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Semmy [17]
3 years ago
15

A bond with a $1,000 face value and an 8 percent annual coupon pays interest semiannually. The bond will mature in 15 years. The

nominal yield to maturity is 11 percent. What is the price of the bond today?
Business
1 answer:
Nimfa-mama [501]3 years ago
4 0

Answer:

The price of the bond today is $784.27

Explanation:

Face value (FV): $1000

Coupon rate: 8% -> counpon received annually (PMT) is $80 (= $1000 * 8%)

Tenor: 15 years

YTM: 11%

Present value = Future Value/ (1+ YTM)^tenor

We can use excel to calculate Present Value of annual payment = PV(Rate,tenor,-PMT) = PV(11%,15,-80) = $575.27

The price of bond today = present value of face value + present value of coupon received annually

= 1000/(1+11%)^15+ 80/(1+11%)^15 + 80/(1+11%)^14+.... +80/(1+11%)^1

= 1000/(1+11%)^15 + $575.27

= $784.27

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The town of Marble Falls has 10 workers, of which 8 were employed and 2 were actively seeking work. After many months of seeking
natita [175]

Answer:

A) 0%

Explanation:

The unemployment rate in the town of Marble Falls refers to the portion of the active population which is not employed

Initially, there were 2 people actively searching for means of livelihood, six weeks down the line, they lost interest in job search, which means that by then, they were no longer in the unemployed category since they have stopped looking for job opportunities.

In essence, when the 2 people left the unemployed category, no one was left, which translated into the unemployment rate for the town of Marble Falls

5 0
3 years ago
Use the information presented in Midwestern Mutual Bank's balance sheet to answer the following questions.
ratelena [41]

Answer:

Answer for task 1: Increase

Answer for task 2: debt

Answer for task 3: -13.33

Answer for task 4: -14.00

Answer for task 5: reserve requirement

Explanation:

<u>Task 1:</u>

In the given question, the owner has borrowed $100 supplement to their existing reserves. Since the owner has borrowed, the value of debt would <u>increase</u>.

<u>Task 2:</u>

<u>Leverage ratio before borrowing:</u>

Leverage ratio = \frac{Total assets}{Capital}

Leverage ratio = \frac{200 + 800+1000}{-150}

Leverage ratio = -13.33

The leverage ratio before borrowing is - 13.33

<u>Task 3:</u>

<u>Leverage ratio after borrowing:</u>

Leverage ratio = \frac{Total assets}{Capital}

Leverage ratio = \frac{2000 + 100}{-150}

Leverage ratio = -14.00

The leverage ratio after borrowing is - 14.00

<u>Task 4:</u>

This would also bring the leverage ratio from its initial value of -13.33 to a new value of -14.00.

<u>Task 5:</u>

<u>Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply.</u>

The option is<u> "b"</u>

When determining how to allocate their assets bankers take into account the reserve requirement.

3 0
4 years ago
Period costs are a.classified as direct labor, direct material, or factory overhead b.not involved in the production process c.f
goldfiish [28.3K]

Answer:

Not involved In the production process

Eg. Selling expenses or advertising expenses

3 0
3 years ago
In Japan, the bureaucracy carries enormous influence and power. In particular, the Ministry of International Trade and Industry
noname [10]

Answer:

When the government has a strong say in what businesses do, two things may happen:

  1. businesses can become corrupt and inefficient,
  2. or the businesses can develop closer cooperation between them and the government that helps them become more efficient.

The later applies to Japan, but also to countries like Chile. Chilean government has signed free trade agreements with virtually every single country in the world, granting Chilean companies huge international markets.

While in the US, even now with President Trump, the government has a relatively small influence in the private sector (except for defense contractors). I believe American corporations have a larger influence on the government, than the influence the government has on them.

3 0
3 years ago
Capital budgeting is: the process of finding the cost to start a new project. the process of deciding which project to do to inc
kompoz [17]

Answer:

the process of deciding which project to do to increase the firm’s value.

Explanation:

Some of the Capital budgeting methods include:

1. internal rate of return- internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

2. Cash pay back period- it is the period it takes to recover the amount invested in a project from its cummulative cash flows.

3. Net present value: net present value is the present value of after tax cash flows from an investment less the amount invested.

I hope my answer helps you

6 0
3 years ago
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