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belka [17]
3 years ago
8

Suppose that 6-month, 12-month, 18-month, 24-month, and 30-month zero rates are 3%, 3.2%, 3.4%, 3.5%, and 3.6% per annum with co

ntinuous compounding respectively. Estimate the cash price of a bond with a face value of 100 that will mature in 30 months and pays a coupon of 4.5% per annum semiannually.

Business
1 answer:
Dima020 [189]3 years ago
7 0

Answer:

cash price: 102.78

Explanation:

In bond valuation, the investor would be willing to pay, at the most, the present value of the future income stream discounted at the required rate of return (or yield). Thus, the value of the bond can be determined as in working shown in file attached.

there is an inverse relationship between the yield of a bond and its price or value. The higher rate of return (or yield) required, the lower the price of the bond, and vice versa. However, it should be noted that this relationship is not linear, but convex to the origin.

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A Nike Hoodie has a retail price of $99.00 and it costs the retailer $49.50. What is the mark-up
guajiro [1.7K]

Answer:

100%

Explanation:

Mark-up is the difference between selling price and cost price

Selling price =$99.00

Cost price = $49.50

Mark up = $99- 49.50

=$49.50

As a percentage

= $49.50/$49.50 x 100

= 1 x 100

= 100%

6 0
3 years ago
Sales $ 2,000,000 100 % $ 500,000 100 % $ 2,500,000 100 % Variable expenses 800,000 40 % 250,000 50 % 1,050,000 42 % Contributio
Sonja [21]

Answer:

$1.5 million

Explanation:

The computation of break even sales in dollars is shown below:

= (Fixed expenses) ÷ (profit volume ratio)

where,  

Contribution margin  = Sales  - Variable expense

= $2,500,000 - 1,050,000

= $1,450,000

And, Profit volume ratio = (Contribution) ÷ (sales) × 100

So, the Profit volume ratio = ($1,450,000) ÷ ( $2,500,000) × 100 = 58%

And, the fixed expenses is $870,000  

Now put these values to the above formula  

So, the value would equal to  

= ($870,000) ÷ (58%)  

= $1.5 million

3 0
3 years ago
Why would a Roth 401(k) investment plan allow you to invest the most amount of money?
ycow [4]

Answer:

401k

Explanation:

investment plan allow you to invest the most amount of money? ... A Roth 401(k) plan takes money after tax has been removed from gross income, and has a contribution limit, but withdrawal is tax free. A Roth Individual Retirement Account allows you to draw a fixed amount that is not taxed.

3 0
2 years ago
Trust Machines Inc. is a company that manufactures and markets consumer electronics. The unique microprocessors developed by the
enyata [817]

Answer:

Difficult to Imitate (I)

Explanation:

The unique microprocessors developed by the company contribute to its high resource immobility. According to the resource-based view of competitive advantage, when a company is achieving resource immobility, it allows the company to create competitive advantage.

The theory of Resource-Based View is that if Trust Machines can create a company of people, processes and technologies that cannot be easily copied or imitated by competitors it means that your resources are diverse and immobile, and it can create competitive advantage.

3 0
3 years ago
Michael is the new department head at his company. he expects everyone to agree with his restructuring plan for the department,
Aleksandr [31]

Michael is creating an atmosphere in which his department members are so afraid of conflict and so eager for harmony that their decision making becomes uncritical, irrational, and dysfunctional. This psychological phenomenon is known as groupthink.

5 0
3 years ago
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