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faust18 [17]
3 years ago
9

A 3-year annual coupon bond has coupons of $12 per year starting one year from now and matures in 3 years for the amount $100. T

he yield to maturity is 11.8% (annual effective). Find the Macaulay duration of the bond.
Business
1 answer:
Ganezh [65]3 years ago
4 0

Answer: Macaulay Duration = 2.6908154485 = 2.69

Explanation:

Macaulay Duration = Sum of Cash flows Present Value/ current bond price

Cash flows: year 1 = $12

Cash flows: year 2 = 12

Cash flows: year 3 = 100 + 12 = 112

Sum of Cash Flow PV = (1×12÷ (1.118)^1) + (2×12÷ (1.118)^2) +(3×112÷(1.118)^3)

Sum of Cash Flow PV = 270.37857712

Current Bond Price or Value = Face Value/ (1+r)^n + PV of Annuity

Current Bond Price or Value = 1000/ (1.118)^3 + (30×(1 - (1+0.118)^-3)/0.118

Current Bond Price or Value  = 100.48202201

Macaulay Duration = 270.37857712 ÷ 100.48202201

Macaulay Duration = 2.6908154485 = 2.69

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What are the four levels of managers?
photoshop1234 [79]

Answer:

Top level managers

Middle level managers

First level mangers

Explanation:

Management involves the process of planning, organizing, directing and controlling. These functions are carried out by the top level managers, middle level managers and first level managers.

Top level managers are those in charged of setting the long term goal of a company, they are basically the board of directors of a company.

The middle managers are the engine of a company, they push the line managers to work and supervices their work.

The first level managers are also known as floor managers, they oil the engine of the company.

8 0
3 years ago
Which of the following is a characteristic of a certificate of deposit?
valentinak56 [21]

Answer:

C). It requires that the funds be kept in the account for a minimum fixed period of time e.g. 90 days

<u>Multiple- choices</u>

A).  You have to earn at least $100,000 in salary to be allowed to buy a CD

B).  It is just a different name for a savings account

C). It requires that the funds be kept in the account for a minimum fixed period of time e.g. 90 days

D). Only large banks offer them

Explanation:

Banks and other financial institution offer certificates of deposit (CD) saving account to customers who intend to limit the number of withdraws. This type of savings account pays a higher interest rate than the regular savings account. A customer wishing to open this account agrees with the bank on the duration that they want to save the money.  Withdrawals can only be made after the agreed period lapses. Should the customer demand for their money before the end of the agreed period,  they may get penalized by the banks.

8 0
3 years ago
Riverside Ranch is a horse breeding facility. Dynasty Stables is a customer looking for a new stallion for its breeding program.
marshall27 [118]

Answer: a. an express warranty

Explanation:

An EXPRESS WARRANTY refers to spoken or written promises or guarantees made by the seller about the performance of a product when negotiating with a buyer.

For example, "this product is guaranteed against wear and tear for at least 2 years".

Roy Mustang in this scenario made an explicit promise about the effectiveness of the Stallion and as such that constitutes an EXPRESS warranty.

It is worthy of note that for Express Warranties, the word Warranty does not even need to be included for the promise to be a warranty.

5 0
3 years ago
Which of the following best describes a surplus?
muminat

Answer:

C. there is more supply than demand

Explanation:

surplus means extra so there's more in supply than demand

7 0
3 years ago
Read 2 more answers
_____ is defined as the tradeoff (or relationship) of the quality of the purchase received, compared to the price paid and other
emmasim [6.3K]

Answer:

Value

<h3>What are the value definition and examples?</h3>
  • Value is the worth of goods, services, or money of an object or person.
  • An example of value is the amount given by an appraiser after appraising a house.
  • An example of value is how much a consultant's input is worth to a committee.

To learn more about it, refer

to brainly.com/question/25689052

#SPJ4

5 0
2 years ago
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