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aalyn [17]
3 years ago
6

Philip Morris has issued bonds that pay semiannually with the following characteristics:

Business
1 answer:
topjm [15]3 years ago
5 0

Answer:

a)  ≈  9.6 years

b)   Modified duration is a better measure because Modified duration consider the concept of negative convexity

c) i) coupon of bond = 4%

  Modified duration will increase since the coupon rate of payment decreased

ii) Maturity of bond = 7

 Modified duration will decline as Maturity period has declined to 7 years

Explanation:

A) Calculate modified duration using the preceding information

modified duration = Macaulay duration / ( 1 + (yield to maturity / 2 ))

                             = 10 / ( 1 + ( 0.08 / 2 ))

                             = 9.615 years

B) Modified duration is a better measure because Modified duration consider the concept of negative convexity while Macaulay methods shows the inverse relationship between the duration of the bond and coupon payment .

<u>C) Determine Direction of change in modified duration if </u>

i) coupon of bond = 4%

  Modified duration will increase since the coupon rate of payment decreased

ii) Maturity of bond = 7

 Modified duration will decline as Maturity period has declined to 7 years

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Bronigan’s, a maker of handheld video games, recently analyzed its manufacturing process to identify value-added and non-value-a
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Manufacturing efficiency ratio measure the proportion of time it takes to perform value-added activities. This information is used to reduce time spent on non value-adding activities, thereby reducing cost and making production faster.

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3 years ago
Under Armour uses its website to sell its products, but Nathan Shriver, art director of Interactive, believes that what the webs
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Answer:

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And the correct answer is the option D: Part of the consumer's daily life.

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As a student in the Principles of Management class of Ama Ghana University, you are expected to have experiential knowledge so t
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San Consulting is one of the finest consulting firm in the Greater Accra Region. The firm is always a first choice for individuals who want to pursue their career in business. The Organizational structure of San Consulting is not clearly defined. San's profits are falling because management practices are not according to the other competitive organizations. The managers working at San are facing excess workload and pressure for their work. Their job descriptions is not clearly defined and they are forced to work in multiple departments at the same time due to which they are losing focus on their own work.  

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Non Current Asset Section

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Land held for future use                        $150,000

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Equipment                                             $450,000

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