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sesenic [268]
3 years ago
5

A ten-year, inflation-indexed bond has a par value of $10,000 and annual coupon rate of 5 percent. During the first six months s

ince the bond was issued, the inflation rate was 2 percent. Based on this information, the coupon payment after six months will be $_______. A) 250 B) 255 C) 500 D) 510 E) 210 Group of answer choices
Business
1 answer:
Anvisha [2.4K]3 years ago
5 0

Answer:

The correct answer is option (B).

Explanation:

According to the scenario, the given data are as follows:

Par value of bond = $10,000

Coupon rate Annual = 5%

So, Coupon rate semi annual = 2.5%

Inflation rate semi annual = 2%

So, we can calculate the coupon payment for six months by using following formula:

New par value of bonds after inflation = $10,000 + ( $10,000 × 2% ) = $10,200

So, Coupon payment = New par value × Coupon rate semi annual

= $10,200 × 2.5%

= $255

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The most significant conceptual difference between the arbitrage pricing theory (apt) and the capital asset pricing model (capm)
MrRa [10]
<span>is that the capm recognizes only one systematic risk factor.</span>
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3 years ago
Hi Phi Sound Unlimited has a monopoly over the installation of surround sound systems. Hi Phi Unlimited's total revenue from ins
Maru [420]

Answer: $1000

Explanation:

You didn't give the options but let me help out.

From the question, we are informed that Hi Phi Unlimited's total revenue from installing 15 sound systems is $30,000 and its total revenue from installing 18 sound systems is $33,000.

The marginal revenue that is received from selling the 18th sound system would be calculated as:

=($33000 - $30000) / (18 - 15)

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7 0
3 years ago
A company undergoing _____ completely redesigns its work processes, hoping for dramatic improvements in the efficiency and effec
netineya [11]

Answer: Business process re-engineering

Explanation:

Business Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed” – Michael Hammer and James Champy

Business process reengineering is an approach used to improve organizational performance by increasing the efficiency and effectiveness of processes that exist across the organization. In addition to the redesigning of business processes, it also involves the redesigning of associated systems and organizational structures.

5 0
3 years ago
U.S. residents accounted for over 75 percent of cruise ship passengers, and U.S. ports had 8 million passengers leaving on cruis
Elenna [48]

Answer:

e. External opportunity

Explanation:

An  external opportunity is an extension of the market due to some external development outside the industry. In this case, the cruise industry has benefited in a major way due to external developments.

7 0
3 years ago
To be useful for decision making, information should possess the fundamental qualities of relevance and.
Nitella [24]

To be useful for decision making, information should possess the fundamental qualities of relevance and  <u>Faithful representation</u>.

<h3>What is  faithful representation?</h3>

Faithful representation can be defined as the financial accounting concept that stated a company financial position which they present should be correct with what the company has as their financial statement.

It is paramount that a company a financial statement is accurate  to what they present in the financial statement  and  should not be compromise.

Therefore To be useful for decision making, information should possess the fundamental qualities of relevance and  <u>Faithful representation</u>.

Learn more about  Faithful representation here:brainly.com/question/14506917

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2 years ago
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