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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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Marizza181 [45]

The best type of system for the order of the jewelry would be:

 

<span>1. </span>A customer chooses what he wants from the jewelry

<span>2. </span>He/she must check if the special jewels that he/she wanted are available for pre-order

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<span>Special orders should always be made to be pre-ordered, if the supplier has the item.</span>

6 0
3 years ago
All Seasons, Inc. ordered $5,000 worth of Christmas decorations from Santa, Inc. The shipment of decorations was to arrive no la
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Answer:

C. Compensatory damages and consequential damages.

Explanation:

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5 0
4 years ago
Read 2 more answers
In a new margin account, a customer buys 1,000 shares of ABC stock at $40 per share. The stock rises to $50 during the next week
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Answer:

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The SMA balance acts like a stabilizer and cannot be taken away even if the price of the stocks fall slightly. The price of stocks must fall 25% in order for the SMA to be withdrawn.

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4 0
3 years ago
If nominal GDP is $900 billion and, on average, each dollar is spent six times in the economy over a year, then the quantity of
NeTakaya

Answer:

Option B (150) is the correct answer.

Explanation:

Given:

Nominal GDP,

= $900

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= 6

As we know,

⇒ Nominal \ GDP=Quantity \ of \ demanded \ money\times Money \ velocity

By putting the vales, we get

⇒                    900=Quantity\times 6  

⇒           Quantity=\frac{900}{6}

⇒                           =150

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