1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
joja [24]
3 years ago
15

Both Bond Sam and Bond Dave have 7 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has three ye

ars to maturity, whereas Bond Dave has 16 years to maturity. a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price of Bond Sam and Bond Dave? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. If rates were to suddenly fall by 2 percent instead, what would be the percentage change in the price of Bond Sam and Bond Dave? (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
3241004551 [841]3 years ago
4 0

Solution:

Each bonds have a 7 percent coupon limit. Since sales are also equivalent to 7 percent with par with YTM. The age of Bond Sam is three years and the maturity of Bond Dave is sixteen. At a sudden increase of 2%, interest rates. Decide the shift in both bond price by percentage.

Bond Sam:

Bond Value = pv(rate,nper,pmt,fv)  

Rate = (7%+2%)* 1/2 = 4.5%

nper = 3*2 = 6

fv = 1000

pmt = 7%*1000*1/2 = $35

Bond Value = -pv (4.5%,6,35,1000)

Bond Value =$936.65

Percentage change in the price of Bond Sam = (936.65-1000)/1000 Percentage change in the price of Bond Sam = -6.33%  

Bond Dave:

Bond Value = pv (rate, nper, pmt, fv)

Rate = (7%+2%)*1/2 = 4.5%

nper = 16*2 = 32

fv = 1000

pmt = 7%*1000*1/2 = 35

Bond Value = pv (4.5%,32,35,1000)

Bond Value = $854.66

Percentage change in the price of Bond Dave = (854.66-1000)/1000 Percentage change hi the price of Bond Dave = -14.53%  

You might be interested in
Paano nakakatolong ang mga estruktura ng pamilihan sa pagpapaunlad ng ating bansa​
kicyunya [14]

Answer:

<h3><u>PARA MAS LALO PANG GUMANDA ANG MGA STRAKTURA SA BANSA AT MARAMING MAIGANYUHAN ANG MGA TAO. NAKAKATULONG ITO SA MGA TAONG MAY TRBAHO NA MAY MGA HANAP BUHAY NA MAS LALO PANG LALAGO.</u></h3>

<u>h</u><u>o</u><u>p</u><u>e</u><u>f</u><u>u</u><u>l</u><u>l</u><u>y</u><u> </u><u>h</u><u>e</u><u>l</u><u>p</u><u>:</u><u>)</u>

Explanation:

  • <u>#</u><u>C</u><u>a</u><u>r</u><u>r</u><u>y</u><u>O</u><u>n</u><u>L</u><u>e</u><u>a</u><u>r</u><u>n</u><u>i</u><u>n</u><u>g</u>
5 0
3 years ago
Selzik Company makes super-premium cake mixes that go through two processing departments—Blending and Packaging. The following a
solmaris [256]

Answer:

Please see answers below

Explanation:

We know that ;

Beginning work WIP 10,000

Units started 170,000

a. Ending WIP 20,000

Material 100% complete = 20,000 EU

Conversion 100% complete = 8,000 EU

b. Units completed = 160,000

Units started and completed = 150,000

Beginning WIP costs;

Materials cost $8,500

Conversion cost $4,900

Costs added during the period;

Materials cost $139,400

Conversion cost $244,200

Equivalent units for July;

EU for materials = 170,000

EU for conversion = 7,000 + 150,000 + 8,000 = 165,000

Costs per EU:

Materials = $139,400 / 170,000 = $0.82 per EU

Conversion = $244,200 / 165,000 = $1.48 per EU

c. Total costs;

Ending WIP = [20,000 × $0.82] + [8,000 × $1.48] = $28,240

Units transferred out = [$383,600 - $28,240] + $8,500 + $4,900 = $368,760

d. Therefore,

Costs to be accounted for ;

Beginning work in process $13,400

Cost added $383,600

Total costs to be accounted for $397,000

Also,

Costs account ted for are as follow

Units transferred out $368,760

Ending WIP $28,240

Total costs accounted for $397,000

5 0
3 years ago
The balance sheet for the partnership of Nina, Pinta, and Santa Maria at January 1, 2017 follows. The partners share profits and
ANTONII [103]

Answer:

$115,714

Explanation:

If the partnership's assets were $540,000, and if we assume that there are no liabilities, then:

Nina's capital account should have been 3/10 x $540,000 = $162,000

Pinta's capital account should have been 2/10 x $540,000 = $108,000

Santa Maria's capital account should have been 5/10 x $540,000 = $270,000

If they decided to pay Nina only $135,000 for her partnership stake, then the remaining partnership's assets were $405,000. This means that the partnership's capital account should be divided as follows:

Pinta's capital account should have been 2/7 x $405,000 = $115,714

Santa Maria's capital account should have been 5/7 x $405,000 = $289,286

3 0
2 years ago
For each activity, select the impact on the accounting equation. After doing all transactions, ensure that the accounting equati
soldi70 [24.7K]

Answer:

<u>                                      Assets       =         Liabilities     +       Equity             </u>

1)                                  15,000                          0                       15,000

2)                                  9,000                      9,000                      0

3)                                   1,200                        1,200                     0

4)                                  2,400                        2,400                     0

5)                                 (12,000)                         0                         0

                                     12,000                         0                         0

6)                                   3,000                           0                      3,000    

7)                                   (4,000)                      (4,000)                   0

8)                                   (2,400)                      (2,400)                   0

9)                                        0                           (1,200)                  1,200

10)                                  (1,000)                            0                     (1,000)

TOTALS                       23,200                       5,000                  18,200

5 0
3 years ago
Most processing in a computer takes place in a component called the _____ processing unit.
Lerok [7]
<span>Most processing in a computer takes place in a component called the __CPU___ processing unit.</span>
3 0
3 years ago
Other questions:
  • Creative Sound Systems sold investments, land, and its own common stock for $33.0 million, $14.7 million, and $39.4 million, res
    10·1 answer
  • The unemployment rate of: a. teenagers is much higher than that of adults. b. women greatly exceeds that of men. c. whites is ro
    9·1 answer
  • The income effect causes quantity demanded to​ ________ when the price of a normal good​ decreases, and causes quantity demanded
    10·1 answer
  • Global Communications has a 7 percent, semiannual coupon bond outstanding with a current market price of $1,023.46. The bond has
    14·1 answer
  • Whenever possible, write on a subject _____.
    7·1 answer
  • What type of control focuses on measuring a company’s products territories, customer groups, segments, trade channels, and order
    6·1 answer
  • Professional social media sites can also help employers find you. When you create an account, you describe your work history in
    8·2 answers
  • Question 2 of 10
    7·2 answers
  • Consumer A and Consumer B live in the same state where a sales taxes increase of 1% on all items has been enacted Consumer A has
    6·2 answers
  • A recent annual report for FedEx contained the following data:
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!