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Alchen [17]
3 years ago
7

An 8%, 15-year bond has a yield to maturity of 10% and duration of 8.05 years. If the market yield changes by 25 basis points, h

ow much change will there be in the bond's price?
Business
1 answer:
Mama L [17]3 years ago
4 0

Answer:

-2.01%

Explanation:

Modified duration = 8.05 years

Market yield = 0.25%

Initial yield to maturity = 10%

As per the price change and duration formula,

Change in price/Price of bond = - Modified Duration * Change in yield

Change in price/Price of bond = - 8.05 * 0.0025

Change in price/Price of bond = -0.020125

Change in price/Price of bond = -2.01%

Thus, if the market yield increases by 25 basis points, there will be a - 2.01% change in bond's price due to duration

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Decision : It would be better to Replace Old Machine

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6 0
3 years ago
Teams have better communication than other workers because they get to ______. a. Know each other better b. Attend communication
svp [43]

Answer:

a. Know each other better

Explanation:

A team refers to a group of people or set of individuals possessing various skill set, knowledge and experience coming together to work on a project or task in order to successfully achieve a set goal and objective.

This ultimately implies that, a team comprises of individuals, workers or employees having complementary skills, knowledge and experience needed to execute a project or task successfully. Therefore, a worker that is working in a team is usually privileged to interact with the other members of the team and as a result, this enhances performance and strengthen the level of relationship they share.

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6 0
3 years ago
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At times, an insignificant detail can be important to a significant event. <br> a. True<br> b. False
Minchanka [31]
A. True. You never know what the smallest detail may have.
5 0
3 years ago
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A key objective for a retail layout is to A. expose customers to​ high-margin items. B. balance​ low-cost storage with​ low-cost
BARSIC [14]

Answer:

A. expose customers to​ high-margin items.

Explanation:

Retail layout refers to how retailers organize the shelf space and allocate all the products in a way that allows them to influence customer decisions. The objectives of the layout include creating a good customer experience and allowing customers to access easily the products with higher margins to generate more value for the company. According to this, the answer is that a key objective for a retail layout is to expose customers to​ high-margin items.

8 0
3 years ago
Suppose Fiat recently entered into an Agreement and Plan of Merger with Case for $4.3 billion. Prior to the merger, the market f
-Dominant- [34]

Answer:

the increase resulting from this merger = 256

Explanation:

before the merger, both Fiat and Case's contribution to Herfindahl-Hirschman index = 16² + 8² = 320

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the increase resulting from this merger = 576 - 320 = 256

8 0
2 years ago
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