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Answer:
Steve Jobs coming back, Innovations, and Tim Cook taking over as COO
Explanation:
The fluctuations in stock prices of a company are due to improved performance of the company in meeting it's objectives and perception that the business will do better in the future.
In the given scenario there was an initial increase in Apple’s stock price from $27.97 to $702.10, an increase of 25 times.
This can be attributed to the return of Steve Jobs as the CEO of Apple. There was a confidence boost by his coming back. Also there were various innovations like: iPhone, iMac, iPod, and iTunes. These improved the performance and by extension share price of Apple.
However when Tim Cook took over as COO he reduced production by half resulting in stock price decrease by 37% from its peak in September 2012 until the end of March 2013, from $702.10 to $442.66.
I believe it’s False, it might be wrong though
Answer:
Multiple choices below are missing:
A) purchase Bond A
B) purchase Bond B
C) purchase neither A nor B at this time
D) negotiate a higher rate on Bond A
The correct option is A,purchase bond A.
Explanation:
By purchasing Bond A,Lee is assured interest payment of 7.5% for a period of twenty years,hence the issuer cannot call the bond if interest rate drops by 2% in order to issue a lower interest-bearing bond which would be cheaper cost-wise.
However, if Lee purchases Bond B with current coupon of 8.25%,the interest is only guaranteed for a period of two years,since the issuer has the prerogative of calling back the bond after two years should interest fall in order to issue another bond that commands lower interest rate.
Answer:
The truth about Macaulay Duration and Modified Duration is:
d. All are true.
Explanation:
Principally, the Macaulay Duration, used mainly with immunization strategies, measures the weighted average time an investor holds a bond until the period when the present value of the bond’s cash flows equals to the initial bond amount.
On the other hand, the Modified Duration, providing a risk measure by being sensitive to interest rates, identifies the amount by which the duration changes for each percentage change in the yield and, at the same time, measures how the amount of a change in the interest rates impacts a bond's price.
