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
8090 [49]
3 years ago
8

A bond has a modified duration of 8 and a price of 112,955 calculated using an annual effective interest rate of 6.4%. EMAC is t

he estimated price of this bond at an interest rate of 7.0% using the first-order Macaulay approximation EMOD is the estimated price of this bond at an interest rate of 7.0% using the first-order modified approximation Calculate EC EMOD A. 91 B. 102 C. 116 D. 127 E. 143
Business
1 answer:
quester [9]3 years ago
5 0

Answer:

Option E (143) is the appropriate solution.

Explanation:

According to the question,

The modified duration will be:

= \frac{Macaulay \ duration}{(1+yield)}

= 8\times 1.064

= 8.512

The percentage change in price will be:

= -0.6\times 8 \ percent

= -4.8 (%)

Now,

The EMOD will be:

= 112955\times (1-4.8 \ percent)

= 107533.2 ($)

Or,

The EMAC will be:

= 112955\times (\frac{1.064}{1.07} )^{8.512}

= 107675.7 ($)

Hence,

⇒ EMOD-EMAC=107533.2-107675.7

                                  =-142.5

⇒ EMAC-EMOD=143

You might be interested in
The chief executive of a large telecommunications company wanted to restructure the organization so product leaders would have m
katen-ka-za [31]

This kind of resistance from the product leaders is an example of resistance due to breaking routines. Furthermore, there are more types of resistance to change in an organization's culture & structure.

 

EXPLANATION:

Here is the list of types of resistance to change in an organization’s culture and structure:

• Fear of Failure

Intimidating cultural and structural alterations on the employee can make them doubt their competences. This self-doubt decreases self-confidence and weakens personal development and growth. The workers may resist such alterations without bearing in mind the potential profits of the proposed alterations, as a consequence. The low output might be understood before the workers finally learn and adjust to life with the alterations.

• Loss of Status

Cultural and structural alterations that intimidate to change dominant positions or remove jobs commonly cause strong resistance. Restructuring and reorganization of corporate may include managerial jobs elimination. Middle managers will oppose restructuring and any other agenda that decreases their power and the status they already possess in the organization.

• Non-Reinforcing Reward System

People resist when they do not predict positive prizes for altering their work routines. Workers presume a positive development in their work to voluntarily accept the alteration. A worker is unlikely to help an alteration that is recognized as longer work hours and enlarged pressure to perform.

• Incongruent Group Dynamics

Groups grow and apply conformity to a series of norms that lead the members' behavior. However, conformity to prevailing group norms may deject workers from receiving organizational change. Group norms that disagree with the desired changes need alteration, while the cultural and structural norms that succeed to enhance the organization need promotion.

• Breaking Routines

Individuals are creatures of habit and see it difficult to abort behavioral customs that the organization think through no longer suitable. They prefer comfort zones by remaining routine role patterns. Hence, people oppose cultural and structural changes that push them out of their comfort zones and need devoting more energy and time acquiring new role patterns.

 

LEARN MORE

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

• When involving entry employers, joint entries must be? brainly.com/question/4933698

• A company provides wages to its employees based on the amount workers produce. the more employees produce, the more they earn. this type of plan is called? brainly.com/question/6382273

KEYWORDS : Resistance to change, organization’s culture and structure

Subject  : Business

Class  : 10-12

Sub-Chapter : Organizational Behavior

8 0
3 years ago
During most of the Soviet rule (and certainly after 1934), any form of experimental art was considered dissident and, therefore,
QveST [7]

The statement, "During most of the Soviet rule (and certainly after 1934), any form of experimental art was considered dissident and, therefore, could only exist as a part of underground culture" is True

Option a

<u>Explanation: </u>

All across the 1920s, the creation of Soviet Art was followed by an era of severe ideological competitiveness among artistic groups, which each tried to ensure that their views were given a priority for the determination of the shapes and instructions under which soviet art will also grow.

The increasing crisis of radical left wing artwork done this fight even more angry, In the late 1930's, several avant-garde movements that emerged in the 1910s had become tired and began depicting artifacts in real life, as they sought to return to the traditional model of drawn pictures.

6 0
3 years ago
Over the past several years, like other auto manufacturers, General Motors (GM) has introduced many new models of sport utility
Aleonysh [2.5K]

Answer:

D. Market maturity

Explanation:

Over the past several years, like other auto manufacturers, General Motors (GM) has introduced many new models of sport utility vehicles (SUVs) in all of its major divisions. This proliferation of SUVs and an increase in gasoline prices have caused sales to level off. In response, General Motors offered rebates of up to $5,000, or no-interest financing, on selected models of SUVs. The largest rebates went to current owners of GM vehicles, so that they would replace their current vehicles with a GM model instead of switching to another brand. The rebates have been heavily advertised on national television. Profit margins per vehicle have shrunk as a result of these costly promotions.

General Motors is currently operating in the Market maturity stage of production life cycle.

6 0
3 years ago
The 1950s were marked by great suspicion about advertisers and their potential persuasive powers. Do you see any lingering effec
Mars2501 [29]

Answer: Yes I do.

Explanation:

The 1950s were a time of great fear to people in the developed world. They feared that as the Cold War was just beginning, there were being watched by foreign powers and that they couldn't trust a lot of people because they didn't know who was who. Especially in America where the fear of Communism gripped the nation. They did not know if certain adverts were Communist Propaganda and they feared that sometimes the information government's had about them was used to Target them.

This fear is still quite evident today. Take the 2016 Election rumours for instance. Certain Social media platforms claimed that foreign powers used their sites to advertise the President and get him elected. The ease by which this was accepted showed that people do indeed still have fear advertising.

3 0
4 years ago
Read 2 more answers
Assume there are 100 suppliers of widgets in the widget market. Half of these suppliers supply 35 widgets to the market each, a
Bess [88]

Answer:

Total widgets supplied in the market will be 4000

So option (d) will be correct answer

Explanation:

We have given total number of suppliers = 100

It is given that half of the suppliers supply 35 widgets

So 50 supplier supply 35 widgets each

So total number widgets supplied by 50 supplier = 50×35 = 1750

A quarter, that is 25 supplier supply 40 widgets

So widgets supplied by 25 supplier = 25×40 = 1000

And other quarter, that is 25 supplier supply 50 widgets each

So widgets supplied by 25 supplier = 25×50 = 1250

So total widgets supplied in the market will be = 1750+1000+1250 = 4000

So option (d) will be correct answer

5 0
3 years ago
Other questions:
  • The dominant business ethic in corporate communications is _____, which is "a principle that allows those affected by administra
    10·1 answer
  • "the two best times to keep your mouth shut are when you're swimming and when you're angry."
    5·1 answer
  • Manufacturing overhead costs incurred for the month​ are: Utilities $ 39 comma 000 Depreciation on equipment $ 24 comma 000 Repa
    11·1 answer
  • Share an example from your life where you had to make a choice knowing that you are giving up opportunities for doing or gaining
    14·1 answer
  • Texas ranks in terms of state spending per capita and it ranks in terms of how much money it gets from the federal government
    9·1 answer
  • 4. Leon is catering a luncheon. He is only supplying the food. What kind of catering service is he providing? A. Social B. Corpo
    5·1 answer
  • Various factors or forces impact a company’s decision to go into a foreign market and affect the outcome of that decision. If a
    12·2 answers
  • Japan and russia disagree over ownership of which islands?
    13·1 answer
  • When an accelerated depreciation method is used to calculate depreciation expense: Multiple Choice the accumulated depreciation
    5·1 answer
  • Mini-Case Nolan and Sadie have just opened a new restaurant on the edge of town, Cajun Kitchen. They own the land and building a
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!