Answer: indefinitely, the pension obligation will resemble a perpetuity. Suppose, therefore, that you are managing a pension fund with obligations to make perpetual payments of $1.4 million per year to beneficiaries. The yield to maturity on all bonds is 13.0%. a. If the duration of 5-year maturity bonds with coupon rates of 9.0% (paid annually) is 4 years and the duration of 20-year maturity bonds with coupon rates of 6% (paid annually) is 11 years, how much of each of these coupon bonds (in market value) will you want to hold to both fully fund and immunize your obligation? (Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place. Omit the "$" sign in your response.) b. What will be the par value of your holdings in the 20-year coupon bond? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places. Omit the "$" sign in your response.)
Explanation:
Listening: Make it Your Secret Communication Weapon
<span>Take Accountability: Do What You Say You're Going to Do
</span><span>Creative Thinking: Be Resourceful With What You've Got
</span><span>Emotional Awareness: Know What You're Feeling
</span><span>Empathy: Go Outside to Connect Inside</span>
Answer:
b. confirmation
Explanation:
In the confirmation step of the adoption process, a consumer begins to give the product a mental trial by applying it to his or her personal situation.
I believe it's B but I am not positive. I'm taking the test right now.
Answer:
$3,600
Explanation:
According to the scenario, computation of the given data are as follows,
Bonds Face value = $50,000
Discount = 4%
Time period = 20 years
Interest rate = 7%
Premium = $50000 - ( $50,000 × 96%) = $2,000
So, we can calculate interest expense by using following formula,
Interest expense = ($50,000 × 7%) + ($2,000 ÷ 20)
= $3,600