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Ann [662]
3 years ago
6

An analyst observes a GUI & Co 6.25%, 5 year semi-annual pay bond trading at 104.764% of par (where par = $1,000). The bond

is callable at 102 in 3 years and putable at 99 in 3 years. #3: what are the bond's current yield and yield to maturity? #4. What's the bond's yield to call and put? EC: Do you expect that the bond would be called and/or put? Why or Why not?
Business
1 answer:
lapo4ka [179]3 years ago
6 0

Answer:

3) the bond's current yield = ($31.25 / $1,047.64) x 2 = 5.97%

the bond's YTM = {31.25 + [(1,000 - 1,047.64) / 10]} / [(1,000 + 1,047.64) / 2] = 26.486 / 1,023.82 = 2.587% x 2 = 5.17%

4) bond's YTC = {31.25 + [(1,020 - 1,047.64) / 6]} / [(1,020 + 1,047.64) / 2] = 26.64 / 1,033.82 = 2.577% x 2 = 5.15%

bond's YTP = {31.25 + [(990 - 1,047.64) / 6]} / [(990 + 1,047.64) / 2] = 21.64 / 1,018.82 = 2.124% x 2 = 4.25%

EC) Since the bond's coupon rate is higher than the market rate, it is being sold at a premium. Since the call price is lower than the market price, they will probably be called.

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Assume an increase in global agricultural production of food due to technology while global population remains the same. Due to
MA_775_DIABLO [31]

Answer:

The equilibrium price falls and quantity increases

Explanation:

When the supply of food rises without a corresponding increase in demand , there would be an excess supply.

When there's excess supply, prices fall and the quantity produced rises.

I hope my answer helps you

6 0
3 years ago
If there is no written designated agency relationship, a client of Meramac Realty has what kind of relationship with Meramac
LuckyWell [14K]

Answer: c. A nonagency relationship with everyone in the office.

Explanation:

For an agency relationship to exist in the eyes of the law, there must be a contract with a written designated agency relationship between the client and Meramac Realty.

With no such contract in existence, the law recognizes no agency relationship between Meramac and any of its affiliates with the client. There is therefore a non-agency relationship with everyone in Meramac.

5 0
2 years ago
Merits of itinerant traders<br>​
frutty [35]

Answer:

Explanation:

1. Less capital: itinerant retailers have to move from one place to another , so they don't have to invest huge capital.  For example: hawkers and paddlers have to buy just a hawker and some amount of goods which they can carry.

2. Services to doorsteps: these retailers provides their goods and services at the doors of the customers.  For example: a vegetable seller sells vegetables at the doors of the customers .

3. Elasticity: the goods they sells are usually perishable in nature and whose substitutes are available in abundance. Therefore, these goods are highly elastic .

4. Economy: the goods which itinerants sells are economically cheaper, which even a low class of society can buy. For example: non-branded goods.

6 0
3 years ago
Blue ridge bicycles uses a standard part in the manufacture of several of its bikes. the cost of producing 45 comma 000 parts is
7nadin3 [17]

Answer:

If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by $21,300

Explanation:

currently Blue Ridge's costs are:

variable costs = $69,000

fixed costs = $69,000

total $138,000

total cost per unit = $138,000 / 45,000 units = $3.0667 per unit

if Blue Ridge decide to outsource the production of the parts:

variable costs = 45,000 x $4 = $180,000

decrease in fixed costs = $69,000 x -30% = -$20,700

total costs = $159,300

If Blue ridge decides to purchase the parts instead of manufacturing them, their total costs will increase by ⇒ $159,300 - $138,000 = $21,300

7 0
3 years ago
Read 2 more answers
By changing a standard from "be nice to customers" to "greet every customer, and if possible by name," a services marketing mana
KiRa [710]

Answer:

a measurable goal

Explanation:

A measurable goal is a part of the S.M.A.R.T goals that brings structure and trackability into your goals and objective.

By greeting and possibly knowing customers names the services marketing manager can to be able to attract more customers not just by understanding what the customer needs but being able to relate available product or services to them.

By so doing the service marketing manager can be able to measure what exactly he/she has achieved after providing the required service to the customer

4 0
3 years ago
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