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3 years ago

Question 6 of 10

Business

1 answer:

Cerrena [4.2K]3 years ago

3 0

Answer:

B. To determine what caused an accident and how similar accidents can be prevented in the future.

Read more about payment

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8 0

2 years ago

Miller Corporation has a premium bond making semiannual payments. The bond has a coupon rate of 8 percent, a YTM of 6 percent, a

noname [10]

Answer:

Miller-bond:

today: $ 1,167.68

after 1-year: $ 1,157.74

after 3 year: $ 1,136.03

after 7-year: $ 1,084.25

after 11-year: $ 1,018.87

at maturity: $ 1,000.00

Modigliani-bond:

today: $ 847.53

after 1-year: $ 855.49

after 3 year: $ 873.41

after 7-year: $ 918.89

after 11-year: $ 981.14

at maturity: $ 1,000.00

Explanation:

We need to solve for the present value of the coupon payment and maturity of each bonds:

Miller:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 80.000

time 12

rate 0.06

$80 \times \frac{1-(1+0.06)^{-12} }{0.06} = PV\\$

PV $670.7075

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 12.00

rate 0.06

$\frac{1000}{(1 + 0.06)^{12} } = PV$

PV 496.97

PV c $670.7075

PV m $496.9694

Total $1,167.6769

In few years ahead we can capitalize the bod and subtract the coupon payment

after a year:

1.167.669 x (1.06) - 80 = $1,157.7375

after three-year:

1,157.74 x 1.06^2 - 80*1.06 - 80 = 1136.033855

If we are far away then, it is better to re do the main formula

after 7-years:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 80.000

time 5

rate 0.06

$80 \times \frac{1-(1+0.06)^{-5} }{0.06} = PV\\$

PV $336.9891

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 5.00

rate 0.06

$\frac{1000}{(1 + 0.06)^{5} } = PV$

PV $747.26

PV c $336.9891

PV m $747.2582

Total $1,084.2473

1 year before maturity:

last coupon payment + maturity

1,080 /1.06 = 1.018,8679 = 1,018.87

For the Modigliani bond, we repeat the same procedure.

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 30.000

time 24

rate 0.04

$30 \times \frac{1-(1+0.04)^{-24} }{0.04} = PV\\$

PV $457.4089

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 24.00

rate 0.04

$\frac{1000}{(1 + 0.04)^{24} } = PV$

PV 390.12

PV c $457.4089

PV m $390.1215

Total $847.5304

And we repeat the procedure for other years

7 0

4 years ago

If C(x) is the cost of producing x units of a commodity, then the average cost per unit is c(x) = C(x)/x. Consider the cost func

xxTIMURxx [149]

Answer: $2,98,491.106 ⇒ Total cost of production

Explanation:

Given that,

Total cost of production at x = 1000 units

C(x) = 2000 + 170x + 4 $x^{\frac{3}{2} }$

C(1000) = 2000 + 170(1000) + 4 $1000^{\frac{3}{2} }$

= 2000 + 170000 + 126491.106

= $2,98,491.106 ⇒ Total cost of production

So, above is the cost of producing 1000 units.

3 0

4 years ago

AB Builders, Inc., has 17-year bonds outstanding with a par value of $2,000 and a quoted price of 94.863. The bonds pay interest

timofeeve [1]

Answer:

13.47%

Explanation:

yield to maturity = {coupon + [(face value - market value)/n]} / [(face value + market value)/2]

7.07% = {coupon + [($2,000 - $1,897.26)/34]} / [($2,000 + $1,897.26)/2]

7.07% = (coupon + $3.0218) / $1,948.63

coupon + $3.0218 = $1,948.63 x 7.07% = $137.7681

coupon = $137.7681 - $3.0218 = $134.7463

semiannual coupon rate = $134.7463 / $2,000 = 0.06737 x 2 = 0.1347 ≈ 13.47%

8 0

4 years ago

1. Write any two characteristics of a company.

Softa [21]

Answer:

be honest with stuffs

pay enough attention to every thing and everyone

7 0

4 years ago