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iren2701 [21]
3 years ago
7

Laurel, Inc., and Hardy Corp. both have 7 percent coupon bonds outstanding, with semiannual interest payments, and both are pric

ed at par value. The Laurel, Inc., bond has four years to maturity, whereas the Hardy Corp. bond has 15 years to maturity. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of these bonds
Business
1 answer:
cestrela7 [59]3 years ago
3 0

Answer:

Laurel bond % change = -6.6%

Hardy bond % change = -16.3%

Explanation:

current bond price $1,000

interest rate 7%

Laurel bond matures in 4 years, 8 semiannual payments

Hardy bonds matures in 15 years, 30 semiannual payments

if market interest increases to 9%

Laurel bond:

$1,000 / (1 + 4.5%)⁸ = $703.19

$35 x 6.59589 (annuity factor, 4.5%, 8 periods) = $230.86

market price = $934.05

% change = -6.6%

Hardy bond:

$1,000 / (1 + 4.5%)³⁰ = $267.00

$35 x 16.28889(annuity factor, 4.5%, 30 periods) = $570.11

market price = $837.11

% change = -16.3%

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A..Based on the information given the expenses that might qualify as deductions for AGI(ADJUSTED GROSS INCOME) is TUITION

The amount of the expenses that might

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Add Books and course materials $1,500

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3 years ago
A broker's records must be available for inspection during business hours. who inspects the records?
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Alec just received his Florida broker license. Assuming the Real Estate Recovery Fund balance is at $400,000, how much of his li
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The amount of Alec's license fee that went into the Real Estate Recovery Fund, which just received his Florida broker license, is <u>$3.50.</u>

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What is the real estate license fee?</h3>

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Thus, the amount of Alec's license fee that went into the Real Estate Recovery Fund, which just received his Florida broker license, is <u>$3.50.</u>

Learn more about real estate license fees at brainly.com/question/26067240

8 0
2 years ago
An employee earns $24 per hour and 1.5 times that rate for all hours in excess of 40 hours per week. If the employee worked 50 h
Anettt [7]

Answer:

a. Gross pay = $1,320

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Explanation:

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