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Illusion [34]
3 years ago
13

Which of the following is true of F a c e b o o k advertisements?

Business
1 answer:
morpeh [17]3 years ago
8 0
They’re affordable and highly targeted.
You might be interested in
Both Bond Bill and Bond Ted have 10.4 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 5 ye
AURORKA [14]

Answer:

Ans,

a) If interest rates suddenly rise by 3 percent, Bill´s bond would drop by -20.02%  and Ted´s bond would go down by -36.07%

.

b) If rates were to suddenly fall by 3 percent, Bill´s bond would rise by 26.79%

and Ted´s bond would rise too by 86.47%

.

Explanation:

Hi, first let´s go ahead and establish the stable scenario, for that we are going to use the information of the problem but we need to add the discount rate of the bond or yield, which is the missing information. All this so this concept can be explained in a better way, so for this example we´ll say that the yield of both bonds is 10% compounded semi-annually, the same units as the coupon. Now we have to use the following formula.

Price=\frac{Coupon((1+Yield)^{n}-1) }{Yield(1+Yield)^{n} } +\frac{FaceValue}{(1+Yield)^{n} }

Where:

Coupon = (%Coupon/2)*FaceValue= (0.104/2)*1,000=52

Yield = we are going to assume 10% annual, that is 5% semi-annual

n = Payment periods (For Bill n=5*2=10, for Ted, n=22*2=44)

So, let´s see what is the price of each bond if the yield was 10% annual compounded semi-annually.

Price(Bill)=\frac{52((1+0.05)^{10}-1) }{0.05(1+0.05)^{10} } +\frac{1,000}{(1+0.05)^{10} } =1,015.44

In Ted´s case, that is:

Price(Ted)=\frac{52((1+0.05)^{44}-1) }{0.05(1+0.05)^{44} } +\frac{1,000}{(1+0.05)^{44} } = 1,035.33

Now, if the interest rate (Yield) suddenly goes up by 3%, this is what happens to Bill´s Bond

Price(Bill)=\frac{52((1+0.08)^{10}-1) }{0.08(1+0.08)^{10} } +\frac{1,000}{(1+0.08)^{10} } = 812.12

If yield goes down by 3%, this is the new price of Bill´s bond.

Price(Bill)=\frac{52((1+0.02)^{10}-1) }{0.02(1+0.02)^{10} } +\frac{1,000}{(1+0.02)^{10} } =  1,287.44

Now, in the case of Ted, this is what happens to the price if the yield goes up.

Price(Ted)=\frac{52((1+0.08)^{44}-1) }{0.08(1+0.08)^{44} } +\frac{1,000}{(1+0.08)^{44} } =  661.84

If it goes down by 3%, this would be the price for Ted´s bond.

Price(Ted)=\frac{52((1+0.02)^{44}-1) }{0.02(1+0.02)^{44} } +\frac{1,000}{(1+0.02)^{44} } =   1,930.56

Now, in percentage, what we need to use is the following formula.

Change=\frac{(VariationValue-BaseValue)}{BaseValue} x100

For example, in the case of Bill´s bond, which yield went up by 3%, this is what we should do.

Change=\frac{(812.12-1,015.44)}{1,015.44} x100=-20.02Percent

So, the price variation is -20.02% if the yield rises by 3%.

This are the results of the prices and calculations for you to answer this question. Best of luck.

                         Bill        Ted                       % (Bill)       %(Ted)

Base Price     $1,015.44    $1,035.33    

(+) 3% Yield  $812.12          $661.84      -20.02%          -36.07%

(-) 3% Yield  $1,287.44     $1,930.56       26.79%            86.47%

5 0
3 years ago
You should indicate that you are available for an interview in which part of a cover letter?
nlexa [21]

Answer: NOT the second paragraph

Explanation: ed 2021

7 0
3 years ago
Read 2 more answers
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eduard
B- interior designer !!! Being able to design is an import part in showing off your creative side :) hope this helps
7 0
3 years ago
Refrez Inc., a U.S.-based cereal manufacturer, begins selling its products in China. While people in the United States eat cerea
STALIN [3.7K]

The obstacle to defining the research problem was that the company failed  in collecting quantitative data /Selection of inappropriate respondent resulted in wrong output.

Explanation:

A research design is a blue print that a company prepares for conducting  marketing research .

A firm collects quantitative data by conducting surveys and asking the customers or consumers to fill the forms (questionnaires).These surveys and questionnaires helps the company in making product related decision in various markets.(i.e how to customize the product as per the taste and the preferences of the consumers)

<u>The obstacle to defining the research problem was that the company failed  in collecting quantitative data /Selection of inappropriate respondent resulted in wrong output.Hence the company Refrez Inc failed to acknowledge the fact that people in the United States eat cereal with cold milk, whereas the people of China eat cereal with hot milk.</u>

As a result, Refrez Inc witnessed a decline in sales of its product in Chinese market .

6 0
3 years ago
The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase: "There were nearly four millio
tester [92]

Answer:

Please see attachment

Explanation:

Please see attachment

Download pdf
6 0
3 years ago
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