Hernandez Corporation expects to have the following data during the coming year. What is Hernandez's expected ROE? Assets $200,0
1 answer:
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Answer: -12.1%
Explanation:
Bond Sam was priced at Par which means it could have been priced at $1,000 and its yield was the same as the coupon rate of 8%.
If interest rates rise by 5%, the yield becomes:
= 8% + 5%
= 13%
Price of bond is attached:
Yield = 13% /2 = 6.5% per semiannual period
Coupon = 8% * 1,000 * 0.5 = $40 per semi annual period
Period till maturity = 3 * 2 = 6 semiannual periods
Price = $878.97
Percentage change in price:
= (878.97 - 1,000) / 1,000 * 100%
= -12.1%
Answer:
Explanation:
The calculation is shown in the picture attached
P-value > 0.05 it is concluded that the null hypothesis is not reject.
There is not enough evidence to claim that the more than 10% of all plates blister under such circumstances.
