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Sauron [17]
3 years ago
10

Matt purchased a 20-year par value bond with an annual coupon rate of 8% compounded semiannually for a price of 1722.25. The cou

pons begin paying 6-months after the bond is purchased, and the bond can be called at par value X on any coupon date starting at the end of year 15, after the coupon is paid. The price guarantees that Matt will receive a nominal annual yield rate of at least 6% compounded semiannually. Note: The price guarantees that the yield will be a minimum of 6%. Find X (a) 1460 (b) 1440 (c) 1420 (d) 1400 (e) 1380
Business
1 answer:
finlep [7]3 years ago
4 0

Answer:

(b) 1440

Explanation:

As the coupon rate of 8% is greater than the yield to maturity (YTM) of 6% annually, the bond is selling at a premium. Hence, the bond will be called at the earliest i.e. 15 years.

Coupon = Call Price * Semi-annual coupon rate = X * [0.08 / 2] = X * 0.04

Yield to call = 6% annually = 3% semi-annually

Time = 15 years * 2 = 30

We know that,

Current Price of bond = Coupon * [1 - (1 + YTC)-call date] / YTC + Call Price / (1 + YTC)call date

  • 1,722.25 = [X * 0.04] * [1 - (1 + 0.03)-30] / 0.03 + [X / (1 + 0.03)30]

  • 1,722.25 = [X * 0.04] * 19.60 + [X * 0.41]

  • 1,722.25 = X * [(0.04 * 19.60) + 0.41]

  • 1,722.25 = X * 1.194

  • X = 1,722.25 / 1.194
  • X=$ 1,442.42 \approx $ 1,440

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mylen [45]

Answer:

Lease Plan

1) The trend in gender diversity that appears to be most supported by the outcomes of Lease Plan's program changes is:

Increases in seats on boards of directors—in Fortune 550 firms up to 16.6 percent in 2013 from only 9.6 percent in 1995.

2. Thomas's generic action options for managing diversity that is most illustrated in the case is:

include/exclude

3. Based on the information in the case, the barriers and challenges to managing diversity that were identified in the text that appear to have been present at Lease Plan were:

a. an unsupportive or hostile work environment

b. inaccurate stereotypes

Explanation:

Thomas's include and exclude generic action option emphasizes that more diverse employees should be employed in addition to minority-owned companies being used as vendors.  This option makes it possible for embracing and practicing workplace diversity.  It creates an open-minded and supportive workplace, encouraging the sharing of information and the integration of behavior to accept and value human differences, thereby overcoming stereotypes.

6 0
3 years ago
Pasadena Candle Inc. projected sales of 37,000 candles for January. The estimated January 1 inventory is 1,900 units, and the de
Vsevolod [243]

Answer:

Explanation:

The preparation of the production budget report in units for Pasadena Candle Inc. is shown below:

Projected sales                                                           37,000

Add: Desired January 31 inventory                           4,000

Available units                                                            41,000

Less: Estimated January 1 inventory                        -$1,900

Units produced                                                          $39,100

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Explanation:

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The advance / descent line is an indicator of market breadth because it informs us of the general market movement. Similarly, when we say that it gives the same weight to all stock index values, we are saying that for the forward / down line all values ​​are equally important.

What really interests this indicator, being of market breadth, is to see if the price movement is accompanied by the movement of the indicator.

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