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Natalija [7]
2 years ago
13

You find a zero coupon bond with a par value of $10,000 and 13 years to maturity. If the yield to maturity on this bond is 4.9 p

ercent, what is the dollar price of the bond
Business
1 answer:
PIT_PIT [208]2 years ago
4 0

Answer:

$18,763.38

Explanation:

Calculation to determine the dollar price of the bond

Using this formula

Value of bond=Par value/(1+YTM/2)^(2*time period)

Let plug in the formula

Value of bond=10,000/(1+0.049/2)^(2*13)

Value of bond=10,000/(1.0245)^26

Value of bond=10,000/1.8763378

Value of bond=$18,763.38(Approx).

Therefore the dollar price of the bond is $18,763.38

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Lowering the interest rate will:A. decrease spending on new homes. B. decrease spending on consumer durables. C. decrease the va
ahrayia [7]

Answer:

D: increase investment projects by firms

Explanation:

When interest rates are lowered, it is a green signal for small and medium size enterprises to borrow money for their investment projects.

3 0
3 years ago
A key characteristic of a successful entrepreneur is:
avanturin [10]

Answer:

C) Learning to fail intelligently

Explanation:

Economics recognizes four factors of production, the first three are land, labor and capital:

  1. land: includes any raw materials and natural resources used to produce other goods
  2. labor: human work involved in the production process.
  3. capital: physical tools and equipment involved in the production process

The fourth and probably most important factor is entrepreneurship. An entrepreneur is the person that combines all the other 3 factors of production into a business. Entrepreneurs take the risk of setting up their own business and many times are great innovators that are able to recognize opportunities and take them.

But doing business is not easy and being an entrepreneur is even harder. No matter how much positive energy and great ideas an entrepreneur has, there is chance that he will fail several times. Creative processes are not linear, they work on a trial and error basis and sometimes that also applies to running a new business. But as the great Micheal Jordan said," the important thing is not how many times you fall, but how many times you stand up."

high energy level

6 0
3 years ago
Two​ firms, A and B​, must each choose either a low price or a high price for their product. The payoff matrix shows the profit
ahrayia [7]

Answer: 1. A.Both firms will choose the low price.

2. B. Both firms would choose the high price.

Explanation:

1. If the firms cannot cooperate with each other and must choose simultaneously, both firms will choose the low price.

This is because at the low price both of them are at the highest profit they can make when they are not cooperating. For instance, if Firm B chooses Low Price and Firm A chooses High Price, Firm A will make $3 million while Firm be will make $8 million.

If Firm B decides to have a high price then firm A will take the low price and make $8 million in profit while Firm B makes $4 million. If they are not working together, they will both have to take the low price to make the most profit.

2. If the firms could cooperate with each​ other, both firms would choose the high price.

The is because they will be making more than competing and getting a lower profit. Should they cooperate they will each get $7 million in profit because they will pick the option they can both make the highest profit at. The is better than competing and making only $5 and $6 million respectively.

If you need any clarification do comment. Cheers.

4 0
3 years ago
The difference between your sales and your cost of goods sold is known as your what
Anettt [7]

Answer:

profit.

Explanation: its just right

8 0
3 years ago
Melanie is working in a laboratory and spills a bottle of reagent which sources would most likely tell her how to clean the spil
I am Lyosha [343]
<span>The lab teacher would be one resource that could be asked, since they are likely experienced in the use and disposal of the reagent. Also, in other instances, the Material Safety Data Sheets could be accessed, since they will have all the steps required for handling, disposal, and cleaning of the reagent, and any hazards that need to be accounted for in the cleaning-up process.</span>
7 0
3 years ago
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