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ahrayia [7]
3 years ago
11

Find the convexity of a seven-year maturity, 6% coupon bond selling at a yield to maturity of 8%. The bond pays its coupons annu

ally. (Do not round intermediate calculations. Round your answer to 4 decimal places.)

Business
1 answer:
Julli [10]3 years ago
6 0

Answer:

convexity = 37.6306

Explanation:

given data:

maturity time = 7 years

yield to maturity (y) = 8% = 0.08

coupon bond = 6%

price= $89.59 ( gotten from the summation of pv(cf) from the table attached below )

t = time

convexity can be found using this formula

= \frac{1}{p(1+y)^2}  *  summation of (t +t^2) * pv(cf)

= \frac{1}{89.59*(1.08)^2} * 3932.310   = 37.6306

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Camellia, a merchandising​ company, has provided the following extracts from their budget for the first quarter of the forthcomi
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Answer:

<em>555 000 US$ </em>

Explanation:

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January  (400,000*25%)=100000                    (400,000-100000)=300,000

February  (600,000*25%)=150,000            (600,000-150,000)=450,000

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8 0
3 years ago
Given the following balance sheet and income statement data for the year ended December 31, what is the final figure for the num
Dennis_Churaev [7]

Answer:

Option (d) is correct.

Explanation:

Given that,

Cash = $300,000

Short-term investments = 400,000

Accounts receivable = 900,000

Total operating expenses = 640,000

Depreciation expense = 140,000

The numerator part in the formula of days' cash on hand is cash and cash equivalents available.

Cash and cash equivalents available:

= Cash + Short term investments

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8 0
3 years ago
Suppose your roommate just invented an electronic pencil that senses when a word being written is misspelled, beeps, and shows t
irakobra [83]

The need that the electronic pencil fill is the need to erase errors associated with what has been written down digitally.

<h3>What is the potential market for the product?</h3>

The potential market  for electronic pencil is the global digital pen market and the global market as a whole.

<h3>What type of consumer good is electronic pencil product?</h3>

The type of consumer good  of electronic pencil product is Specialty products.

<h3> How will you distribute the product?</h3>

One can distribute the product via online platforms such as social media, online stores and marketplace, etc.

<h3> What are the other questions that need to be answered before a decision is made?</h3>
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7 0
2 years ago
Parsons Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Last
arsen [322]

Answer:

option (C) 32,750 hours

Explanation:

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The correct answer is option (C) 32,750 hours

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