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Liula [17]
3 years ago
14

Find the duration of a bond with a settlement date of May 27, 2020, and maturity date November 15, 2031. The coupon rate of the

bond is 5.5%, and the bond pays coupons semiannually. The bond is selling at a bond-equivalent yield to maturity of 6.0%. Use Spreadsheet 16.2. (Do not round intermediate calculations. Round your answers to 4 decimal places.)
Business
1 answer:
andre [41]3 years ago
5 0

Answer:

Explanation:

Duration is used to determine a bond's price sensitivity to interest rate changes. For fixed rate bonds, an increase in market interest rates leads to a decrease in the price of a bond. On the other hand, a decrease in market interest rates leads to an increase in the price of a bond. The longer the duration, the greater the swings in a bond price for a given change in interest rates. There are various types of duration. Two well-known types used for straight bonds (i.e., bonds without embedded options) are Macauley Duration and Modified Duration. Macauley duration is the weighted average of the time until cash flow dates, where the weights are given by the fraction of the present value arising from that period's cash flow. Modified Duration is derived from Macauley Duration.

Answer and Explanation:

The formula used to calculate Macauley Duration is shown below:

{eq}Duration = t_1 * \frac{c * d(t_1)}{PV} + t_2 * \frac{c * d(t_2)}{PV} + ...

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anygoal [31]

Answer:

6 hours

Explanation:

E(s)= 500+12e-e²

dE/de= 12-2e

0 = 12-2e

e=6

A total of 6 hours will maximize surplus

5 0
3 years ago
Brown Office Supplies recently reported $15,500 of sales, $8,250 of operating costs other than depreciation, and $1,750 of depre
zhenek [66]

Answer:

$630

Explanation:

The computation of the firm's interest expense is

= Outstanding bonds × rate of interest

= $9,000 × 7%

= $630

For computing the interest expense, we multiplied the outstanding bond with the interest rate so that the accurate amount could come

This is the answer but the same is not provided in the given options          

6 0
2 years ago
During an interview, _______________questions require you to use your own experiences and attributes to craft answers and often
Dima020 [189]

Answer:

Behavioral questions

Explanation:

The answer to this question is behavioral questions. Also known as Behavioral interviewing, the focus of this kind or stage of interview is to know the experience of the candidate that is being interviewed. Speaking of experiences certain informations are required here, like;

Asking the candidate to tell how they have shown certain behaviors, abilities, skills and also knowledge. And also to answer questions on basic workplace scenarios concerning areas such as conflict resolution, leadership, mistakes, job commitment, e.t.c

6 0
3 years ago
Jason Graham's startup, which is in the electronics industry, was launched on January 1, 2009. However, prior to its formal laun
Bas_tet [7]

Answer:

C) sweat equity

Explanation:

The definitions ok sweat equity are:

1. Increase in the value of a business (beyond the money invested) created by the unpaid mental and / or physical work of the founder / owner.

2. Increase in the value of a property (beyond its purchase price) created by the hard work of the owner / occupant in improving its comforts and / or appearance.

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8 0
3 years ago
Read 2 more answers
Mountain Dental Services is a specialized dental practice whose only service is filling cavities. Mountain has recorded the foll
Phantasy [73]

Answer:

The fixed cost, variable cost per unit and the total cost is $3,800, $4 per unit ,and $6,000 respectively

Explanation:

1. The computation of the variable cost per unit is shown below:

= (High total cost -  low total cost) ÷ (High number of cavities - low number of cavities)

= ($6,500 - $5,200) ÷ (675 - 350)

= $1,300 ÷ 325

= $4

2. The computation of the fixed cost is shown below:

Fixed cost  = total cost -  Variable cost

                  = $6,500 - (675 × $4)

                  =  $6,500 - $2,700

                  = $3,800

3. And, the total cost for 550 cavities would be equal to

= Fixed cost + variable cost

= $3,800 + (550 cavities × $4)

=  $3,800 + $2,200)

=  $6,000

3 0
2 years ago
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