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Nataly_w [17]
3 years ago
6

Assume that the six-month Treasury spot rate is 1.6% APR, and the one-year rate is 2% APR, both compounded semiannually. What is

the price of a one-year $1000 par Treasury bond with 2% coupons
Business
1 answer:
damaskus [11]3 years ago
4 0

Answer:

Explanation:

Coupon rate = 2%, Par value = $1000

Treasury bond pays coupon semi annually

Coupon payment = (Coupon rate * par value) / 2 = (2% x 1000) / 2 = 20 / 2 = $10

Cash flow in six months = Coupon payment = $10

Cash flow in 1 year = Coupon + par value = 10 + 1000 = 1010

Discount rate for cash flow in 6 months = six-month Treasury spot rate i= 1.6% APR

Semi annual discount rate for cash flow in 6 months = 1.6% / 2 = 0.8%

Discount rate for cash flow in 1 year = 1 year Treasury spot rate i= 2% APR

Semi annual discount rate for cash flow in 1 year = 2% / 2 = 1%

Price of Treasury bond = present value of cash flow in six months discounted at semi annual discount rate + Present value of cash flow in 1 year discounted at semi annual discount rate

Price of Treasury bond = 10 / (1+0.80%) + 1010 / (1+1%)^2 = 10/1.0080 + 1010 / (1.01)^2 = 9.9206 + 990.0990 = 1000.02

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Faye works as an administrator and receptionist for Garage Door Store. The store withholds federal taxes from Faye's pay, and co
anastassius [24]

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c. ​an employee and agent.

Explanation:

Based on the information provided within the question it can be said that with respect to sales at those locations homer is both an employee and agent. This is because he works for a company, therefore making him an employee. But at the same time he is authorized to act on behalf of Garage Door therefore making him an agent.

4 0
3 years ago
A marketing representative wants to estimate the proportion of people in a state who like the new design on the packaging of a c
Lelu [443]

Answer:

The conditions for creating a confidence interval for the population proportion have been met.

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In this problem, we have that:

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B) A manufacturing unit A makes 15 colour television
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<em> 7*|15 80 | =|105 560|</em>

<em> 7*|15 80 | =|105 560||40 100| |280 700|</em>

<em> 7*|15 80 | =|105 560||40 100| |280 700|HERE'S YOUR ANSWER </em>

<em> 7*|15 80 | =|105 560||40 100| |280 700|HERE'S YOUR ANSWER ◌⑅⃝●♡⋆♡MICKZMINNZ♡⋆♡●⑅◌</em>

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eBookPrintReferences Check my work Check My Work button is now enabledItem 180Item 180 Ouelette Corporation's relevant range of
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Answer:

$22,800

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Calculation for the total amount of indirect manufacturing cost incurred

First step is to find the fixed manufacturing overhead portion

Fixed manufacturing overhead portion=$3.00 *5000 units

Fixed manufacturing overhead portion =$15,000

Second step is to calculate the indirect manufacturing cost if 6,000 units are produced using this formula

Indirect manufacturing cost =Fixed manufacturing overhead portion

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Indirect manufacturing cost=$22,800

Therefore the total amount of indirect manufacturing cost incurred is closest to $22,800

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