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Makovka662 [10]
3 years ago
10

A firm issues two-year bonds with a coupon rate of 6.7%, paid semiannually. The credit spread for this firm's two-year debt is 0

.8%. New two-year Treasury notes are being issued at par with a coupon rate of 3.1%. What should the price of the firm's outstanding two-year bonds be per $100 of face value
Business
1 answer:
nekit [7.7K]3 years ago
8 0

Answer:

$105.34

Explanation:

Given:

  • Face value:  $100
  • Coupon rate of 6.7% semiannually = 6.7%/2 = 3.35% (semi-annually)

=> Coupon payment: $100*3.35% = $3.35

  • Nper: 2*2 =4
  • Yield to maturity is : 3.1% + 0.8% = 3.9%/2 = 1.95% (semi-annually)

Using present value formula in excel

pv=(rate,nper,pmt,fv)

pv = (1.95%, 4, 3.35,100)

pv = $105.34

The price of the firm's outstanding two-year bonds be per $100 of face value is:  $105.34

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Answer:

240,000,000

Explanation:

Each year you would need to invest 240,000,000 into the saving account over a period of five years to get to the desired amount. If they are only putting in 12%of the retirement funds that would 14,400,000 and that would take about 8 years.

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The first known application of marketing research to a business marketing/advertising problem was conducted by:
ehidna [41]

Answer:

An advertising agency.

Explanation:

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3 years ago
Compare and contrast the roles of the federal government as both promoter and regulator of industrial development and market cap
Tema [17]

Explanation:

Compare and Contrast ->

Roles of the federal government -> Promoter & Regulator of industrial growth

U.S.Government => Promoter & Regulator of industrial growth

                            Pacific Railway Act (1862)-They have been granted 20 square miles of land per 1 mile of the track laid down. It strongly encouraged the construction of transcontinental railway lines, contributing to five different transcontinental roads: Union Pacific RR, Central Pacific RR, South Pacific RR, North Pacific RR and the Great North. The Grants Act of Morrill Land (1862)-gave state free land.

U.S.Government => Roles of the federal government

                             Sherman Antitrust Act (1890)The purpose was to promote economic competition through the regulation of shares, cartels and monopolies. It was very uncompromisingly applied Interstate Trade Act (1887). It also prohibits discrimination against shippers and pays more on the same train for shorter routes than for longer routes.

Thesis:

In the 19th Century and in themid-19th Century, the government of the United States was much more a proponent of industrialisation then an industrialisation regulator than a regulator.

In the year 1862, for instance, congress took place on the Pacific Railway Act, which gave the railway lines 20 acres per mile. This eventually culminated in five transcontinental trains: Union Pacific Railways, Central Pacific Railways, North American Railways, South Pacific Railways, and the Great North.In end, this resulted in the creation of booming towns in the west, encouraging manufacturers to relocate to their inhabitants and enabling businesses to sell their products to remote locations that were once hard to reach. Congress also enacted Morrill's 1861 Tariff Act which substituted for a higher tariff for the limited import tariff inserted in 1816. This shielded businesses from foreign competitors and increased their profits so that they could increase their power. The US government in general has been a more aggressive manufacturing supporter.

4 0
3 years ago
Did social media help the participants in the Occupy movement or the Arab Spring more distinctly?
Lana71 [14]

Answer:

A

the arab Spring,because it ended up having more of an impact that the OccupyMovement

5 0
3 years ago
You write one JNJ February 70 (strike price) put for a premium of $5. Ignoring transactions costs, what is the break-even price
Lera25 [3.4K]

Answer:

$65

Explanation:

The computation of the break even price for this position is shown below:

Break even price is

= Strike price - premium

= $70 - $5

= $65

The stock goes upward to $65 so you lose only $5 but it falls than the stock would be $0

Hence, the break even price of this position is $65

Therefore by applying the above formula we can get the break even price and the same is to be considered

4 0
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