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timofeeve [1]
3 years ago
14

Last year Carson Industries issued a 10-year, 13% semiannual coupon bond at its par value of $1,000. Currently, the bond can be

called in 6 years at a price of $1,065 and it sells for $1,200. What is the bond's nominal yield to maturity
Business
1 answer:
ANEK [815]3 years ago
3 0

Answer:

10%

Explanation:

This can be calculated using the nominal yield to maturity (YTM) formula as follows:

Yield to maturity = [C + ((F - P) / n)] / [(F + P) / 2]  ........ (1)

Where;

F = Face or par value = $1,000

C = Coupon or interest payment = $1,000 * 13% = $130

P = quoted price = $1,200

n = Years to maturity = 10

Substituting the values into equation (1), we have:

Yield to maturity = [130 + ((1,000 - 1,200) / 10)] / [(1,000 + 1,200) / 2]  = 0.10, or 10%.

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(Vetro Inc) Vetro Inc. is a glass manufacturer that produces glasses of every shape and type. Recently it signed a contract to s
Nataliya [291]

Answer:

Answer is explained in the explanation section below.

Explanation:

Data Given:

LSL = 4.96 cm

USL = 5.04 cm

Mean = 5 cm

SD = 0.01 cm

1. Capability Index:

Cpk = min ( \frac{USL - Mean }{3SD} , \frac{Mean - LSL}{3SD} )

So, now, we need to find the following:

\frac{USL - Mean }{3SD} = \frac{5.04 - 5 }{3 * 0.01}

\frac{USL - Mean }{3SD} = \frac{0.04}{0.03}

\frac{USL - Mean }{3SD} = 1.33

Similarly,

\frac{Mean - LSL }{3SD} = \frac{5 - 4.96 }{3 * 0.01}

\frac{Mean - LSL }{3SD} = \frac{0.04}{0.03}

\frac{Mean - LSL }{3SD} = 1.33

So,

Cpk = min ( \frac{USL - Mean }{3SD} , \frac{Mean - LSL}{3SD} ) = 1.33

2. Maximum Standard deviation allowed.

Let SD be maximum standard deviation allowed.

So,

Mean - 3SD = 4.96     Equation 1

Mean + 3SD = 5.04    Equation 2

Subtracting Equation 2 from 1, we have

6SD = 5.04 - 4.96

6SD = 0.08

SD = 0.0133

3 0
3 years ago
Susie buys two goods: rounds of golf and massages.Suppose that the price of a round of golf is $20 and the price of a massage is
AfilCa [17]

Answer:

D) Susie would buy more massages and fewer rounds of golf,as predicted by the substitution effect.

Explanation:

Let's check the utility that Susie gets from consuming these products.

The second round of golf gives her 20 units of satisfaction at $20 = 20/20 = 1

The third massage gives her 30 units of satisfaction at $30 = 30/30 = 1

But now the price the price for massage has come down to $15. The ratio of their prices would be

20/15 = 1.333

1.3 is greater than 1

So she should substitute golf for massages

6 0
2 years ago
Research shows that most managers have characteristics that fall into two or three decision-making styles, and that decision-mak
Alex787 [66]

Answer:

False

Explanation:

There are 3 main decision making styles that most of us have regarding our normal day to day activities that includes our work and our personal lives, e.g. families and individual decisions. They are consumer, business, and personal decision making styles.

But managers, and specially true leaders have it a little more complicated. The four main decision making styles that apply to leaders are:

  1. directive: type of autocratic leadership where the leader decides everything by himself/herself
  2. conceptual: look for different alternatives and analyze each one of them
  3. consultative: seek advice from colleagues and subordinates, but the leader makes the decision
  4. consensus: seek advice from others and decisions are made by the group

The second part of the question is true; this leadership styles vary across countries, occupations and job levels.

3 0
3 years ago
The major use of the matrix as a tool in international location strategy is to?
mestny [16]

The major use of the matrix as a tool in international location strategy is to indicate the relative placement of countries in terms of attributes.

A crucial component of a company's success is being in the ideal location. Location frequently affects a company's bottom line and overall profitability. A location strategy is a plan for finding the best site for a business by determining the needs and goals of the organisation and looking for locations with amenities that meet these needs and goals. This typically means that the company will work to maximise opportunities while lowering costs and risks.

A matrix structure combines two or more distinct organisational structure types. It is a way to build up the company's structure so that reporting linkages are established as a grid or matrix rather than in the conventional hierarchy.

Learn more about location strategy here

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7 0
2 years ago
What is the prime rate? a. the prime rate is the best interest rate that banks offer their most creditworthy customers. b. the p
trapecia [35]

Prime rate is (a) the best interest rate that banks offer their most creditworthy customers.

A prime rate is decided by the bank to lend money to its customers where the credit giving is decided on the basis of the credit history and points on the customers formally known as the credit rate of investment.

It totally depends upon the allowance of credit by financial institutions and then the payment made by the loan taking customers within a stipulated time frame.

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3 0
1 year ago
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