Answer:
D
Explanation:
just did it and got it right
Answer:
HPR = 0.371%
Explanation:
we must first determine the price of the bond in 1 year:
present value of face value = $1,000 / (1 + 6.25%)⁶ = $695.07
present value of coupon payments = $52.50 x 4.87894 (PV annuity factor, 6.25%, 6 periods) = $256.14
market price in 1 year = $951.21
since you bought the bond at face value (market value = YTM), the the holding period return is:
HPR = [(ending price - actual price) + dividends received] / actual price
HPR = [($951.21 - $1,000) + $52.50] / $1,000 = $3.71 / $1,000 = 0.371%
D) all of these...............
Answer:
C
Explanation: I think its C cause it just makes sense lol
Answer:
0.079
Explanation:
Price elasticity of demand using midpoint formula can be calculated as follows
Formula
Elasticity of demand = (change in quantity/average quantity)/(change in price/average price)
Calculation
Elasticity of demand = (600/10,900)/(-2.1/3.05)
Elasticity of demand =-0.055 / -0.688
Elasticity of demand =-0.079
working
Change in price (2-4.1) = -2.1
Average price (2+4.1)/2=3.05
Change in quantity (11,200-10600) = 600
average quantity (11,200+10,600)/2 = 10,900
The elasticity of demand is inelastic as the elasticity is below 1.