1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
frozen [14]
3 years ago
5

Consider a bond (with par value = $1,000) paying a coupon rate of 9% per year semiannually when the market interest rate is only

6% per half-year. The bond has three years until maturity. Find the bond's price today and 6 months from now after the next coupon is paid. ?
Business
1 answer:
dybincka [34]3 years ago
5 0

Answer:

The bond price is $ 926.24  today

The bond price in six months is $ 936.81

Explanation:

Find detailed calculation in the attached spreadsheet.

Download xlsx
You might be interested in
Nature's Garden, a new restaurant situated on a busy highway in Pomona, California, specializes in a chef's salad selling for $7
mestny [16]

Answer:

Nature's Garden

a. Determination of the current average cost per meal:

Variable cost per meal = $3,800 ($4 x 950) based on full capacity

Fixed costs per day =        $1,710

Total costs =                     $5,510

Average cost per meal = $5,510/950 = $5.80

b. Girl Scouts' offer of $150 for 30 girls:

Offered price per person = $5 ($150/30)

Projecting a loss of $0.60 per meal, this gives a total loss of $18 ($0.60 x 30)

Projected revenue from the offer = $150 + $18 = $168

Projected revenue per meal = $168/30 = $5.60

Actual revenue to be received per meal = $5.00

Loss of $0.60

The owner arrived at the $0.60 loss because his total costs per meal was $5.60.

c. Since the variable cost per meal is $4, the restaurant owner could accept the offer if the additional 300 meals will not increase his daily fixed costs due to lack of capacity.  If the fixed costs increase with this addition, then it may not be reasonable to accept the offer.  Based on this offer, the contribution to defraying fixed costs, given present capacity, is only $0.50 ($4.50 - $4) per meal.

Explanation:

Selling price of chef's salad = $7

Daily fixed costs = $1,710

Variable costs per meal = $4

Meals capacity per day = 950

Average meals = 900

Nature's Garden has a fixed cost of $1,710 based on current capacity of 950 meals per day.  The fixed cost may increase with increasing capacity.  This fact must be borne in mind when making decisions.

4 0
3 years ago
How to write a recommendation letter for a student?.
frutty [35]

Answer:

Ask the student for academic information. ...

Address your letter accordingly. ...

Introduce yourself and your qualifications. ...

Include details about your academic relationship with the student. ...

Highlight the student's qualifications with examples. ...

Conclude your letter.

Explanation:

7 0
2 years ago
Petromax Enterprises uses a continuous review inventory control system for one of its SKUs. The following information is availab
SVETLANKA909090 [29]

Answer:

  • Economic order quantity= 1406 units
  • Safety Stock= 630 units
  • Reorder Point= 14130 units

Explanation:

Given Demand D= 78,000units/year

Ordering cost S = $38.00/order

Holding cost H = $3.00unit/year

Average lead time = 9 weeks

Standard deviation of weekly demand = 120 units

a) Economic order quantity:

EOQ = \sqrt{(2*D*S)/H}

EOQ = \sqrt{(2*78000*38)/3}

1405.7 = <u>1406 Units</u>

b)<u> Safety Stock:</u>

Weekly demand = 78000/52 =1500 units

Standard deviation of weekly demand = 120 units

Lead time is 9 weeks

Using the normsinv() in excel the Z value for the desired 96% service level is 1.75

Safety stock = z\sigma _{d}\sqrt{L}

= 1.75*120*\sqrt{9}

= 630 units

Reorder point = average lead time demand + safety stock

= lead time * weekly demand + saftey stock

  = 9*1500 + 630

  = 13500 + 630

Reorder point = 14130

8 0
3 years ago
Read 2 more answers
Sillytime Park competes with Splash World by providing a variety of rides. Sillytime sells tickets at $ 60 per person as aâ one-
horsena [70]

Answer:

BEP 378,000

Explanation:

\frac{Fixed\:Cost}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

60 - 24 = 36 contribution margin

every units contribution $36 dollars

36 / 60 = 0.6 CM ratio

each dollar of sale generate 60 cents of contribution

226,800 fixed cost / 0.6 CMR = 378,000 BEP  in dollars

3 0
3 years ago
Briefly discuss Sherif’s (1966) classic study of boys at summer camp in terms of findings and implications for understanding com
Serhud [2]

Sherif’s (1966) classic Robbers Cave study of boys at summer camp finds the relationship between the two groups of boys immediately deteriorated when the event began.

In the 1940s and 1950s, social psychologist Muzafer Sherif and his associates conducted a number of investigations, including the Robbers Cave experiment. Sherif investigated the interactions between male groups at summer camps and a competitor group with the hypothesis that "when two groups have competing purposes... their members would become antagonistic to one other even when the groups are constituted of normal well-adjusted individuals at a summer camp " The Robbers Cave study found the incident swiftly escalated once the parties started throwing jabs. The Sherif discovered that the summer camps' surveys, in which they were asked to score their own team and the opposing team on good and bad attributes, contained questions about group animosity.

Learn more about Sherif here:

brainly.com/question/14407858

#SPJ9

5 0
10 months ago
Other questions:
  • Nancy's union has negotiated a three-year wage contract that provides for a 2.4% increase indexed to inflation. The rates of inf
    13·1 answer
  • Kayla is a supervisor who manages a production line. she spends several hours each week developing specific employee work assign
    13·1 answer
  • What is urban economics
    14·1 answer
  • Why should you establish an online account with the travel charge card vendor?
    6·1 answer
  • On July 1, a bank loaned $10,000 to a company in the form of a note receivable. The note requires interest at an annual rate of
    7·1 answer
  • 4. Which of the following is not a situation involving external shock?
    12·2 answers
  • Suppose that the labor market for life guards is initially in equilibrium. Then swimming pool owners adopt a new labor-saving te
    10·1 answer
  • Until the 2003 playoffs, NBA had used a best-of-five format for the first-round series, that is, the series would end as soon as
    12·1 answer
  • A company that makes fireplace mantles uses computer modeling in order to ensure that the process used makes the most efficient
    15·1 answer
  • According to the reading, what are some strategies for saving money? (Select all that apply)​
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!