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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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Answer:

D) Use production technologies that conserve on the number of workers.

Explanation:

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Total 17500 shirts are produced and sold. The selling price is $22, variable cost per unit is $18 and fixed cost is $ 80000. If
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Answer:

please mark me as brainlist please

Explanation:

The basic theory illustrated in (Figure) is that, because of the existence of fixed costs in most production processes, in the first stages of production and subsequent sale of the products, the company will realize a loss. For example, assume that in an extreme case the company has fixed costs of ?20,000, a sales price of ?400 per unit and variable costs of ?250 per unit, and it sells no units. It would realize a loss of ?20,000 (the fixed costs) since it recognized no revenue or variable costs. This loss explains why the company’s cost graph recognized costs (in this example, ?20,000) even though there were no sales. If it subsequently sells units, the loss would be reduced by ?150 (the contribution margin) for each unit sold. This relationship will be continued until we reach the break-even point, where total revenue equals total costs. Once we reach the break-even point for each unit sold the company will realize an increase in profits of ?150.

For each additional unit sold, the loss typically is lessened until it reaches the break-even point. At this stage, the company is theoretically realizing neither a profit nor a loss. After the next sale beyond the break-even point, the company will begin to make a profit, and the profit will continue to increase as more units are sold. While there are exceptions and complications that could be incorporated, these are the general guidelines for break-even analysis.

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2 years ago
The text reports the results of a test for the significance of the difference in average income for random samples of males and
Ne4ueva [31]

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Sue earned $21,000 at her waitress job last year; she also made $7,000 in tips. in addition, sue earned $95 interest on her savi
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(C) Debit Cash, credit Unearned Revenue.

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