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aleksley [76]
3 years ago
14

A bond currently sells for $1,050, which gives it a yield to maturity of 6%. Suppose that if the yield increases by 25 basis poi

nts, the price of the bond falls to $1,025. What is the modified duration of this bond? (Do not round intermediate calculations. Round your answer to 4 decimal places.)
Duration years
Business
1 answer:
Fittoniya [83]3 years ago
6 0

Answer:

9.52 years

Explanation:

Calculation for the modified duration of this bond

First step is to calculate the Percentage decrease in Price of Bond

Percentage decrease in Price of Bond =($1,025-$1,050)/$1,050

Percentage decrease in Price of Bond=-2.3810%

Second step is to calculate the Percentage change in price

Using this formula

Percentage change in price =-Modified Duration*Change in YTM

Let plug in the formula

-2.3810% =-Modified Duration*0.25%

Modified Duration =2.3810%/0.25%

Modified Duration =9.52 years

Therefore the modified duration of this bond is 9.52 years

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Answer:

The correct answer is C

Explanation:

Execution phase of the project is generally the longest phase in the life cycle of project management and also consumes the energy as well as resources. These process help in managing the issues, time, cost, change and quality.

The execution phase is the phase which has long time duration and it develop or create the team of project for the product or service and then present the final or finished product to the customer.

Therefore, in this case, is the execution stage the person is assisting.

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Accompanying the bank statement was a debit memo for bank service charges. What entry is required in the company's accounts? A)
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Answer:

Explanation:

debit Miscellaneous Administrative Expense credit Cash

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3 years ago
Tamarisk, Inc. sells merchandise on account for $2500 to Culver Company with credit terms of 2/15, n/30. Culver Company returns
denis23 [38]

Answer:

$2,254

Explanation:

The computation of the amount of the check is shown below:

= Sale value of merchandise - returned goods - discount amount

where,

Sale value of merchandise is $2,500

Returned goods is $200

And, the discount is 2% of $2,300 = $46

So, the amount of the check is

= $2,500 - $200 - $46

= $2,254

We simply applied the above formula so that the correct amount could come

7 0
3 years ago
What activity is designed to generate a listing of potential clients?
Sidana [21]
Prospecting is an activity that is designed to help a real estate broker generate more listings. This can be a time consuming endeavor, but well worth it in the end for brokers. One of the ways to start prospecting is to make cold calls. Before making any cold calls, and have a script ready for each call. This is one of the most effective prospecting methods. Always stick to a schedule and set aside time each day for prospecting. Other prospecting idea's are to update all of your social media accounts, ask for referrals, start a door hanging campaign, and use the website Zillow to find more leads. You can also offer an information session for first time buyers in your area, this will help to meet new people. Always reach out to expired real estate listings and see if they are interested inputting their home back on the market. Many real estate brokers will also sponsor a children's sport team, and at each game introduce yourself to the parents. It also crucial to keep in touch with all of your past clients, this helps build trust. You can send out holiday cards to members of the community to make people know that you do. Prospecting isn't for everyone, but it is the best activity in real estate to generate new leads. 
6 0
3 years ago
Motorola used the normal distribution to determine the probability of defects and the number of defects expected in a production
dimulka [17.4K]

Answer:

a. 0.0124

b.  12

c. 0.0054

d. 5

e. advantage of reducing process variation is that probability of defect item is decreased

Explanation:

mean = 6

SD = 0.1

a)probability of a defect = 1 - P(5.75 <X <6.25)

= 1 - P(-2.5<Z <2.5)= = 1 - 2(0.9938-0.5) = 2(1-0.9938) = 2*0.0062 = 0.0124

b)In a production run of 1000 parts,number of defects would be found = 1000*0.124 = 12.4 = 12

c)1 - P(5.75 <X <6.25) = 1- P(-0.25/0.09 <Z < 0.25/0.09) = 1- P(-2.777 <Z<2.777)= 1 - 2 (0.9973 -0.5)    

= 2 ( 1 - 0.9973) = 2*(0.0027) =0.0054

d)In a production run of 1000 parts,number of defects would be found = 1000*0.0054 = 5.4 = 5

e) advantage of reducing process variation is that probability of defect item is decreased.

4 0
3 years ago
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