70 - 859.53 = 10.07
Answer:
Liabilities
Explanation:
Liabilities are the debts and obligations that a business owes.
Answer:
B. Liquidation.
Explanation:
Liquidation is and aftermath of the inability of a company or establishment to meet up with her obligations at the required moment. Thus, the company folds-up, lay off her staff and stop operating. While reorganization is a form of restructuring in a company or establishment. It may involve change of positions and duties among capable staff.
The example in the given scenario is that of liquidation because it ceased from operation.
If the number of employed workers equals 200 million and the number of unemployed workers equals 20 million, the unemployment rate equals 9%.
<h3>What is the unemployment rate?</h3>
The unemployment rate is the percentage of the labour force that is unemployed.
The unemployment rate = (number of unemployed people / total labour force) x 100
Total labour force = 200 million + 20 million = 220 million
(20 / 220) x 100 = 9%
To learn more about unemployment, please check: brainly.com/question/10940465
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If a drought ruins a significant amount of the coffee crop,
it is expected that the price of the coffee will rise. It is because if there
are less products or the less it produces, it causes the product to rise
because the product will be of demand by the consumers.