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mezya [45]
3 years ago
12

A 5.75 percent coupon bond with 10 years left to maturity is priced to offer a 6.5 percent yield to maturity. You believe that i

n one year, the yield to maturity will be 6.0 percent. What is the change in price the bond will experience in dollars
Business
1 answer:
balu736 [363]3 years ago
4 0

Answer:

The change in price is $36.91  

Explanation:

Using the present value pv formula in excel the price of the bond now and in one year's time can be computed:

=pv(rate,nper,pmt,fv)

rate is the yield to maturity which is 6.5% and 6% respectively

nper is the number of years to maturity which is 10 years and 9 years respectively

pmt is the periodic payment of coupon 5.75%*$1000=$57.5

fv is the value receivable on redemption which is $1000 in both cases

=pv(6.5%,10,57.5,1000)

pv=$946.08  

=pv(6.00%,9,57.5,1000)

pv=$983.00  

Change in price =$983.00 -$946.08  =$36.91  

Find attached.

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Chemical labels must contain a product identifier, signal word and a pictogram to represent the hazards. What other information
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Answer:

The other information required on a chemical label are;

Precautionary Statements

Hazard Statements

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Explanation:

Precautionary statement describes recommended measures that should be taken to minimize or prevent adverse effect resulting from exposure to the hazardous chemical

Hazard statement describes the nature of the hazard of the chemical.

Contact information; the name, Address and telephone number of the chemical manufacturer, importer or other responsible party.

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4 years ago
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Explanation:

The entry records the investment of cash by John, owner of a sole proprietorship is: Debit Cash; credit John, Capital.
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3 years ago
Give the meaning and important aspects of the process of globalisation.​
kherson [118]

Answer:

Globalization by definition is that process that the business or n organisation begins to operate on an international standards.It involves interactions amongst individuals , institution and even the government.

There are 4 basic aspects of globalization

1.Dissemination of knowledge.

2.Migration and movement

3.Capital and investment movement

4.Trade and transctions.

Explanation:

1.in the first point , we view globlisation as a measure in the changes of the human heritage by the aspect of knowledge.people's world wide ideologies are disseminated by varoious means far and wide, in the whole world.

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6 0
3 years ago
Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be ______
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Expansionary fiscal policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be _<u>higher</u><u>_</u>and real GDP to be <u>higher.</u>

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What is Expansionary fiscal policy ?</h3>

Expansionary fiscal policy can be defined as the type of fiscal policy in which government intend to increase the aggregate money supply while on the other hand cut or reduce the tax rate for the purpose of economy growth.

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Inconclusion the inflation rate will be _<u>higher</u><u>_</u>and real GDP will be <u>higher.</u>

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Learn more about Expansionary fiscal policy here:brainly.com/question/546292?source=archive

3 0
2 years ago
Meenach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-ho
o-na [289]

Answer:

Fixed overhead application rate

= <u>Budgeted fixed overhead</u>

  Budgeted direct labour hours

= <u>$114,000</u>

  60,000 hrs

= $1.90 per direct labour hour

Amount of overhead applied to job X387:     $

Variable overhead $4.90 x 170 hours         = 833

Fixed overhead $1.90 x 170 hours               = 323

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Explanation:

In this case, there is need to calculate the fixed overhead application rate based on direct labour hours by dividing the the budgeted fixed overhead by budgeted direct labour hours. Then, we will calculate the overhead applied to Job X387 by multiplying the fixed and variable application rate by actual direct labour hours of 170 hours.

7 0
3 years ago
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