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KonstantinChe [14]
4 years ago
12

vA $1,000 three-year par-value bond yields an effective annual interest rate of 6%. Coupons are paid on an annual basis at a rat

e of 5% per year. Determine the modified convexity of the bond
Business
1 answer:
AveGali [126]4 years ago
4 0

Answer:

10.00

Explanation:

We haven = 3

Pv = 1000

Rate if interest = 6%

Coupon = 5% x 1000

= 50

∆y = assumed to be 1%

The formula for convexity =

(V- + V+)-2Vo/Vo+(∆y)²

We first solve for Vo

Using the financial calculator

Vo = 973.26

Then we solve for V-

Pv = 1000

Pmt = 50

I = 5%

n = 3

V- = 1000

We solve for V+

I = 7%

Pmt = 50

N = 3

V+ = 947.51

Then the convexity is gotten by putting these values into the formula

= (1000+947.51)-2x973.26/973.26x(1%)²this is approximately

10

Please check attachment for more details

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Match the following terms to the correct definition. A measure of process output divided by input that helps us determine the ef
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Answer:

3.

2.

5.

4.

1.

Explanation:

A measure of process output divided by input that helps us determine the effectiveness of the process. 3. Productivity  

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The measure of process output divided by more than one input, where those inputs must be expressed in a common unit of measure, like dollars. 5. Multi-Factor Productivity  

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4 years ago
Any differences in future development of monozygotic twins can be attributed only to _________ factors.
sergejj [24]
<span>Any differences in future development of monozygotic twins can be attributed only to "environmental factors".
</span><span>
</span>
<span>Twins can be either monozygotic or dizygotic. monozygotic refers to the identical twins which means that they develop from one zygote, which splits and forms two embryos. And  dizygotic refers to fraternal twins, which means that they develop from two different eggs. In fraternal twins, each twin is fertilized by its own sperm cell.</span>
6 0
3 years ago
ConAgra Foods is a global manufacturer of processed and packaged foods with revenues of $11 billion annually. It recently acquir
mojhsa [17]

Answer:

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Explanation:

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It is also characterized by having control over its resources and specific mission, also operates independently.

Hence, in this case, the right answer is a wholly owned subsidiary

6 0
3 years ago
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krok68 [10]

Answer:

C. The cost of plant and equipment is allocated to expense over its useful life.

Explanation:

Depreciation is defined as the fall in value of an asset; how an asset value declines or falls overtime. Causes of depreciation are wear and tear, obsolescence etc.

Depreciation is also a process, where the cost of assets(plants, equipments and machineries) are allocated to expense over their useful life. It is computed as ; cost minus scrap value divided by lifetime [ (Cost - Scrap value)] /life time

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3 years ago
A city Enterprise Fund was awarded an operating grant during the fiscal year. Assuming qualifying costs were incurred during the
Anvisha [2.4K]

Answer:

the Correct Answer is " Non-operating revenues"

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