Answer:
c. not affect the bond's duration.
Explanation:
The bond duration measures the sensitivity of a bond's price to change in the interest rate. It is a linear measure of those years in which the repayment of the principal is due. the change in interest rate does not affect the duration of the bond.
On the other hand decrease in interest rate would increase the bond's PV and Price of the bond as well.
Payment frequency would not change with the decrease interest rate.
The Coupon rate will also remain the same whether the interest rate increases or decreases.
Answer:
Option D is correct.
Third-degree price discrimination
Explanation:
tennis coach charges $15 per hour for tennis lesson for children and $30 per hour for tennis lessons for adults. This can be viewed as a practice of <u>Third-degree price discrimination.</u>
Third Degree Price Discrimination involves charging a different price to different groups of consumers for the same good. These groups of consumers can be identified by particular characteristics such as age, sex, location, time of use.
Answer:
KJ Pharma Corporation
KJ Pharma's after-tax cost of debt is:
= 4.55%.
Explanation:
a) Data and Calculations:
Face value of the bond = $100
Annual coupon rate (cost of debt) = 6.5%
Maturity period of bond = 20 years
Tax rate = 30%
After-Tax Cost of Debt = 6.5 (1 - 0.3)
= 4.55%
b) KJ Pharma's after-tax cost of debt is the interest paid on the bond less any income tax savings accounted for as deductible interest expenses. To calculate the after-tax cost of debt, KJ subtracts the company's effective tax rate from 1 and multiplies the difference by its cost of debt.
Answer:
marketing information system (MIS)
Explanation:
There are three primary types of marketing information marketers use to gain insights that will contribute to wise marketing choices: internal data, competitive intelligence, and marketing research.
