1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
NeX [460]
3 years ago
10

Consider two bonds, a 3-year bond paying an annual coupon of 3%, and a 20-year bond, also with an annual coupon of 3%. Both bond

s currently sell at par value. Now suppose that interest rates rise and the yield to maturity of the two bonds increases to 6%. a. What is the new price of the 3-year bond?

Business
1 answer:
BabaBlast [244]3 years ago
8 0

Answer:

New price = $919.81

Explanation:

Computation of the given data are as follows:

Let Face value (FV) = $1,000

YTM (Rate ) = 6%

Time period (Nper) = 3 years

Coupon rate = 3%

Coupon payment = 3% × $1,000 = $30

So, we can calculate the new price by using financial calculator.

The attachment is attached below:

New price = $919.81

You might be interested in
Jenna would like to work as a computer programmer. While in college, Jenna worked in a bookstore, where she eventually moved up
TiliK225 [7]
<span>the answer d Jenna is incorrect; working in the bookstore gave her the management experience valuable in different fields.
Even though jenna's decision is correct in quitting her job in the bookstore and start to pursue her dream, her view on her previous job is wrong.
With ther past experience, Jenna now has additional skills in leading team members which would be extremely useful for her next job.</span>
4 0
3 years ago
Read 2 more answers
According to the classical theory of inflation, an increase in the money supply would cause _____ to shift to the _______. Outpu
ASHA 777 [7]

Answer:

According to the classical theory of inflation, an increase in the money supply would cause aggregate demand curve to shift to the right. Output would increase and price level would increase. However, in the long run, would shift to the left. Output would reduce and the price level would continue to increase.

Explanation:

Inflation occurs in an economy when the overall price level increases and the demand of goods and services increases.

the classical theory of inflation explains how the aggregate price level gets determined through the interaction between money supply and money demand.

Tn the classical theory of inflation:

  • Money is considered the asset which is utilized by people to purchase goods and services on a regular basis.
  • Their view is that the general price is determined by the total demand for and total supply of goods just as the price of any good is determined by the forces of demand and supply for it.
  • According to them inflation is a situation caused by excess demand, in which the total demand for goods as measured by the volume of money offered is in excess of supply of goods at prevailing prices.

5 0
3 years ago
Read 2 more answers
According to the eNotes, when a potential customer sees the line, but never joins the line because they think it looks too long
Natali5045456 [20]

Answer:

Balking

Explanation: Balking means the tendency of an individual not to do something or let something happen due to the circumstances he /she feels is not conducive for he/she.  if you balk at something, then you definitely do not want to do it

5 0
3 years ago
Uncertainties such as natural disasters are: Select one: a. Estimated liabilities because the amounts are uncertain. b. Not cont
Dovator [93]

Answer:

d. Disclosed because of their usefulness to financial statements.

Explanation:

A <em>liability</em> is a present obligation (Legal or Constructive) of an Entity that arises as a result of a past event and the settlement of which will result from an out flow of cash from the entity.

One class of Liability that relate to the case is a <em>Provision</em>.A provision is a liability whose amount can be determined with certainty.

A liability whose amount can not be determined with certainty is known as a <em>Contingent liability</em>.A contingent liability is not presented in the financial statements but is  only disclosed in the Financial Statements.

6 0
3 years ago
Becky’s daughter was in the sixth grade and growing very fast. In early fall, her daughter tried on her soccer cleats from the s
olga nikolaevna [1]

Answer:

Purchase decision process

Explanation:

A purchase decision process is defined as the thought process that goes into buying a certain product. This thought process include the buyer identifying a need, creating options, seeing different brands and then finally buying the product.

Purchase decision could be either minor or major. Purchasing things like tea, toothpaste, etc require minor decision processes while buying a house or piece of land involves major decision processes.

As in the question, Becky now has to under purchase decision process as to buying soccer cleats for her daughter. This decision will involve buying a brand that won't shrink as a result of weather changes or wear out easily, etc

I hope this helps.

5 0
3 years ago
Other questions:
  • C. assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed or
    11·1 answer
  • Which of the following statements is FALSE? a. Cause-and-Effect forecasting assumes that one or more factors are related to dema
    14·1 answer
  • Approximately how many people in the united states are over the age of 100?
    13·1 answer
  • Columbus Company owns 25% of Zanesville Inc. and accounts for the investment using the equity method. During the year, Zanesvill
    9·1 answer
  • How many times is income from a c corporation taxed if a retirement fund is the owner of the corporation's' stock?
    8·1 answer
  • When you hire an independent contractor, you don't have to pay the contractor's
    7·2 answers
  • A new product innovation that is consistent with the values and experiences of potential adopters and attracts new buyers at a r
    11·1 answer
  • The upper-level management of Nationwide Sales Corporation wants to fire Andy because he is a nonproductive employee. Using a ut
    9·1 answer
  • Jeffrey Inc., an animation company, asks job applicants to fill out a form requesting information about any hereditary illness o
    8·1 answer
  • The​ product/market expansion grid is a tool that allows marketers to identify growth opportunities. Of the​ following, which re
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!