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zavuch27 [327]
3 years ago
5

The current​ zero-coupon yield curve for​ risk-free bonds is as​ follows: Maturity ​(years) 1 2 3 4 5 YTM 5.05 % 5.49 % 5.78 % 5

.93 % 6.09 % What is the price per $ 100 face value of a​ four-year, zero-coupon,​ risk-free bond?
Business
1 answer:
kondor19780726 [428]3 years ago
7 0

Answer:

The answer is $79.42

Explanation:

Zero-coupon bonds does not make any periodic payments of interest. It pays both the interest and the face value at maturity.

N(Number of periods) = 4 years

I/Y(Yield to maturity) = 5.93 percent

PV(present value or market price) = ?

PMT( coupon payment) = 0

FV( Future value or par value) = $100

We are using a Financial calculator for this.

N= 4; I/Y = 5.93; PMT = 0; FV= $100; CPT PV= -79.42

Therefore, the market price of the bond is $79.42

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You own 400 shares of Stock A at a price of $50 per share, 290 shares of Stock B at $75 per share, and 700 shares of Stock C at
andreev551 [17]

Answer:

0.67

Explanation:

Beta measures the systemic risk of a portfolio

The portfolio's beta can be determined by adding together the weighted beta of each stock in the portfolio

weighed beta of a stock = percentage of the stock in the portfolio x beta of the stock  

total number of stocks in the portfolio 400 + 290 + 700 = 1390

(400 / 1390 x 0.6) + (290 / 1390 x 1.2) + (700 / 1390 x 0.5) =

0.17 + 0.25 + 0.25 = 0.67

7 0
3 years ago
Based on this model, households earn income when (household/firms) purchase (factors/goods and services) in factor markets.
aalyn [17]

The model shows that households earn money when <u>Firms </u>purchase <u>Factors </u>in factor markets.

<h3>Interaction between the Household and a Firm </h3>
  • Households buy goods from firms thereby passing income to firms.
  • Firms buy labor from households.

Households therefore earn an income when firms decide to go to the factor market and buy a factor such as labor from households.

In conclusions, households and firms are interconnected.

Find out more on this interaction at brainly.com/question/1433471.

5 0
3 years ago
Are the signs of the coefficient estimates consistent with expectations? Explain.
kow [346]

The sign of each coefficient indicates the direction of the relationship between a predictor variable and the response variable. A positive sign indicates that as the predictor variable increases, the response variable also increases.

What do the estimates of the regression coefficients tell us?

You may determine if each independent variable and the dependent variable have a positive or negative association by looking at the sign of a regression coefficient. A positive coefficient means that the mean of the dependent variable tends to rise when the value of the independent variable rises.

What is predictor and response variable in regression?

The risk factors and confounders are referred to as the predictors, or explanatory or independent variables, whereas the outcome variable is also known as the response or dependent variable. The independent variables are designated by "X" while the dependent variable is denoted by "Y" in regression analysis.

Learn more about predictor and response variable in regression: brainly.com/question/14144041

#SPJ4

7 0
2 years ago
What is the best definition of income tax?
Troyanec [42]
Taxes paid by employees to federal and state government. Collected or withheld from one’s paycheck.
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3 years ago
Brad is a transportation coordinator for volkswagen of north america. in order to move a large order of vehicles from a plant in
Soloha48 [4]
The combining and coordinating of these two modes of transportation in order to take advantage of benefits offered by each of the different types of carriers is called i<span>ntermodal transportation.
</span><span>Another term used to denote this transportation which involves using two or more modes of </span>transportation , <span>such as truck and rail, </span>in a journey is mixed-mode commuting. 
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