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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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Firm A currently dumps 157 tons of chemicals into the local river. Firm B currently dumps 183 tons of chemicals into the local r
Kruka [31]

Answer:

$20,670

Explanation:

                                               Firm A                   Firm B

Actual Dumping                         157                        183

Pollution Permits Allotted          <u> 11  </u>                        <u>  11  </u>

Reduction Required                   146                        172

Cost of Dumping 1 ton              $160                      $65

As the cost of dumping to Firm A is $160 which is higher than the marginal cost of dumping of Firm B which is $65, so it is better that Firm B take benefit from it by selling it at $65. So now total tons require dumping is 318 tons (146 + 172).

Total cost of reducing pollution = 318 tons * $65 = $20,670

3 0
3 years ago
What are the three activities according to which a statement of cash flows is organized?
HACTEHA [7]

Operations, Investing and Financing are the three activities according to which a statement of cash flows is organized.

Cash flow refers to the net balance of cash moving into and out of a business at a specific point in time. Cash is consistently moving into and out of a business.

For example- When a retailer purchases inventory, money flows out of the business toward their suppliers.

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2 years ago
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Leya [2.2K]

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Choosing the correct program, using college resources, attending your classes, and doing well in assignments and exams.

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siniylev [52]

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Form W-2, also known as the Wage and Tax Statement, is the document an employer is required to send to each employee and the Internal Revenue Service (IRS) at the end of the year. A W-2 reports the employee's annual wages and the amount of taxes withheld from their paychecks. A W-2 employee is someone whose employer deducts taxes from their paychecks and submits this information to the government.

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Neoclassical economics places a larger focus on providing extra options and <u>improving living standards, </u><u>which are ultimately decided by long-term progress.</u>

As a result, it focuses on long-term growth rather than fighting recessions.

In actuality, neoclassical economics holds that a product's price is mostly influenced by its manufacturing costs. According to neoclassical economics, the primary factor for client decision-making therefore becomes price.

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