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
rjkz [21]
3 years ago
15

A bond has annual coupons, $1000 par value, 2 years to maturity, 8% coupons and a 6% yield. Calculate the Macaulay Duration. The

settlement date (purchase date) is 1/1/2030 and maturity date is 1/1/2032.
Give your answer to two decimal place.
Business
1 answer:
Softa [21]3 years ago
7 0

Answer:

The answer is "1.93 years".

Explanation:

Macaula \ \ duration \ \ \ \ \ \ \ \ \ \ 1000 \times 8\%\\\\

years \ \ \ \   cash \ flows \ \ \ \  pv\ of \ 6\%\ \ \ \ present \ value \ \ \ \ current \ value \ \ \ \  pv/current \ value \ \ \ \frac{pv}{cp}\times t\$80.00\ \ \ \ \ \ \ 0.9434 \ \ \ \ \ \ \ \$75.472 \ \ \ \ \ \ \ \$1,036.67 \ \ \ \ \ \ \ 0.0728 \ \ \ \ \ \ \ 0.0728\\\\\$ 1,080.00 \ \ \ \ \ \ \ 0.8900 \ \ \ \ \ \ \ \$961.196 \ \ \ \ \ \ \ \$1,036.67 \ \ \ \ \ \ \ 0.9272 \ \ \ \ \ \ \ 1.8544\\\\

                                             \$ 1,036.668 \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \   1.92772\\\\

that's why the Macaula duration is 1.93 years.

You might be interested in
Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is
Pie

Answer:

b. discharges the employer from the contract.

Explanation:

When an employee enters a contract with the employer there is an agreement that the employee will perform their duties effectively (in this case Emma as a billing manager) and the employer is obligated to pay her for services provided.

If Emma is failing to meet his obligations by being absent from work and even when present fails to adequately do her job, the employer is also discharged from his agreed duty on the contract.

Emma's actions discharges the employer from the contract.

4 0
3 years ago
The Association of Organic Food Growers, which does not include all organic farmers and ranchers, refuses to deal with any parti
zmey [24]

Answer:

a per se violation of antitrust law.

Explanation:

The antitrust laws can be defined as those laws that are created by the US government to protect consumers from unfair means of competition in market. The aim of creating such laws is to ensure the protection of customers from corruptive business practices and also to ensure safe healthy competitive environment among same business companies.

<u>In the given scenario, the Association of Organic Food Growers is violating the antitrust law by boycotting farmers, ranchers, etc. The antitrust laws are violated by companies in several ways among them is by boycotting</u>.

Boycotting can be defined as an agreement between several companies that excludes a group of customers or market to avert them from buying aanyy goods or products.

This boycotting agreement is a per se violation of antitrust law.

5 0
2 years ago
The ________ is determined by the amount by which government spending exceeds government revenue in a fiscal year. budget defici
Amiraneli [1.4K]

The answer to this question is Budget Deficit. Budget Deficit shows that the government spending is exceeding the government revenue in a year. In order to resolve the problem in budget deficit the government should cut the expenditures or the government spending and find a way to increase revenue of the country.

8 0
3 years ago
The employees at Violet Inc. are required to complete their work and leave the office premises by 6:00 p.m. Team outings are org
earnstyle [38]

Answer: Norms

Explanation:

According to the given scenario, the violet Inc are basically organized the team outing every month for their employees and the company are expected from every employee to be present in the outing.

The given scenario is basically exemplifies the norms as it refers to the attitude and also the behavior. The norms is one of the social values that helps for developing the personality and the human behavior.

Norms is basically defined the standards or the rules for the human on the basis of their attitude and behavior.        

  Therefore, Norms is the correct answer.

4 0
3 years ago
Definition of pre customer contact​
Alinara [238K]

Answer and Explanation:

As the name suggests the pre customer contact means contacting the customer before selling the product so that the firm could able to find out the requirement of the customer what he or she needs

The firm has the responsibility to provide the information about their products and services so that the customer could able to decide what he or she actually wants

After the selling the person could become the customer

8 0
3 years ago
Other questions:
  • Maria wants to purchase a new computer and go to the Caribbean for spring break. The computer is priced at $1,299, and the vacat
    7·2 answers
  • Selling, general, and administrative expenses were $80,000; net sales were $390,000; interest expense was $16,000; research and
    15·1 answer
  • Creative Sound Systems sold investments, land, and its own common stock for $38 million, $15.8 million, and $41.6 million, respe
    8·1 answer
  • You are the manager of Local Electronics Shop (LES), a small brick-and-mortar retail camera and electronics store. One of your e
    14·1 answer
  • QUESTION 1<br> To what does tax progressivity refer? (5 points)
    14·1 answer
  • Capital budgeting is concerned with the month to month investments of a firm true or false
    10·1 answer
  • The Sunny Hills school district always has a flood of applicants because of the continuous learning opportunities they provide a
    5·1 answer
  • Question 62
    9·2 answers
  • Presented below is information for Concord Corporation for the month of March 2020.
    7·1 answer
  • River City Recycling just paid its annual dividend of $1.15 per share. The required return is 12.3 percent and the dividend grow
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!