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DerKrebs [107]
3 years ago
9

Consider a bond with the following characteristics. Par: $1,000 Two coupon payments per year (i.e., coupons are paid semi-annual

ly) Coupon rate: 6.00% Years to maturity: 10 Bond price: $1,000 Suppose that the annual market interest rate for this bond jumps up by 1%. What is the new bond price?
Business
1 answer:
MAXImum [283]3 years ago
5 0

Answer:

The new price of the bond is $928.94

Explanation:

Initially the bond's price is equal to its par value which means the coupon rate on bond and the market interest rates are the same i.e. 6%.

Th bond's price is calculated as the sum of the present value of the annuity of interest payments by the bond and the present value of the face value of the bond that will be received at maturity. The discount rate used to calculate the present values is the market interest rate.

As the bond is a semiannual bond, we will use the semi annual coupon payment, the semi annual percentage of the annual rate of interest on market and the number of semi annual periods outstanding.

Semi annual coupon payment = 1000 * 0.06 * 6/12 = $30

Number of semiannual periods till maturity = 10 * 2 = 20 periods

New market interest rate = 6 + 1 = 7% annual

New semi annual market interest rate = 7% / 2 = 3.5%

Price of bond =  30 * [ (1 - (1+0.035)^-20) / 0.035 ] + 1000 / (1+0.035)^20

Price of bond = $928.938 rounded off to $928.94

We used the present value of annuity ordinary formula for preset value of interest payments and the normal present value of principal formula for the face value.

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Vikki [24]

Answer:

Hector does not commit sexual harassment against Kylie when he asks her out. It is a one time event, and he does not push the issue. Kylie does not commit sexual harassment when she refuses Hector's proposal for a date. She does not demean him. Kylie does commit sexual harassment when she brings the incident up in the workplace. She speaks disparagingly of Hector's sexuality and it gets back to him. He can bring a sexual harassment claim against Kylie through his company.

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2 years ago
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The government wants to set the socially optimal level of nitrogen runoff, and government regulators believe that the actual mar
Lena [83]

Answer:

Hello your question is incomplete attached below is the complete question

Explanation:

Dead weight loss = 0.5 [( Δp ) * ( ΔD ) ]

D = DEMAND

P = PRICE

DWL with quota = 0.5 [ ( $10 -$6 ) * (12 - 8 ) ]

                           = 0.5 ( 4*4 ) = $8

DWL with pigouvian tax  = 0.5 [ ($10- $6 )*(9 - 8 ) ]

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6 0
2 years ago
_____ is a practice where a store sends coupons to a customer, who has already bought a product from the store, for a more expen
Kaylis [27]

<em>Answer:</em>

<em>Upselling   </em><em>               </em>

<em>Explanation:</em>

<em>Upselling: </em><em>The term "upselling" is described as a specific sales technique in which a seller generally induces different customers to buy or purchase items that are considered as more expensive, upgrades or any other "add-ons" while making an effort to create a profitable sale. </em>

<em>In other words,</em><em> it is referred to as a practice or an effort to encourage various customers to buy high-end products. This is a method of persuading customers.</em>

<em>As per the question, the given statement signifies "upselling".</em>

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3 years ago
Supervisors are apt to be directly involved in which activities related to human resources? (Select all that apply) Multiple sel
sergij07 [2.7K]

Supervisors are apt to be directly involved in  activities related to human resources which includes job analysis and design, recommendation of pay increases, performance appraisals, and  employee training.

<h3>What is Human Resources activities?</h3>

Human resource activities refers to all the activities related with manpower in a organisation. These includes recruitment, selection, training and development and performance appraisal.

A supervisor refers to a person who take all the administrative in charge within a company. He analyze and evaluate the performance of each employee and help them in involving in the activities related to human resources.

The responsibility of supervisor includes the needs of organisation, checking the performance of employee and provide them direction and support and encourage communication between employees and employer.

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4 0
1 year ago
The owner of a leased property conveys possession of the property to the tenant providing them with uninterrupted us of the prop
Harrizon [31]

Answer:

Quiet enjoyment

Explanation:

Quiet enjoyment is a clause in lease agreement that provides a guarantee that the tenant will occupy the property in peace without interference from any other claimants or the landlord.

For example this clause protects a tenant from being removed from a property by someone of higher rank or authority like an agent.

The law recognises quiet enjoyment even when it is not stated explicitly in a lease agreement. It is assumed that every tenant has a right to quiet enjoyment

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