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.
Answer: Planning function of management
Explanation: Planning function of management is concerned with setting the objectives of future performance and to evaluate the need of resources required to achieve those objectives.
In the given case, uber wants to manage their competitive advantage. Therefore the management should plan their policies in such away that company can maintain their traits that are giving them advantage in market over others.
Strategic sourcing involves the business to business purchases that involved long term contracts through negotiations.
Given an incomplete sentence related to B2B purchases.
We are required to fill the sentence with appropriate term related to B2B purchases.
B2B purchases are the purchases which happens between two or more businesses.
Long term contracts are the contracts that involve huge time in completion.
The term which is suitable for the B2B purchases involving long term contracts developed through negotiations is strategic sourcing.
Strategic sourcing is basically a procurement process that connects data collection, spend analysis,market research , negotiation and contracting.
Hence strategic sourcing involves the business to business purchases that involved long term contracts through negotiations.
Learn more about strategic sourcing at brainly.com/question/14652019
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<span>An investor invests 70% of her wealth in a risky asset with an expected rate of return of 15% and a variance of 5%, and she puts 30% in a Treasury bill that pays 5%. Her portfolio's .... To form a complete portfolio with an expected rate of return of 11%, you should invest ______ of your complete portfolio in Treasury bills.</span>
Answer:
1.
Explanation:
IT WOULD BE GOOD TO PLANT CITRUS IN THE AREA WHERE AVALIABILITY OF SPRINKLERS IS AMPLE.
THEREFORE,THE ROOTS OF THE PLANTS WOULD GET AMPLE OF WATER FOR THE GROWTH OF PLANT.
