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amm1812
3 years ago
12

A government bond issued in France has a coupon rate of 5% (paid annually) and a face value of 100 euros, and it matures in 5 ye

ars. Calculate the price of the bond (in euros) if the yield to maturity is 3.5%.
Business
1 answer:
Nina [5.8K]3 years ago
8 0

Answer:

Bond Price​= 106.77

Explanation:

Giving the following information:

Face value= 100

Coupon= 100*0.05= 5

Yield To Maturity= 0.035

Years to maturity= 5 years

<u>To calculate the price of the bond, we need to use the following formula:</u>

Bond Price​= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]

Bond Price​= 5*{[1 - (1.035^-5)] / 0.035} + [100/(1.035^5)]

Bond Price​= 22.57 + 84.2

Bond Price​= 106.77

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Sally’s parents deposited $15,000 into a college savings account on her third birthday. The account had an interest rate of 9.6%
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Answer:

The correct option is yes,the $15,000 will double each 7.5 years.In 15 years ,it will double twice.

Explanation:

The 72 rule stipulates that the number of years it would take an investment to achieve accumulate a certain amount- future value, can be computed by dividing 72 by the interest rate earns by the investment

N, the number of years=72/9.6

                                      =7.5 years

Invariably,in 7.5 years' when Sally would have been 10.5 years(3 years now+7.5 years) the investment would have doubled.

By another 7.5 years when Sally would have been 18 years(10.5 years +7.5 years), the investment would have doubled twice.

The 72 rule is fast-track approach to calculating the duration of an investment.

7 0
3 years ago
Read 2 more answers
An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota, because his spouse's company transferred h
kifflom [539]

Answer:

The correct answer is option a.

Explanation:

An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota because his spouse's company transferred her to St. Paul.

The decorator is distressed because the customers in his target market have, in his words, "banal and bourgeois taste."

The customers in St. Paul have a different taste from the customers that he catered to in Los Angeles. The consumer tastes and preferences may differ from place to place according to the climatic conditions, social status, cultures, etc.

The problem with the decorator is that he does not understands that customer needs are not right or wrong, good or bad. It is not right or wrong if the customers in Minnesota have a different preference from customers in Los Angeles.

6 0
3 years ago
Imagine that you have been hired by a large pizza chain to develop an IBP campaign for a new product, the KidZa Meal, which will
fiasKO [112]

Answer:

Advertising campaign that will be best suited is by inviting kids to the restaurant and arranging free of cost activities like drawing competition or similar and give free KidZa meals to the winners. This is where children will give attention to the newly launched meal and doll shaped chef will appeal them to buy the meal.  There can be advertisements on television which will seek attention of the kids at home. There can be stalls placed at various schools to familiarize kids with restaurant and give free discount vouchers which will force them to pay a visit at the restaurant.

Explanation:

Marketing strategies for the kids is very different than the adults. The adults usually analyze cost benefit whereas kids just choose a product if it looks good and colorful. The kids decide to buy a product when it appeals them. The doll as a gift is a great feature that will appeal kids to buy the meal.

7 0
3 years ago
Han and Leia Solo have been married for 24 years and have three children who qualify as their dependents (Jacen, 4; Jaina, 14; a
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Other part of question attached

Answer and Explanation:

Answer and explanation attached

3 0
3 years ago
Employees at a pharmaceutical company make large profits by buying shares of the firm when the trials of a drug begin but before
lesantik [10]

Answer:

The correct answer is letter "C": Strong form.

Explanation:

The Efficient Market Hypothesis (EMH) is the theory that beating the market is impossible because current stock prices reflect all the information investors need to trade the markets. Technical and fundamental analysis remain useless in trying to predict future price action.

The EMH could be classified as the <em>Weak, Strong, </em>and <em>Semi-Strong EMH</em>. The strong form of the EMH establishes that insider information and public information are already in the current stock price, then, there is no special data that could provide an advantage to an investor to take advantage of the market.

In such a case,<em> the strong form of the EMH is opposed to the idea given in the example since it is proposing insider information gives employees an advantage to make large profits before the information of trial drugs is spread among the public.</em>

4 0
3 years ago
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