Answer:
Market value at 8% YTM $ 743.2156
at 10% YTM $ 619.6960
Explanation:
Assuming the face value is 1,000 as common outstanding American company's bonds:
Market value under the current scenario:
<u>Present value of the coupon payment:</u>
<u />
Coupon: $1,000 x 5% = 50
time 15 years
rate 0.08
PV $427.9739
<u>Present Value of the Maturity</u>
<u />
Maturity 1,000.00
time 15.00
rate 0.08
PV 315.24
PV c $427.9739
PV m $315.2417
Total $743.2156
If the interest rate in the market increaseby 2% then investor will only trade the bonds to get a yield 2% higher that is 10% so we recalculate the new price:
C 50.000
time 15
rate 0.1
PV $380.3040
Maturity 1,000.00
time 15.00
rate 0.1
PV 239.39
PV c $380.3040
PV m $239.3920
Total $619.6960
Giving a lower price than before
Similar to a stock split, a stock <u>dividend</u> also distributes additional shares of stock to existing stockholders on a pro rata basis at no cost to the stockholders.
A stock split is a decision made by the board of directors of a firm to issue more shares to present owners in order to increase the number of shares outstanding.
A stock split is a division of issued shares in a ratio determined by the company, whereas a stock dividend is a dividend paid in the form of extra shares. While in a stock split, already issued shares are divided in accordance with a predetermined ratio, a stock dividend gives stockholders extra shares.
To know more about Stock Split here
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Answer:Yes
Explanation:
Pooled data occur when there is a time series of different cross sections with each observations not necessarily from the same unit while Panel data is sample from the same units. The main difference between them is the "units". The units can be countries, households, schools or other things we are collating data on.
In pooled cross section, random samples from different time periods and from different units are taken e.g. we can take data on number of females and males in schools A, B and C in 2020 and schools X, Y and Z in 2023.
In pure panel data, we are using the same units e.g we can take data on genders in schools A, B and C in 2020 and collect data from the same schools in 2023. Therefore the main difference is just the units we observe.
Loan account i believe
hope this helps :)
Answer:
An opportunity.
Explanation:
Businesses conduct a SWOT analysis when they want to identify their internal weaknesses and strengths, it is also used to identify external opportunity and threats.
Firms use the analysis to develop a competitive strategy in the market by taking advantage of opportunities presented while mitigating risk posed by threats in the industry.
In this scenario Hutchinson Essar obtained a 5.6% stake in Airtel fr Vodafone. This transaction resulted in movement of knowledge and technology previously available to Airtel to one of its competitors.
This was an opportunity for Hutchinson Essar.
