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qaws [65]
3 years ago
12

Suppose that 2 years after the issue date (as in Part a) interest rates fell to 8%. Suppose further that the interest rate remai

ned at 8% for the next 8 years. What would happen to the price of the bonds over time
Business
1 answer:
Elenna [48]3 years ago
5 0

Answer:

the first part of the question is missing, so I looked fro a similar one:

<em>Suppose Hillard Manufacturing sold an issue of bonds with a 10-year maturity, a $1,000 par value, a 10% coupon rate, and semiannual interest payments.</em>

the market price of the bond after 2 years:

PV of face value = $1,000 / (1 + 4%)¹⁶ = $533.91

PV of coupon payment = $50 x 11.652 (PV annuity factor, 4%, 16 periods) = $582.60

market price = $1,116.51

the market price of the bond after 5 years:

PV of face value = $1,000 / (1 + 4%)⁶ = $790.31

PV of coupon payment = $50 x 5.2421 (PV annuity factor, 4%, 6 periods) = $262.11

market price = $1,052.42

the market price of the bond after 7 years:

PV of face value = $1,000 / (1 + 4%)² = $924.56

PV of coupon payment = $50 x 1.8861 (PV annuity factor, 4%, 2 periods) = $94.31

market price = $1,018.87

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Answer:

A

Explanation:

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Mitch training and  giving his serves autonomy to resolve any customer complaint  and issues is a form of empowerment. It goes to show that he has a level of trust in their ability to make decision and respond appropriately to the issues they might face when attending to customers.    

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State-approved riots in which russian mobs brutally attacked jewish communities, destroyed homes and businesses and even murdere
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