Answer:
option (C) - 6.11%
Explanation:
Data provided :
Coupon rate one year ago = 6.5% = 0.065
Semiannual coupon rate =
= 0.0325
Face value = $1,000
Present market yield = 7.2% = 0.072
Semiannual Present market yield, r =
= 0.036
Now,
With semiannual coupon rate bond price one year ago, C
= 0.0325 × $1,000
= $32.5
Total period in 15 years = 15 year - 1 year = 14 year
or
n = 14 × 2 = 28 semiannual periods
Therefore,
The present value = ![C\times[\frac{(1-(1+r)^{-n})}{r}]+FV(1+r)^{-n}](https://tex.z-dn.net/?f=C%5Ctimes%5B%5Cfrac%7B%281-%281%2Br%29%5E%7B-n%7D%29%7D%7Br%7D%5D%2BFV%281%2Br%29%5E%7B-n%7D)
= ![\$32.5\times[\frac{(1-(1+0.036)^{-28})}{0.036}]+\$1,000\times(1+0.036)^{-28}](https://tex.z-dn.net/?f=%5C%2432.5%5Ctimes%5B%5Cfrac%7B%281-%281%2B0.036%29%5E%7B-28%7D%29%7D%7B0.036%7D%5D%2B%5C%241%2C000%5Ctimes%281%2B0.036%29%5E%7B-28%7D)
or
= $32.5 × 17.4591 + $1,000 × 0.37147
= $567.42 + $371.47
= $938.89
Hence,
The percent change in bond price = ![\frac{\textup{Final price - Initial price}}{\textup{Initial price}}\times100\%](https://tex.z-dn.net/?f=%5Cfrac%7B%5Ctextup%7BFinal%20price%20-%20Initial%20price%7D%7D%7B%5Ctextup%7BInitial%20price%7D%7D%5Ctimes100%5C%25)
= ![\frac{\textup{938.89-1,000}}{\textup{1,000}}](https://tex.z-dn.net/?f=%5Cfrac%7B%5Ctextup%7B938.89-1%2C000%7D%7D%7B%5Ctextup%7B1%2C000%7D%7D)
= - 6.11%
therefore,
the correct answer is option (C) - 6.11%
Answer:
letter A just my suggestion ☺️☺️
Answer: Categorical; Ordinal
Explanation:
The data that are collected by the airline in this case is referred to as categorical.
The categorical variables are simply referred to as categorical variables because they can be segregated into groups. Also, the measurement of scale that is used is the ordinal scale.
Ordinal data is a kind of categorical data with a set order or scale to it.
Comment
<span>The only way to establish a cause-and-effect relationship between two variables is to conduct an experiment.
First we state a hypothesis and then we make the experiment. The experiment should </span>support, refute, or validate our hypothesis. It is done by making<span> changes in one variable and observing is that might </span>lead to<span> changes in another variable (cause-and-effect).</span>
Answer:
The most suitable answers are,
A) The government promotes competition between businesses.
B) The government owns or partially owns some businesses.
Explanation:
In a mixed market economy, bother government and the private sector plays an important role in the economy. Moreover, government tends to regulate the economy and it's activities to ensure a smooth flow.
In addition, both state owned and privately owned corporations present as well.