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
Rasek [7]
3 years ago
14

Bond J has a coupon rate of 3 percent and Bond K has a coupon rate of 9 percent. Both bonds have 13 years to maturity, make semi

annual payments, and have a YTM of 6 percent. a. If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds
Business
1 answer:
noname [10]3 years ago
6 0

Solution :

Given :

Coupon rate for Bond J = 3%

Coupon rate for Bond K = 9%

YTM = 6 %

Therefore,

The current price for Bond J = $ 718.54       =PV(6%/2,13x2,30/2,1000)x -1

The current price for Bond K = $ 1281.46       =PV(6%/2,13x2,90/2,1000)x -1

If the interest rate by 2%,

Bond J =  $ 583.42     =  -18.80% (change in bond price)

Bond K  = $ 1083.32   = -15.46% (change in bond price)

You might be interested in
True true or false increasing RAM, a computer's CPU can process more quickly
Airida [17]
This would be a true statement

5 0
3 years ago
Which of the following statements is true about skill-based pay?A. Skill-based pay provides a way to ensure that employees can u
Elena-2011 [213]

Answer:

Among the advantages of skill-based pay are the following:

Flexibility is increased by encouraging the performance of multiple tasks. It enables job rotation, and filling of temporary vacancies due, for instance, to absenteeism. It therefore contributes to a leaner workforce.

Explanation:

7 0
3 years ago
Net income is ________. Question 7 options: A) not cash flow B) earnings before interest and taxes C) the cash flow from the ope
victus00 [196]

Answer:d the increase or decrease in cash flow for the period of time

Explanation:

It’s the amount gained and lost in the amount of time they were in business

4 0
3 years ago
Rains Company purchased equipment on January 1 at a list price of $75,000, with credit terms 2/10, n/30. Payment was made within
katrin2010 [14]

Answer:

B. $81,570.

Explanation:

(75,000 x 98%) + 3,750 + 1,320 + 3,000 = 81,570.

7 0
3 years ago
1. If specifications are not clear:
siniylev [52]

Answer:

If specifications are not clear: competitive bidding will have a high probability of failure

Explanation:

The reason is not far-fetched as a result of an unclear specification which will definitely leads to competitive bidding with high probability of failure

7 0
3 years ago
Other questions:
  • Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results whi
    12·1 answer
  • ​Vasco's utility function​ is: Upper U equals 10 Upper X squared Upper ZU = 10X2Z The price of X is px​ = ​$55​, the price of Z
    11·1 answer
  • When a homeowner visited the home depot to buy what he thought he needed to fix a leaking toilet, he gathered up materials total
    15·1 answer
  • Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. The accounting cycle for Kelly Consulting for Ap
    6·1 answer
  • Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $47,7
    14·1 answer
  • Q.23 :-Your Boss says- ' I want the job done, I do not have time to listen to your
    5·1 answer
  • Distinguish between small and large office.<br>​
    13·1 answer
  • According to Miles and Snow, a company that operates in at least two different product-market areas in which one product is stab
    9·2 answers
  • You have $27,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with
    12·1 answer
  • Which one of the following is common between optimization using total value and optimization using marginal​ analysis?
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!