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vichka [17]
3 years ago
12

Suppose that JAN Corp. will issue a new 10 year AA rated corporate bond with a coupon rate of 7.00%. The bond pays interest semi

-annually and has a face value of $ 1,000. If existing AA corporate bonds with 10 years to maturity have a yield to maturity of 5.00%, what will be the discount or premium of JAN Corp.’s bond relative to its face value. Enter you answer as a positve number. Round your final answer to two decimals.
Business
1 answer:
k0ka [10]3 years ago
3 0

Answer:

The bond was issued at a premium of $ 155.89

Explanation:

In determining whether the bond was issued at premium or discount,it is important to ascertain the price at which the bond was issued first and foremost.

In arriving the price of he bond, all of the future cash flows of the bond are discounted to present values using the discounting factor 1/(1+r)^N

Find detailed calculation in the attached.

Download xlsx
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Cite 3 reasons for and 3 reasons against rebuilding Greensburg as a “green town
oee [108]

Answer:

<em>Reasons For: </em>

  • Less Wastage - A Green town according to the City Administrator Steve Hewitt would lead to more efficiency in the way that the city manages it's resources. The city will be more effective and more efficient which will have the effect of less waste in their materials. For instance, instead of having an 85% efficient furnace, they can buy a better one that will be more sustainable.
  • Increased Attractiveness - Green towns and cities are a new favourite of people especially in this day and age of constantly worrying about climate change. People would therefore look favourably upon Greensburg if they were to become a Green town and come to settle there which will fuel the town's economic growth. Elana for example may have been thinking about leaving the town but now she wants to stay and help build the Green town. This effect will be similar to people outside the town who will come for the very same purpose, building a green town.
  • There is an Opportunity to - Another reason to rebuild the town into a green town is simply because the opportunity has presented itself. The town was devastated and now there is a clean slate and canvass upon which to build upon. Why not seize the opportunity and build a green town. Building a green town in a town that still has buildings intact will mean tearing those down which will be expensive. Here, there is no need to worry about that.

<em>Reasons Against: </em>

  • Expensive - Going green is expensive because the tools required are quite pricey. Things like building a platinum green building or getting a more efficient furnace will definitely leave a dent in the town's purse and hit the tax payer hard which is worrisome as some of the residents just lost quite a few belongings and now have to rebuild their lives.
  • Priorities - The rebuilding of the town as a green town whilst commendable, should be done at the appropriate time and the question is whether now is the appropriate time. Businesses and homes were just destroyed and revenue streams hit as a result. There is the argument that the money to be spent on the green town should be redirected to help the businesses restart operations which will improve the town's tax base.
  • Decision is not Unanimous - Not everyone in the town agrees that it should be rebuilt as a green town. There seems to be opposition to it but the powers that be manipulate the meetings so that mostly those in favor get to voice their opinions which would signify that they had already made their decision. This is undemocratic and unfair because the town being rebuilt in a green manner will use the tax dollars of every resident and so they all need to be able to voice their opinions because it is their money and their town.

7 0
4 years ago
Walmart reduced waste in packaging by 3,500 tons by __________.
mash [69]
Walmart noticed that the packaging in some of their products only led to waste. Based from this observation, Walmart established a new policy requiring its toy suppliers to reduce the packaging of their products by one square-inch. Just from this reduction alone, Walmart's waste from packaging alone decreased by 3,500 tons. 
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notsponge [240]
Choose something that you want to do for a very long time
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Sidana [21]

Answer: excess demand, underestimate

Explanation:

P= 1200 - 2Q

300= 1200 - 2Q

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Q = 450

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Quantity supplied Q - P = 300

Excess demand = 450 - 300 = 150

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P= 1200 - 2(300)

= 1200 - 600

= 600

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= 0.5(600-300)(400-300)

= 0.5(300)(100)

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The welfare loss underestimate the actual loss

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Define financial literacy and financial planning in your own word
Roman55 [17]

Answer:

Financial literacy is the capacity to grasp and use different financial skills effectively.

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