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Mama L [17]
3 years ago
11

Bond valuationThe process of bond valuation is based on the fundamental concept that the current price of a security can be dete

rmined by calculating the present value of the cash flows that the security will generate in the future.There is a consistent and predictable relationship between a bond’s coupon rate, its par value, a bondholder’s required return, and the bond’s resulting intrinsic value. Trading at a discount, trading at a premium, and trading at par refer to particular relationships between a bond’s intrinsic value and its par value. These result from the relationship between a bond’s coupon rate and a bondholder’s required rate of return.Remember, a bond’s coupon rate partially determines the interest-based return that a bond (might/will)...........pay, and a bondholder’s required return reflects the return that a bondholder(would like/is obligated).............to receive from a given investment.The mathematics of bond valuation imply a predictable relationship between the bond’s coupon rate, the bondholder’s required return, the bond’s par value, and its intrinsic value. These relationships can be summarized as follows:• When the bond’s coupon rate is equal to the bondholder’s required return, the bond’s intrinsic value will equal its par value, and the bond will trade at par.• When the bond’s coupon rate is greater to the bondholder’s required return, the bond’s intrinsic value will (be less than/exceed/equal)................its par value, and the bond will trade at a premium.• When the bond’s coupon rate is less than the bondholder’s required return, the bond’s intrinsic value will be less than its par value, and the bond will trade (at a premium/at par/at a discount).............................For example, assume Noah wants to earn a return of 9.00% and is offered the opportunity to purchase a $1,000 par value bond that pays a 7.50% coupon rate (distributed semiannually) with three years remaining to maturity. The following formula can be used to compute the bond’s intrinsic value:4. Bond valuation The process of bond valuation is
Business
1 answer:
boyakko [2]3 years ago
5 0

Answer:

will, is obligated, exceed, discount,

Explanation:

The complate question is:

Bond valuationThe process of bond valuation is based on the fundamental concept that the current price of a security can be determined by calculating the present value of the cash flows that the security will generate in the future.There is a consistent and predictable relationship between a bond’s coupon rate, its par value, a bondholder’s required return, and the bond’s resulting intrinsic value. Trading at a discount, trading at a premium, and trading at par refer to particular relationships between a bond’s intrinsic value and its par value. These result from the relationship between a bond’s coupon rate and a bondholder’s required rate of return.Remember, a bond’s coupon rate partially determines the interest-based return that a bond (might/will)...........pay, and a bondholder’s required return reflects the return that a bondholder(would like/is obligated).............to receive from a given investment.The mathematics of bond valuation imply a predictable relationship between the bond’s coupon rate, the bondholder’s required return, the bond’s par value, and its intrinsic value. These relationships can be summarized as follows:• When the bond’s coupon rate is equal to the bondholder’s required return, the bond’s intrinsic value will equal its par value, and the bond will trade at par.• When the bond’s coupon rate is greater to the bondholder’s required return, the bond’s intrinsic value will (be less than/exceed/equal)................its par value, and the bond will trade at a premium.• When the bond’s coupon rate is less than the bondholder’s required return, the bond’s intrinsic value will be less than its par value, and the bond will trade (at a premium/at par/at a discount).............................For example, assume Noah wants to earn a return of 9.00% and is offered the opportunity to purchase a $1,000 par value bond that pays a 7.50% coupon rate (distributed semiannually) with three years remaining to maturity.

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Its B

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Dr. Leo is involved in an applied research study of customer satisfaction with a newly developed line of facial cosmetics and ot
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Answer:

industrial/organizational

Explanation:

Based on the information provided within the question it seems that Dr. Leo is most likely an industrial/organizational psychologist. This type of psychology focuses on studying work relations within an organization as well as improving quality of life of the employees and work relationships. This also applies to the relationship between the organization and the customers, as is the case in this situation as Dr. Leo deals with customer satisfaction.

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3 years ago
Red Carpet Inc. is a small apparel store started by an aspiring designer. The store needs to compete against larger, well-establ
KatRina [158]

Answer:

The answer is: Red Carpet should try to focus on niche market segments.

Explanation:

A niche market is part of a greater market, but its focus is set on very specific products. The niche market has very specific market needs that need to be targeted by very specific products.

Usually niche markets are targeted by high priced products since normal broad range products or services will not satisfy their specific needs. For example, vegan restaurants are more expensive than McDonald's or Pizza Hut.

Since niche markets are small, usually big multinational corporations don't pay attention to them.

5 0
3 years ago
The following information is for the Jeffries​ Corporation: Product​ A: Revenue ​$18.00 Variable Cost ​$14.00 Product​ B: Revenu
shusha [124]

Jeffries Corporation's Operating Income from the two products is <em>A. ​$35,000.</em>

The operating income is the difference between the revenue and operating costs (variable and fixed costs).

Data and Calculations:

                             Product A     Product B     Total

Revenue                 $18.00           $21.00

Variable cost            14.00              13.00

Contribution            $4.00             $8.00

Fixed costs                                                 $143,000

Total sales units                                            35,600

Sales mix                  3                        1               4

Sales units             26,700           8,900      35,600

Total contribution$106,800      $71,200  $178,000

Total fixed costs                                          143,000

Operating income                                      $35,000

Thus, the operating income is $35,000.

Read more: brainly.com/question/14815746

 

5 0
2 years ago
Boney Corporation processes sugar beets that it purchases from farmers. Sugar beets are processed in batches. A batch of sugar b
STatiana [176]

Answer:

$25 per batch

Explanation:

Combined final sales value:

= Sales value of refined sugar + Sales value of industrial fiber

= $65 + $65

= $130

Financial advantage:

= Combined final sales value - Further Processing - sugar beets costs - Cost to Crush

= $130 - ($17 + $21) - $54 - $13

= $130 - $38 - $54 - $13

= $25 per batch

Therefore, the financial advantage (disadvantage) for the company from processing one batch of sugar beets into the end products industrial fiber and refined sugar is $25.

8 0
3 years ago
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