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quester [9]
3 years ago
6

What happens to the price of a three-year annual coupon paying bond with an 8% coupon when interest rates change from 8% to 8.96

%
Business
1 answer:
ExtremeBDS [4]3 years ago
7 0

Answer:

It would reduce to -24.3185

Explanation:

I solved this on paper and have added the solution as an attachment

At 8% rate of interest the price of this bond is 1000

At 8.96% rate of interest the calculated price of the coupon bond is 975.681

975.681-1000 = -24.3185

When the interest rate falls from 8% to 8.96%, the price of the bond reduces by -24.3185

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What is personal finance? Personal finance is essentially about finance at a_____ level. It helps improve your short term and lo
SVETLANKA909090 [29]

Answer:

The answer would be Basic, Prosperity.

Explanation:

Personal finance is essentially about finances at a basic level. It helps improve your short term and long term Prosperity.

Personal finances are the finances or money of a person solely belong to himself. A person's own finances are usually limited. He can meet the basic necessities for himself and his family. These finances can be used to bring prosperity to a person and his family. Personal finances are always help in the time of emergency. People manage their personal finances for the future of their children, to manage their education, and to live a life of their personal choice and ease.  

8 0
4 years ago
Read 2 more answers
Riley says that the present value of $700 one year from today if the interest rate is 6 percent isless than the present value of
devlian [24]

Answer:

A) Both Riley and Anh are correct.

Explanation:

to see who is right we can calculate:

PV = FV / (1 + r)ⁿ

FV = PV x (1 + r)ⁿ

Riley's statement:

PV = $700 / (1 + 6%) = $660.38

PV = $700 / (1 + 3%)² = $659.82

Riley is right

Anh's statement:

FV = $700 x (1 + 6%) = $742

FV = $700 x (1 + 3%)² = $742.63

Anh is right

They are both right due to compound interest, since compound interest means that the interest earned will also earn more interest.

6 0
3 years ago
John runs a small business and employs 150 people. He is able to spend enough time with his family because he can plan his work
Lorico [155]

Answer: Flexibility

Explanation:

3 0
4 years ago
Wrecked furniture. ralph buys new furniture for his living room from good times furniture. it is agreed that the goods will be p
lidiya [134]
<h2>the seller had the duty to deliver the goods to ralph's home</h2>

Explanation:

According to the question, the information provided are:

  • Ralph is a customer who ordered furniture from "Good times furniture"
  • Ralph agreed to receive goods from common carrier
  • While transporting, the goods got damaged.

Considering the above information, whatever may be the mode of delivery and through whomever it might be, seller is the sole responsible person to deliver the product.

A Customer does not know about the mediators. He only needs the product and he has rights only to question the seller and not the mediator.

7 0
4 years ago
The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity i
victus00 [196]

Answer:

Quantity variance.

Explanation:

The difference between actual and standard cost caused by the difference between the actual quantity and the standard quantity is called the Quantity variance.

For instance, if Tony needs a standard quantity of 50 pounds of iron to construct a burglary, but only used 51 pounds, then the quantity variance is 1 pound of iron.

<em>Hence, the quantity variance is simply the difference between the actual quantity of materials that should be used and the quantity of materials that was used. </em>

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4 years ago
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