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yawa3891 [41]
3 years ago
9

Consider two bonds, a 3-year bond paying an annual coupon of 5%, and a 20-year bond, also with an annual coupon of 5%. Both bond

s currently sell at par value. Now suppose that interest rates rise and the yield to maturity of the two bonds increases to 8%. a. What is the new price of the 3-year bond?
Business
1 answer:
Minchanka [31]3 years ago
5 0

Answer:

$922.69  

Explanation:

The price of the 3-year bond can be computed using the below bond price formula:

Price=face value/(1+r)^n+coupon*(1-(1+r)^-n)/r

face value is $1000

r is the new interest rate of 8%

n is the number of annual coupons the bond would pay which is 3

coupon=face value*coupon rate=$1000*5%=$50

price=1000/(1+8%)^3+50*(1-(1+8%)^-3)/8%

price of 3-year bond=$922.69  

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Market performance in the United States is tracked using stock changes. which use formulas to calculate price​
Alik [6]

Answer: index

Explanation:

Here is the complete question:

Market performance in the United States is tracked using stock _____, which use formulas to calculate price changes.

a. Indexes

b. quotes

c. futures

d. trades

An index is defined as the method used in tracking the performance of an asset. Indexes measure the performance of securities. It shows whether the prices of stock are falling or rising.

5 0
2 years ago
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Lancencus, a software company, plans to double its workforce in the next 10 years. To achieve this goal, the human resources man
lions [1.4K]

Lancencus's plan to double its workforce in the next 10 years is an example of a distal goal.

Explanation:

Distal goals are tasks that take longer to be accomplished.

For example, it is indeed a distal goal to receive a university degree. Proximal targets are more likely, but less likely. Distal goals are less probable, but have a higher value. These are less inspiring when distal and proximal goals are not related.

People can continue and reach distal goals more often if associated with proximal priorities. If it is aligned with a particular distal target, they are much more likely to accomplish a proximal goal (Miller & Brickman, 2004).

For example, one reason most people have become so excited about playing video games is because they have a hierarchy of linked goals.

3 0
3 years ago
A university cafeteria line in the student union hall is a self-serve facility in which students select
Setler [38]

Answer:

The answer to this question is a= µ=60/12=5 students/min

Explanation:

Solution

Given that:

λ=4 students / min

The Waiting time in Queue= λ /µ(µ- λ )==4/(5*(5-4))=0.8 min

The Number of students in the line L(q)= λ *W(q)= 4*.8= 3.2 students

TheNumber of students in the system L(q)= λ /(µ- λ )=4/(5-40=4 students

Then,

The Probability of system to be empty= P0= 1-P= 1-0.8= 0.2

Now,

If the management decides to add one more cashier with the same efficiency then  we have

µ= 6 sec/student= 10 students/min.

so,

P= λ /µ =4/10=0.4

Now,

The probability that cafeteria is empty= P0= 1-0.4= 0.6

If we look at the above  system traits, it is clear that the line is not  empty and the students have to standby for 0.8  in the queue waiting to place their order and have it, also on an average there are 3.2 students in the queue and in the entry cafeteria there are 4 students who are waiting to be served.

If the management decides to hire one more cashier with the same work rate or ability, then  the probability of the cafeteria being free moves higher from 0.2 to 0.6 so it suggests that the management must hire one additional cashier.

7 0
3 years ago
NorthWest Corp. obtained the following information from its accounting records: Sales $70,000 Beginning Finished Goods Inventory
GrogVix [38]

Answer:

Cost of goods manufactured = Cost of goods sold + Ending finished goods inventory - Beginning finished goods inventory

Cost of goods manufactured = $22,000 + $46,000 - $10,000

Cost of goods manufactured = $58,000

Explanation: In order to obtain cost of goods manufactured, we need to add cost of goods sold to ending finished goods inventory and deduct beginning finished goods inventory. Ending work-in-process inventory should be ignored because it has been considered before arriving at cost of goods manufactured.

6 0
3 years ago
If a financial manager focuses on monitoring and influencing the company's current assets and liabilities, he or she is involved
Nostrana [21]

Answer: A) Working capital

Explanation: The current assets and current liabilities represent the operating components of a financial statements. These are assets and liabilities which are settled within a one year period and are thus aggregated called working capital

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3 years ago
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