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Lerok [7]
4 years ago
15

Both Bond Bill and Bond Ted have 9.8 percent coupons, make semiannual payments, and are priced at par value. Bond Bill has 7 yea

rs to maturity, whereas Bond Ted has 24 years to maturity. Both bonds have a par value of 1,000. a. If interest rates suddenly rise by 2 percent, what is the percentage change in the price
Business
1 answer:
Ad libitum [116K]4 years ago
6 0

Answer:

A, the price of bond Bill and bond Ted will change by -9.35% and -15.87% respectively.

B. the price of bond Bill and Ted will change by 10.63% and 21.55% respectively.

Explanation:

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Assume that interest rates on 15-year noncallable Treasury and corporate bonds with different ratings are as follows: T-bond = 7
miv72 [106K]

Answer:

Investors are risk averse, which means that they are willing to invest in low risk projects or investments. In order for an investor to invest in a riskier project, he/she will expect to receive higher returns to compensate for the extra risk. US Treasury bonds are probably the safest investments in the world, that is why they yield the lowest interest rate. AAA bonds are less risky than BBB bonds, which in turn are less risky than CCC bonds. That is why AAA bonds yield a lower return than BBB bonds, and BBB bonds yield a lower return than CCC bonds.

7 0
3 years ago
A restaurateur visits two restaurants with themes similar to his and prices his menu to approximate the prices charged for simil
Ann [662]

Answer:

Nonstructured pricing

Explanation:

Nonstructured pricing is also called copy cat method of pricing and involves a pricing that is based on prices charged by similar businesses for a product or service. The business copy cats the prices of competitors. On the other hand structured pricing is done based on the firm's internal determination of the value of a product.

A restaurateur visits two restaurants with themes similar to his and prices his menu to approximate the prices charged for similar dishes at the other restaurants. He is using no structured pricing.

8 0
3 years ago
Read 2 more answers
Why is the savings account better than a checking’s account for saving money?
Lisa [10]

Because it pays a higher rate of interest.

A savings account is better than a checking account for saving money because they normally pay a higher interest rate than a checking account. Quite often, a checking account will not pay any interest at all.

7 0
4 years ago
A mask company set up a hospitality tent outside the Olympics arena. Its goal was to eoncourage patrons to view it as an Olympic
Grace [21]

Answer: Ambush Marketing

Explanation:

The mask company is engaged in Ambush marketing in the Olympics event.

Ambush marketing is a marketing technique that businesses use to give the public an impression that they are sponsoring an event when they aren't.

3 0
3 years ago
For a 13-person team, how many extra workers should be hired to meet the labor hours needed without overtime
Paha777 [63]

For a 13-person team, The number of extra workers that should be hired to meet the labor hours needed without overtime is 7.

<h3>What is Labor hours?</h3>

This is a term that connote the total hours of workers that are said to be having or getting an hourly wage and they are the ones who are said to be directly employed on the site of a building, public works project, etc.

Note that "Labor hours" is one that entails hours of work that has been carried out  by workers who have been employed by the general contractor or the subcontractors  that are found to be working on the project.

Learn more about labor hours from

brainly.com/question/24868261

8 0
3 years ago
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