Answer:
The below solution will guide your believe of what should be appropriate qualitative assumptions for inherent risk.
Explanation:
Answer:
$10,856
Explanation:
Price of the bond is the present value of all cash flows of the bond. These cash flows include the coupon payment and the maturity payment of the bond.
According to given data
Face value of the bond is $10,000
Coupon payment = C = $10,000 x 4.8% = $480 annually = $240 semiannually
Number of periods = n = 22 years x 2 = 44 period
YTM = 4.2% annually = 2.1% semiannually
Price of the bond is calculated by following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond = $240 x [ ( 1 - ( 1 + 2.1% )^-44 ) / 2.1% ] + [ $10,000 / ( 1 + 2.1% )^44 ]
Price of the Bond = $6,848.64 + $4007.4 = $10,856.04
Answer:
Oligopoly
Explanation:
Oligopoly - it is referred to as a marketing structure in which there are few suppliers in the market and every supplier has its own unique function and unique control over the market.
In the given question, cleftell Inc is also one of that firm which has its own control over the market that is why government back them so that they will supply the coal in discounted rate as before
Banks lend money from saving accounts to people who need loans
