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
stock sells for $100 rights-on, and the subscription price is $90. Ten rights are required to purchase one share. Tomorrow the s
m_a_m_a [10]

Answer:

$99.09

Explanation:

Calculation for What is Tricki's expected price when it begins trading ex-rights

Using this formula

Expected price=Stock rights-on- [ (Stock rights-on-Subscription price)÷(10 rights+ One share)]

Let plug in the formula

Expected price=$100-[($100-$90)÷(10+1)]

Expected price=$100-($10÷11)

Expected price=$100-$0.91

Expected price=$99.09

Therefore Tricki's expected price when it begins trading ex-rights will be $99.09

3 0
3 years ago
Agreement and disagreement among economists
r-ruslan [8.4K]

Answer and Explanation:

The disagreement arise between this economist is due to the differences in the scientific judgements as they disagree due to the various scientific judgements. And, despite their differences, the proposition of two economists should be chosen at random as the tariff and import quotas normally decreased the economic welfare as it always result in deadweight loss and in this both economist should be agree for the same

4 0
2 years ago
What is the current yield for a $1000 corporate bond that pays 8.0 percent and has a current market value of $870?
alexandr402 [8]

The current yield for a corporate bond = 9.19 %

Calculation :

Amount of annual interest = face value × rate of interest

                                         =  $1000 × 8.0

                                           = 8000%

Then, Current yield = amount of annual interest / current price

                                 = 8000%  ÷ $870

                                = 9.19 %

Do corporate bonds pay interest?

Corporate bonds pay interest semi-annually, which suggests that, if the coupon is five percent, each $1000 bond can pay the bondholder a payment of $25 every six months--a total of $50 per year

What Is the Current Yield?

Current yield is an investment's annual income (interest or dividends) divided by the present price of the security. This measure examines the present price of a bond, instead of looking at its face value.

Learn more about current yield :

brainly.com/question/12909555

#SPJ4

4 0
1 year ago
Unemployment benefits are
Nina [5.8K]
Reduced by an amount that is equal to an individual's income from other sources
6 0
3 years ago
To determine whether their employees are doing their jobs efficiently and effectively, managers use:_______
statuscvo [17]

In order to find out if employees are doing their job as they should in an efficient and effective manner, managers use performance management.

<h3>What is performance management?</h3>

This refers to anything that employers do in order to find out how employees are doing as regards helping the company to meet its organizational goals.

These methods go beyond trying to find out how employees are doing as regards work, but also tries to suggest ways that the employees can get better at what they do.

In order to do this, the employees need to be monitored and the process they use to go about their jobs need to be studied. They are then juxtaposed with industry best practicies to make them better.

Performance management is therefore hugely important in companies as it ensures that they meet organization objectives.

In conclusion, this is performance management,

Find out more on performance management at brainly.com/question/24673911

#SPJ1

7 0
2 years ago
Other questions:
  • According to the text, the most logical budget-setting method in advertising is the ________ method. objective-and-task affordab
    10·1 answer
  • Why was it sometimes difficult to balance a checking account to a statement?
    5·1 answer
  • Xavier Co. wants to purchase a machine for $37,900 with a four year life and a $1,000 salvage value. Xavier requires an 8% retur
    11·1 answer
  • Spence wants to have $176,000 in 7 years. He plans to make regular savings contributions of $13,100 per year for 7 years, with t
    5·1 answer
  • How might a recent college graduate's investment portfolio differ from someone who is nearing retirement
    7·2 answers
  • On July 1, 2021, an interest payment date, $149000 of Bonita Industries bonds were converted into 2970 shares of Bonita Industri
    10·1 answer
  • Lang Warehouses borrowed $178,960 from a bank and signed a note requiring 8 annual payments of $28,819 beginning one year from t
    15·1 answer
  • 4. Which of the following financial statements is the main tool for figuring out how much
    9·2 answers
  • In each of the following situations, indicate whether the 50% reduction for meals applies.
    15·1 answer
  • If you beat the market with inside information, you have violated the concept of ___ form efficiency.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!