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kondor19780726 [428]
3 years ago
11

A portfolio manager is considering the purchase of a bond with a 5.5% coupon rate that pays interest annually and matures in thr

ee years. If the required rate of return on the bond is 5%, the price of the bond per 100 of par value is closest to:
Business
1 answer:
dmitriy555 [2]3 years ago
7 0

Answer:

The price of the bond is closest  $101.36  

Explanation:

It is noteworthy that a rational investor pays for a bond today the cash flows derivable from the bonds in future discounted to today's terms.

The future cash flows comprise of the yearly coupon interest of $5.5(5.5% *$100) for 3 years as well as the repayment of the principal $100 at the end of year 3.

To bring the cash inflows today's term, we multiply them  them by the discounting factor 1/(1+r)^N , where is the yield to maturity of 5% and N is the relevant the cash flow is received.

The discounting is done in attached spreadsheet leading $ 101.36  present value today.

Download xlsx
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KiRa [710]
<h2>Question:</h2>

Q1. This organizational structure violates the unity of command principles because of dual reporting relationship.

Q2. It is a collection of independent, mostly single function enterprises that collaborate on a good or service.

<h2>Answer:</h2>
  1. <u>C</u><u>.</u><u> </u><u>Matrix</u><u> </u><u>Organization</u><u> </u>
  2. <u>A</u><u>.</u><u> </u><u>Divisional</u><u> </u><u>Organization</u><u> </u>
<h2>Explanation:</h2>

That's my opinion and I hope it helps ^_^

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3 years ago
4. Tom Busby owes $20,000 now. A lender will carry the debt for four more years at 8 percent interest. That is, in this particul
bezimeni [28]

Answer:

Tom Busby

His annual payment will be:

= $4,091.64

Explanation:

a) Data:

Loan = $20,000

Interest on loan for 4 years = 8% per annum

Amount of loan after 4 years = $27,200 ($20,000 * 1.360)

Payment period = 12 years

Interest rate during payment period = 11%

b) From online finance calculator:

You will need to pay $4,091 every year for 12 years to payoff the debt at 11% interest.

Monthly Payment $340.97

Annual Payment  $4,091.64

Time Required to Clear Debt 12.00 years

Total of 144 or 12 Payments = $49,099.25

Total Interest $21,899.25

8 0
3 years ago
Pollution and raw material shortages constitute immediate threats to some firms buy are often opportunities for other firms. The
castortr0y [4]

Answer:

Yes

Explanation:

  1. Competitors will have to find out other options on recycling materials what opens opportunities for the recycling and and other green industry. like recycling Aluminium is cheaper than producing it from Bauxite, for example.
  2. Shortage of raw material and pollution costs will change another macro environment factor as legal and political forces. What definitely changes the strategy for these companies. This can also be challenging since it may add other unplanned costs for each company.
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You are using earned value analysis to track your project's progress. In your project, earned value is higher than planned value
Inessa [10]

In your project, the earned value is greater than the planned value. This means the project is ahead of schedule and under budget.

<h3>What is project management?</h3>

It is the set of strategies and methods used by the project leader so that all stages of the project occur as planned, that is, techniques for achieving the project objectives, reducing negative risks and using the stipulated budget and schedule.

Therefore, it is essential that the project manager is monitoring all stages of the project, reducing unnecessary costs and integrating the team to increase productivity and meet the schedule.

Find out more about project management here:

brainly.com/question/6500846

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5 0
2 years ago
For observation to be a useful skill, what are 2 key points to avoid "cluttering" your mind with unimportant information?
julsineya [31]

When you observe information, it's important to make sure you aren't cluttering your mind with unimportant information. Unimportant information refers to anything that you are observing while learning that won't matter overtime or, doesn't directly pertain to your situation. Observation can only be a useful skill if what you are observing you remember and can do after watching on your own.

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