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Svetradugi [14.3K]
3 years ago
14

Pandar Corp. issues 12-year, AA-rated bonds. What is the yield on one of these bonds? Disregard cross-product terms; that is, if

averaging is required, use the arithmetic average.
Business
1 answer:
Alecsey [184]3 years ago
8 0

Answer:

8.58%

Explanation:

risk free rate 2.8%

premiums on Pandar Corp.'s bonds:

  • maturity risk premium = 0.1 x (12 - 1)% = 0.1 x 11% = 1.1%
  • liquidity premium on Pandar Corp.'s bonds = 0.55%
  • default risk premium for AA bonds = 0.80%
  • inflation premium (assuming 4% inflation for first 4 years and 3% for the rest of the years) = (4% x 4/12) + (3% x 8/12) = 3.33%

total premiums on Pandar Corp.s' bonds = 5.78%

yield on Pandar Corp-'s bonds = risk free rate + premiums = 2.8% + 5.78% = 8.58%

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File a lawsuit against terry in a Colorado state court to enforce the Wyoming court judgement is the best course of action for Jill.

Explanation:

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3 years ago
1. define the forming stage and list four activities that happen in this stage
viva [34]

Answer:

  1. The forming stage involves a period of orientation and getting acquainted. Uncertainty is high during this stage, and people are looking for leadership and authority. A member who asserts authority or is knowledgeable may be looked to take control.
  2. It can be a petty clash of personality or an incompatibility in communication styles. Or it could be something more serious, such as a disagreement about the team's goals. It could even exhibit itself as one team member accusing another of not pulling their weight in the project.
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4 0
3 years ago
Wanda owns a lemonade stand. she produces lemonade using five inputs: water, sugar, lemons, paper cups, and labor. her costs per
kari74 [83]
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For 300 cups of lemonade, Wanda profit's will be 0.32 * 300 = 96
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3 years ago
Management is considering replacing its blending equipment. The annual costs of operating the old equipment are $250,000. The an
e-lub [12.9K]

Answer:

$250,000

Explanation:

Since the purchase cost of an old equipment is already incurred and it does not have any kind of impact in decision making so this cost would be considered as the sunk cost i.e. $250,000

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2 years ago
Harvey is an auto dealer at Vonga Automobiles. As part of his team, he is required to directly call potential customers and conv
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Answer: Sales orientation

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4 0
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