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kherson [118]
3 years ago
5

Consider a bond with a coupon of 5.2 percent, eight years to maturity, and a current price of $1,053.10. Suppose the yield on th

e bond suddenly increases by 2 percent. a. Use duration to estimate the new price of the bond. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
Sindrei [870]3 years ago
7 0

$936.41 is the new price of the bond.

<u>Explanation:</u>

<u>New price of the bond after using the duration is calculated as follows:</u>

Purchase date = 01 june 2016, Maturity date = 01 june 2024, frequency = 1

Face value = $10000, Annual coupon rate = 5.20 percent, Yield to maturity = 6.40 percent,

NPER = 6.688257877

PMT = $52.00

New price of the bond = $936.41 ( rounded to two decimal places)

Note: I have used an excel formula so as to calculate the new price of the bond.

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You work for a Europe-based company that is interested in doing business internationally. As a top manager of the firm, you want
vesna_86 [32]

Answer: (A) ISO 9001

Explanation:

 The ISO 9001 stand for the international organization for standardization. The main aim of the ISO 9001 is that it provide the quality management for monitoring purpose and also improving the quality of the business.

The QMS (Quality management system) mainly help to focusing on the essential or important business area and it also increase the efficiency of the business. ISO 9001 is standardize the organization product and the services quality.

Therefore, Option (A) is correct.

6 0
3 years ago
Why must we worship God?​
nalin [4]

Answer:

bcoz God has given us everything

Explanation:

and we should have the habit to pray to god everyday. It's a good habit

7 0
3 years ago
Assume that output was 1,000 units in January and 3,500 units in February, utility cost is a mixed cost, and the fixed cost of u
kiruha [24]

Answer:

$0.60

Explanation:

Missing Information: Table is missing, hence, attached with the answer.

Variable cost = Total utilities cost - Fixed cost

                      = $2,600 - $2,000

                      = $600

Variable rate per unit = Variable cost ÷ No. of units produced

                                    = $600 ÷ 1000

                                    = 0.6

Thus, variable rate per unit of output for utilities cost is $0.60.

6 0
3 years ago
In a recent year hart corporation had net income of $125,000, interest expense of $30,000, and tax expense of $40,000. what was
makkiz [27]

Net income = $125,000

Interest expense = $30,000

Tax expense = $40,000

Interest times hart corporation earned for the year = ?

First add all the expenses and then divided by interest expense to get interest times.

= ($125,000 + $30,000 + $40,000) / $30,000

= $195,000 / $30,000

<span>= 6.5 </span>

4 0
3 years ago
What are the accounting differences between cash and receivables from the perspective of a buyer? A seller? How are these differ
bogdanovich [222]

Answer:

From a buyer's perspective, a sale made on credit represents a liability. While a sale made on cash represents a decrease of current assets.

From a seller's perspective, a sale made on credit or cash increases current assets, but the possibility of a bad debt always exist, therefore, accounts receivables must be periodically adjusted due to bad debts.

If the seller or buyer uses accrual accounting system, the previous description holds, but if they use cash basis accounting, things change a lot. When use cash basis, transactions are recorded only when cash is exchanged, so accounts receivables do not actually increase assets (seller's perspective), and accounts payables do not increase liabilities (buyer's perspective).

6 0
2 years ago
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