Answer:
Sam change: -5.13%
Dave change -18.01%
Explanation:
If interest rate increase by 2%
then the YTM of the bond will be 9.3%
We need eto calcualte the present value of the coupon and maturity of the bond at this new rate:
<em><u>For the coupon payment we use the formula for ordinary annuity</u></em>
Coupon payment: 1,000 x 7.3% / 2 payment per year: 36.50
time 6 (3 years x 2 payment per year)
YTM seiannual: 0.0465 (9.3% annual /2 = 4.65% semiannual)
PV $187.3546
<u><em>For the maturity we calculate usign the lump sum formula:</em></u>
Maturity: $ 1,000.00
time: 6 payment
rate: 0.0465
PV 761.32
Now, we add both together:
PV coupon $187.3546 + PV maturity $761.3154 = $948.6700
now we calcualte the change in percentage:
948.67/1,000 - 1 = -0.051330026 = -5.13
For Dave we do the same:
C 36.50
time 40
rate 0.0465
PV $657.5166
Maturity 1,000.00
time 40.00
rate 0.0465
PV 162.34
PV c $657.5166
PV m $162.3419
Total $819.8585
Change:
819.86 / 1,000 - 1 = -0.180141521 = -18.01%
Answer: 62 percent
Explanation: A sustainability survey commissioned by the consulting firm KPMG, stated that approximately 62 percent of large and mid-sized companies worldwide have an active sustainability program in place, and that another 11 percent are developing one. Sustainable development is aimed at replacing
economic development, thus encouraging better environmental
and sustainability performance.
Answer: $15,000
Explanation: The 80% coinsurance clause on the property means that the insurance policy holder is agreeing to contribute up to 80% of the property's worth. Hence in the event of a loss to the building worth $20,000; the insures policyholder would receive :
(Actual contribution/expected contribution) x value of loss to the property
Where : Expected contribution = 80% of property's worth
ie (80/100) x $400,000 = $320,000
then the insured is to receive: ($240,000/$320,000) x $20,000 = $15,000
Answer:
Break-even sales = $800,000.
Explanation:
<em>The beak-even point is the units of products to be sold or number of customers to be served to enable a business to cover exactly its total cost from the revenue. At the break-even point, the business makes no profit or no loss because the contribution from sales exactly equals the total fixed cost</em>
<em>Break-even in sales revenue = Total fixed cost/Contribution margin</em>
<em>Contribution margin (%) = Contribution/ sales × 100</em>
= 160,000/640,000
= 0.25 × 100
= 25%
<em>Fixed cost = Contribution - operating income</em>
= 160,000- -( 40,000)
= 160,000 + 40,000
= 200,000
<em>Break-even point sales = 200,000/25%</em>
= $800,000.
