A 4% S/A coupon bond with 4 coupons remaining has a BEY of 8.00%, is mathematically given as
DP=95.696. Option D is correct
<h3>What is the dirty price of this bond?</h3>
Generally, dirty price is simply defined as It's important to note that a "dirty price" is simply a bond pricing quotation that takes into account both the coupon rate and any interest that has already accumulated on the bond.
In conclusion, Dirty price
DP = (Clean price + interest Accrued)
Therefore
DP=0.80*(4%*100/2)+2*(1-(1+4%)^(-3.20))/(4%)+100/(1+4%)^(3.20)
DP=95.696
CQ
A4% S/A coupon bond with 4 coupons remaining has a BEY of 8.00%. You buy the bond a little over a month before you get the first coupon. Specifically, the fraction of the 6-month period that has already elapsed is 0.80.
Calculate the dirty price of this bond.
O 81.370
85.216
93.471
o 95.696
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Answer: Diversifies risk
Explanation:
The main purpose of having a portfolio is to be able to diversify risk so that a total loss is not made if things do not go well. As such, well diversified portfolios are able to reduce their unsystematic risk.
Individual stock on the other hand, cannot be diversified and so have unsystematic risk which makes their standard deviations(risk) higher.
Answer:
Theoretically, the bank should be immune to bank runs and financial crises. A narrow bank just receivers deposits and manages them. It does not borrow money, so the deposits should be safe and available when required by the customers. The problem with this type of banks is that the only way they can make a profit is by charging depositors a fee instead of paying interest rates.
Explanation:
<h3>Hello there!</h3>
Your question asks what Kellogg's is attempting to do.
<h3>Answer: Reposition its product</h3>
The reason why "reposition its product" is the correct answer because Kellogg's is trying to reposition their product in order to make sales. Frosted Flakes was a big time thing for kids, due to the fact that advertisements involved children since Kellogg's target audience were children. Frosted Flakes were pretty much meant for children. Since the product was meant for children, Kellogg's left the people that actually buy the cereal--adults--out of the scene.
Kellogg's releasing advertisements of adults saying how much they loved Frosted Flakes allows viewers to have a thought of going to the store and getting some Frosted Flakes. With the advertisement, they're also trying to target adults because there are a lot of adults in this world, and if they can get adults to buy their product, then their sales will go big. Their goal for the advertisement is to get more sales for the Frosted Flakes product, and they're doing this by having a target audience of adults.
<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3><h3 />
Answer:
c. Correctly ignored a sunk cost
Explanation:
The $50 he spent on the ticket is a sunk cost. Independently of his decision (go to the play or go with Vicky), the cost is already done.
He decide to go to the concert beacuse he prefers it than go to the play. He maximizes his utility, as he would not recover the $50 in any way. In the utility calculation, the sunk cost has no influence.
He has correctly ignored a sunk cost, not letting it to influence in his decision.
