Answer:
bond market value $660
Explanation:
We need to calculate the present value of the maturity and the cuopon payment using the effective rate of 9.7%
First we do the annuity:
C 24.25 (1,000 face value x 4.85 bond rate / 2 )
time 24.00 (12 year 2 payment a year)
rate 0.04850 (current rate divide by 2 to get it annually)
PV $339.55
Then present value of the maturity
Maturity 1,000.00 the face value of the bond
time 24.00
rate 0.04850
PV 320.89
Finally we add them together:
PV coupon payment $339.5545
PV maturity $320.8910
Total $660.4455
rounding to nearest dollar
bond market value $660
Answer:
Unrelated Diversification
Explanation:
The reason is that the company has entered in a number of product offering that are unrelated to each other. This means the company has subtantially reduced its industry risk by managing a portfolio of products that are different from each other from industry perspective. This is an example of unrelated diversification because comics are unrelated to sports figures, music videos and motion pictures.
Since 1960, when the Central American beef market began booming, over 25% of the rainforests have been cleared for cattle grazing is a TRUE statement.