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barxatty [35]
3 years ago
14

The Faulk Corp. has a bond with a coupon rate of 4 percent outstanding. The Gonas Company has a bond with a coupon rate of 10 pe

rcent outstanding. Both bonds have 12 years to maturity, make semiannual payments, and have a YTM of 7 percent. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds?
Business
1 answer:
motikmotik3 years ago
6 0

Answer:

Decrease in price of the bond by 16.01%

Explanation:

Find the price of the bond with the two different YTMs and compare the two prices;

<u>a.) at 7% YTM and semi-annual coupons</u>

N = 12*2 = 24

I/Y = 7%/2 = 3.5%

FV = 1,000 (use 1000 as FV if not given)

PMT = (4%/2)*1000 = 20

PV = $759.12

b.) <u>at 7% YTM and semi-annual coupons</u>

N  = 24

I/Y = (7%+2%)/2 = 4.5%

FV = 1,000 (use 1000 as FV if not given)

PMT = (4%/2)*1000 = 20

PV = $637.61

Percentage change in price = [($637.61 - $759.12)/$759.12] *100

Percentage change in price = -16.01%

There is a decrease in price of the bond by 16.01%

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Answer:

The correct word for the blank space is: strategic vision.

Explanation:

The strategic vision of a company outlines the path the organization should follow and the set of steps that are to be taken to reach the firm's objectives in the long term. Compared to the mission, the vision is in charge of answering the question of <em>what the impact of the organization's operations will be for the internal environment of the firm</em>.

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Kyle, a single taxpayer, worked as a freelance software engineer for the first three months of 2021. During that time, he earned
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Data and Calculations:

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Self-employment income for three months = $44,000

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Total income for 2021 = $222,000

FICA taxes:

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Thus, Kyle's total FICA taxes for 2021 is $17,181.

Learn more about calculating FICA taxes at brainly.com/question/21750517

4 0
3 years ago
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you get out of the car take a photo and get back in and drive

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5 0
3 years ago
Lower of Cost or Market The accountant for Murphy Company prepared the following analysis of its inventory at year end: Item Uni
Nina [5.8K]

Answer:

  $52,860

Explanation:

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7 0
3 years ago
FREIND MEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE
Svetradugi [14.3K]

Answer:

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Explanation:

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