Answer:
-3.91%.
Explanation:
The Duration Adjustment (% change in bond price) is given by:
= (Duration) * (Change in yield in %)
= -(7.81) x (0.5%)
= -3.91%
The Convexity Adjustment is given by:
= 0.5 * Convexity * (Change in yield, as a fraction)^2
= 0.5 * 99.87 * (0.005)^2
= 0.5 * 99.87 * 0.000025
= 0.001248375
= 0.0012%
Thus, the convexity correction is 0.0012%
Thus, the total change in bond price = -3.91% + 0.0012% = -3.91%.
Answer:
Price competition in a monopolistically competitive market
Explanation:
The Monopolistic rivalry is an industry state with several firms that are closely linked to each other but offer distinct goods. Therefore, this sector has unlimited entry and exit
Here the company offers the same service but there are totally different in terms of design, service, quality, etc
Hence, the correct option is c
Answer:
a. $181.17
b. $218.82
c. $319.21
Explanation:
If the borrower repays the loan after 2 year
PV = $150
n = 2
r = 9.9%
P/yr = 1
Pmt = $0
FV = ?
Using a financial calculator, FV = $181.1702
The amount that will be due if the borrower repays the loan after 2 year is $181.17.
If the borrower repays the loan after 4 years
PV = $150
n = 4
r = 9.9%
P/yr = 1
Pmt = $0
FV = ?
Using a financial calculator, FV = $218.8175
The amount that will be due if the borrower repays the loan after 2 year is $218.82.
If the borrower repays the loan after 8 years
PV = $150
n = 8
r = 9.9%
P/yr = 1
Pmt = $0
FV = ?
Using a financial calculator, FV = $319.2073
The amount that will be due if the borrower repays the loan after 2 year is $319.21.
Answer: D. $20
Explanation:
Total cost to produce 50 cookies = Total cost to produce 100 cookies - Marginal cost to produce 50 cookies
Total cost to produce 100 cookies is:
= Average total cost * number of cookies
= 0.25 * 100
= $25
Marginal cost to produce 50 cookies is:
= Constant marginal cost * number of cookies
= 0.10 * 5
= $5.00
Total cost to produce 50 cookies = 25 - 5
= $20.00
Answer:
32.35% ( the probability that in any given year, the return on long-term corporate bonds will be greater than 10 percent )
Explanation:
Given data for long-term corporate bonds
Standard deviation : 8.3%
mean = 6.2%
To calculate the probability that in any given year, the return on long-term corporate bonds will be greater than 10 percent ( USING THE NORM-DIST FUNCTION )
P( x > 10% ) = 1 - P(x<10%) = 1 - NORM-DIST (10,6.2,8.3,TRUE ) = 0.3235
= 32.35%
attached below is the missing part of your question
