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zubka84 [21]
3 years ago
8

A 30-year zero coupon bond with a face value of $5,000 is currently selling for $1,156.88 and has a market rate of interest of 5

%. Using the bond's modified duration, what is the approximate change in the price of the bond if interest rates fall to 4.25%
Business
1 answer:
daser333 [38]3 years ago
5 0

Answer:

Price will increase by $277.58

Explanation:

Market rate of Interest of a zero coupon bond can be determined by following formula

Market Rate of Interest = [ ( F / P )^(1/30) ] - 1

4.25% = [ ( $5000 / P )^(1/30) ] - 1

0.0425 + 1 = ( $5000 / P )^1/30

( 1.0425 )^30 = (( $5000 / P )^1/30)^30

3.4856 = $5000 / P

P = $5,000 / 3.4856

P = $1,434.46

Now Calculate the change in Price

Change in price = $1,434.46 - $1,156.88 = $277.58

Price will increase by $277.58

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The Potential<u> </u><u>Privacy and Security Issues</u> is a major flaw of the BYOD Strategy.

<h3>What is the BYOD Strategy?</h3>

BYOD a strategy in telecommunications security that allows business partner and workers to use their own devices to access the company's network, applications, and access company information.

Whilst it is cost savings in terms of hardware and provides convenience, it exposes the company to a lot of insecurity.

See the link below for more about the BYOD Strategy:

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5 0
2 years ago
The innovation paradox implies that consistency in products and services provokes a tension with the need for new products. This
arsen [322]

Answer: A. Stability and change

Explanation:

The innovation paradox implies that consistency in products and services provokes a tension with the need for new products. This results in a conflict between

A) stability and change.

B) structure and culture.

C) rewards and metrics.

D) stability and metrics

The paralysis that occurs between sticking to existing products and services (stability) and the need for the development of new ones (change) is a direct effect of the innovation paradox which states that the more a firm pays attention to innovation, the less likely it will be to be successful at innovation. In other words, consistency in products and services provokes a tension with the need for new products. While stability enables change in that it supplies security and consistency, reserved knowledge and skills and enables commitment and the provision of resources for a better realization and actualization of change, change enables a firm to set up a new state of stability through variable mechanisms (innovation) This serves to assist an organization in reaching new stable stages with higher efficiency.

8 0
2 years ago
Bradshaw Inc. is contemplating a capital investment of $88,000. The cash flows over the project’s four years are: Year Expected
Yuri [45]

Answer:  3.50 years

Explanation:

The Payback period is a method of checking the viability of a project. It measures how long it will take a project to pay back it's initial investment.

Formula is;

= Year before payback + Cash remaining till payback/ Cash inflow in year of payback

Year 1 Net Cash Inflow

= Cash Inflow - Cash Outflow

= 30,000 - 12,000

= $18,000

Year 2

= 45,000 - 20,000

= $25,000

Year 3

= 60,000 - 25,000

= $35,000

Year 4

= 50,000 - 30,000

= $20,000

Year 1 + 2 + 3

= 18,000 + 25,000 + 35,000

= $78,000

Amount remaining till payback

= Investment - Cash inflow so far

= 88,000 - 78,000

= $10,000

= Year before payback + Cash remaining till payback/ Cash inflow in year of payback

= 3 + 10,000/20,000

= 3.50 years

8 0
3 years ago
Personal finance and I need help
Alex777 [14]
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3 years ago
Many companies use the Internet to allow consumers to design customized products; for example, Nike allows customers to order sh
Alja [10]

Answer:

The correct answer is A. micro-marketing.

Explanation:

In micro marketing strategy marketers give their advertising ans selling efforts on a small group of tightly targeted consumers.

For example, the market can be grouped into small groups based on a commitment to a product class or readiness to purchase a given brand.This grouping can be based on following aspect of customers

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8). Price Sensitivity

Nike allows customers to order shoes with custom color combinations is a type of need based micro-marketing.

4 0
3 years ago
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