Answer:
$955.37 per bond
Explanation:
Callable bonds are generally worth less than normal bonds since the call option decreases the value of the bondholder while increases the value of the issuer. Bonds will only be called if the interest rate falls below a certain level and calling them is cheaper (form the issuer's point of view) than keep paying high interest rates.
market price of callable bonds:
- PV of face value = $1,000 / (1 + 5%)¹⁰ = $613.91
- PV of coupon payments = $80 x 7.7217 (PV annuity factor, 5%, 10 periods) = $617.74
- Price of call option = [(1 + 5%)⁵ x $1,000] - $1,000 = $1,276.28 - $1,000 = $276.28
current market price of callable bonds = $613.91 + $617.74 - $276.28 = $955.37
Answer:
b. change in total cost that results from producing one more unit of output.
Explanation:
<em>Marginal cost is the increase in in total cost as a result of producing one more additional unit. It is the extra cost incurred when an additional unit of a product is produced.</em>
Answer:
I will follow all the code of conduct and discipline laid down by the CEO
Answer:
Regular basic saving accounts
Explanation:
Rainy day fund is called a type of basic regular saving accounts. This account contains around 500 dollars to 1000 dollar It is like a payday loan. It is a type of liquid or we can say that it is like cash.
It is best in a bank account. such as saving account to pay the daily basis debts. Here people can access their money very quickly. When it is spent, you can again start to save for the future happening again.
Generally, the Central Bank will reduce the interest rate to allow banks to lend money at a lower rate, thus infusing the macro-economy with funding on medium to large ticket items.
