Answer:
The dollar value of an 01 is:
$78.4472
Explanation:
a) Data and Calculations:
Bond coupon = 7.6%
Current price = $1,032.20
The yield to maturity value = $1,032.20 * 1.076 = $1,110.6472
Dollar value of an 01 = $1,110.6472 - $1,032.20 = $78.4472
b) In calculating the dollar value of the bond, which is a measure of the change in the value of the bond portfolio for every 100 basis point change in the interest rates, this is referred to as DV01 (that is, dollar value per 01). Often denoted as 100 basis points (bps), 0.01 is equivalent to 1 percent.
The correct answer is E; job structure and pay level.
Further Explanation:
Each company has different jobs and pay for their employees. Many workers start a job at entry level positions and will rise higher in the company the more time they are there.
Each job will pay differently and each job will have different levels of pay. This is how the pay structure is established in large companies. State and Federal government jobs always operate on a pay structure such as this.
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It is False When the housing market collapsed in 2007, the demand for loanable funds decreased and caused interest rates to decrease.
Because Interest rates typically decline during recessions as loan demand slows, bond prices rise and the central bank eases monetary policy. During recent recessions, the Federal Reserve has cut short-term rates and eased credit access for municipal and corporate borrowers. No price in the economy is as important as the price of money. Interest rates arguably drive the business cycle of expansion and contraction.
Interest rate is the amount a lender charges a borrower and is a percentage of the principal the amount loaned.
Recession is a period when the business and industry of a country is not successful.
Corporate is formed into an association and endowed by law with the rights and liabilities of an individual.
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Answer:
5.6%
Explanation:
Internal growth rate can be calculated as below:
Internal growth rate = (Return on asset x Retention Rate)/[1 - (Return on asset x Retention Rate)]
Retention rate = 1 - Payout ratio = 1 - 30% = 70%
Return on asset = Net income/Asset = 82,490/1,089,500 = 7.6%
Putting all the number together, we have:
Sustainable growth rate = (7.6% x 70%)/[1 - (7.6% x 70%)] = 5.6%