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tankabanditka [31]
3 years ago
11

You have been offered a 10-year bond issued by Tiger Inc., at a price of $950.00. The bond has a coupon rate of 8% and pays the

coupon semiannually. Similar bonds in the market offers a yield of 9% today. Should you buy the bonds at the offered price
Business
1 answer:
andriy [413]3 years ago
6 0

Answer:

since the market price is lower than the offered price, you should reject this offer

Explanation:

bond's market value

PV of face value = $1,000 / (1 + 4.5%)²⁰ = $414.64

PV of coupon payments = $40 x 13.00794 (PV annuity factor, 20 periods, 4.5%) = $520.32

market price = $934.96

since the market price is lower than the offered price, you should reject this offer

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Economic growth will reduce the future real GDP of an economy. expand the production possibilities of an economy. increase an ec
nikklg [1K]

Answer:

The correct option is B. expand the production possibilities of an economy.

Explanation:

Economic growth can be defined as the increase in an economy's production of economic goods and services, often compared from one period of time to another. It can be measured in any of the following:

  • Nominal or real (adjusted for inflation) terms.
  • Gross National Product (GNP)
  • Gross Domestic Product (GDP), etc.

Contributors to economic growth include:

  • Increases in capital goods.
  • Increase in labor force.
  • Technology.
  • Human capital.

In simplest terms therefore, economic growth is used to refer to an increase in the aggregate production in an economy.

5 0
3 years ago
A national health care plan would also control the wildly escalating cost of prescription drugs. This would particularly benefit
Kamila [148]

Pathos. The author is trying to connect and persuade the audience through an emotional truth and reality.

8 0
3 years ago
In this course, you learned the way people work is changing. Describe three alternative types of employment that have become pop
UkoKoshka [18]

Answer:

It would be types of work that are different than the traditional full-time, commute to the office, 9-5, Monday-Friday job.

Explanation:

7 0
3 years ago
Tom O'Brien has a 2-stock portfolio with a total value of $100,000. $47,500 is invested in Stock A with a beta of 0.75 and the r
Degger [83]

Answer:

1.10

Explanation:

The computation of portfolio's beta is shown below:-

= Stock A Beta × Invested in Stock A ÷ Total value + Stock B Beta × (Total value - Invested in Stock A) ÷ Invested in Stock A

= 0.75 × $47,500 ÷ $100,000 + 1.42 × ($100,000 - $47,500) ÷ $100,000

= 0.75 × $47,500 ÷ $100,000 + 1.42 × $52,500 ÷ $100,000

= 0.75 × 0.475 + 1.42 × 0.525

= 0.35625 + 0.7455

= 1.10175

or

= 1.10

Therefore for computing the portfolio beta we simply applied the above formula.

4 0
3 years ago
If a customer writes 26 checks per month, which bank will charge her the least in fees
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NBT bank of america on Mohawk Street
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3 years ago
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