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Gnom [1K]
3 years ago
15

Kylie bought a 7-year, 5,000 par value bond with an annual coupon rate of 7.6% paid semi-annually. She bought the bond with no p

remium or discount. Calculate the Macaulay duration of this bond with respect to the yield rate on the bond.
Business
1 answer:
IRISSAK [1]3 years ago
8 0

Incomplete question. The options read:

a. 5.16

b. 5.35

c. 5.56

d. 5.77

e.  5.99

Answer:

<u>b. 5.35</u>

Explanation:

Remember, we use the Macaulay duration to determine the weighted average time before any bondholder would start to receive their expected bond's cash flows.

Hence, using the formula attached below, we could find the Macaulay duration for this scenario.  In the above formula, where:

C= the periodic coupon payment

y= the periodic yield

M= the bond’s maturity value

n= duration of bond in periods.

However, another way to get a solution is to employ an advanced calculator.

​

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The answer is A. 0. 6% of $42,000 is $2520. You only have $567 in medical expenses. You're expense has to be more than $2520 before you can deduct it.
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4 years ago
In 2009, the imaginary nation of Viloxia had a population of 5,000 and real GDP of 500,000. In 2010 it had a population of 5,100
Rashid [163]

The correct answer is A. During 2009 real GDP in Viloxia grew by 2 percent, which is about the same as average U.S. growth over the last one-hundred years.

Given that in 2009, the imaginary nation of Viloxia had a population of 5,000 and real GDP of 500,000, and in 2010 it had a population of 5,100 and real GDP of 520,200, to determine the growth of real GDP in Viloxia during 2009, the the following calculations must be made:

  • Total GDP / population = real GDP
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  • 102 = X
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Therefore, during 2009 Viloxia's GDP grew by 2 percent, which is about the same as average U.S. growth over the last one-hundred years.

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6 0
3 years ago
ervis accepts all major bank credit cards, including those issued by Northern Bank (NB), which assesses a 4.5% charge on sales f
Kobotan [32]

Answer:

Preparation of the journal entry that Jervis should make on June 28 to record the deposit

Dr Cash ($5,800 - $261) $ $5,539

Dr Credit card expense ($5,800 X 4.5%) $ 261

Cr Sales $5,800

(5,539+261)

Explanation:

Since Jervis assesses a 4.5% charge on sales for using its card in which On June 28, he had $5,800 in NB Card credit sales this means we have to Debit Cash with $5,539 ($5,800 - $261) and as well Debit Credit card expense with $261 ($5,800 X 4.5%) while we Credit Sales with $5,800 (5,539+261)

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4 years ago
.If a grower wishes to work in wholesale floriculture, which of the following will prove most broadly helpful when determining w
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  • Guarantee the production of the right measure of an asset.

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1 year ago
The top ten arms-exporting companies give millions to
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